Invoice Life Cycle
A new invoice progresses through a set of stages before it gets closed. The stages that we use in our service to identify the status of an invoice are -
- Draft
- Open
- Overdue
- Closed
The progress of an invoice from one stage to another need not necessarily be sequential; meaning invoices can jump stages without following a fixed pattern.
Draft: Represents those invoices that are just created but are not yet sent to customers. Once the invoice is sent to a customer it moves to open status.
Open: Represents those invoices that are sent to the customers but are not yet paid for, even invoices that are partially paid falls into this category.
Overdue: Represents those invoices that are past their payment due date but are not yet paid for.
Closed: Represents those invoices that are closed. Invoices gets closed when the payment due against them are paid by the customer or when they are forcefully written off.
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