Invoice Status Workflow

Invoice Status Workflow

Understanding invoice statuses is crucial for tracking sales and managing customer payments. EquiBillBook uses a status workflow to track invoices through their lifecycle from creation to payment.

Invoice Statuses Overview

Invoices progress through various statuses:

• Draft
• Sent
• Paid
• Partially Paid
• Due
• Overdue
• Cancelled

Draft Status

What it means:

• Invoice is created but not finalized
• Not yet sent to the customer
• Can be edited freely
• Stock is not deducted (typically)

What you can do:

• Edit all invoice details
• Save changes
• Delete the invoice
• Finalize and send to customer

Sent Status

What it means:

• Invoice has been sent to the customer (via email or marked as sent)
• Customer has received the invoice
• Payment is pending
• Stock is deducted (if stock tracking is enabled)

What you can do:

• View and print invoice
• Record payments
• Send reminder emails
• Limited editing (depending on settings)
• Cancel if needed

Paid Status

What it means:

• Full payment has been received
• Invoice is fully paid
• Balance is zero
• No further action needed

What you can do:

• View invoice details
• Print paid invoice
• View payment history
• Generate receipt

Note: Paid invoices typically cannot be edited.

Partially Paid Status

What it means:

• Some payment has been received
• Balance amount is still outstanding
• Payment is in progress

What you can do:

• Record additional payments
• View payment history
• Send payment reminders
• Print invoice
• Limited editing (usually restricted)

Due Status

What it means:

• Payment due date has arrived
• Payment is expected but not received
• Invoice is within payment terms
• Not yet overdue

What you can do:

• Send payment reminders
• Record payments when received
• Follow up with customer
• Review payment terms

Overdue Status

What it means:

• Payment due date has passed
• Payment is delayed
• Requires follow-up action
• May require collection efforts

What you can do:

• Send urgent payment reminders
• Record payments when received
• Follow up with customer
• Review collection strategies
• Consider payment plans or write-offs

Note: Overdue invoices are typically highlighted in reports and dashboards.

Cancelled Status

What it means:

• Invoice has been cancelled/voided
• Invoice is no longer valid
• Stock is restored (if applicable)
• Customer balance is adjusted

What you can do:

• View cancelled invoice (read-only)
• View cancellation reason
• Create new invoice if needed

Note: Cancelled invoices typically cannot be edited or reactivated.

Status Transitions

Typical status flow:

1. Draft → Created but not sent
2. Draft → Sent → Invoice is finalized and sent
3. Sent → Partially Paid → First payment received
4. Sent → Paid → Full payment received
5. Partially Paid → Paid → Remaining payment received
6. Sent/Due → Overdue → Due date passed without payment
7. Any status → Cancelled → Invoice is cancelled (if permitted)

Automatic Status Updates

The system automatically updates statuses based on:

• Payment recording: Updates to Partially Paid or Paid
• Due dates: Updates to Due or Overdue
• Actions: Status changes based on user actions
• Settings: Status rules configured in settings

Manual Status Changes

Some statuses can be changed manually:

• Mark invoice as "Sent"
• Mark invoice as "Paid" (if payment received outside system)
• Cancel invoice (if permitted)
• Change status based on business rules

Status-Based Permissions

Different statuses may have different permissions:

• Draft: Full editing permissions
• Sent: Limited editing
• Paid: Read-only
• Cancelled: Read-only

Status Filtering and Reports

Use status to:

• Filter invoices in lists
• Generate status-based reports
• Track payment collections
• Monitor overdue invoices
• Analyze sales pipeline

Status Indicators

Statuses are typically displayed with:

• Color coding (e.g., green for Paid, red for Overdue)
• Icons or badges
• Text labels
• Status filters in lists

Best Practices

• Review invoice status regularly
• Follow up on Due and Overdue invoices promptly
• Keep statuses updated accurately
• Use status filters for efficient management
• Monitor status transitions for process improvements
• Document status changes when required

Troubleshooting

Common status-related issues:

• Status not updating: Check payment recording and due date settings
• Wrong status: Review invoice details and payment records
• Cannot change status: Verify permissions and status rules
• Overdue not showing: Check due date and system date settings

Status Workflow Settings

Configure status behavior in:

• Invoice settings
• Payment settings
• Notification settings
• Automation rules

Understanding invoice status workflow helps you track sales, manage payments, and maintain accurate financial records. Monitor statuses regularly to ensure timely payment collection and proper invoice management.