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Understanding Invoices

Invoices are professional billing documents used to request payment from customers when payment is not taken immediately.

What This Section Covers

  • What an invoice is and when to use one
  • Invoice types supported in Payment Center
  • Invoice statuses and lifecycle
  • Core invoice components
  • How invoices integrate with transactions
  • Payment tracking and reminders

What Is an Invoice?

An invoice is a formal request for payment that allows you to bill customers after goods or services are delivered. Invoices help you peform these tasks:
  • Offer payment terms (e.g., Net 15, Net 30)
  • Provide clear documentation for customers
  • Track unpaid, partially paid, and paid balances
  • Maintain accurate records for accounting
The difference between an invoice and a transaction is that invoices request payment that can be paid later, while transactions process immediate payments.
When a customer pays an invoice, a transaction is automatically created and linked to that invoice.

When to Use Invoices

B2B billing
Businesses expect invoices for professional transactions. Examples include consulting and wholesale.
Services
Use invoices to bill after delivery of services. Examples include freelance work and professional services.
Payment terms
Invoices allow delayed payment arrangements. Examples include Net 30 and Net 60 terms.
Project milestones
Use invoices to bill for completed work at specific project stages. Examples include construction and design projects.
Recurring services
Invoices support periodic billing cycles. Examples include retainers and maintenance contracts.

Invoice Types

Payment Center supports two invoice types:
Single Item (Non-Itemized)
Best for simple, flat-rate charges. Includes:
  • Total amount
  • Description
  • Due date
  • Customer information
  • Shipping/Freight
  • Tax and Discount
Itemized
Best for detailed billing and transparency. Includes:
  • Line items with quantity and unit price
  • Subtotals, discounts, taxes
  • Optional shipping and duty
  • Grand total

Invoice Components

Required
  • Invoice number (auto-generated or custom)
  • Customer name and email
  • Currency
  • Price (Single item or Total Itemized Price)
  • Due date
Optional
  • Description or notes
  • Line items
  • Discounts
  • Taxes
  • Shipping or freight
  • Duty

Invoice Statuses & Lifecycle

Draft
The invoice is created but not yet sent. The invoice is editable but there is no active payment link
Sent
The invoice is delivered to the customer. The payment link is active.
Partial
The invoice is partially paid and a balance remains.
Paid
The invoice is fully paid. The invoice is locked. Transactions related to the invoice are linked together.
Cancelled
The invoice is noo longer payable and the invoice link is deactivated.
Lifecycle Examples
  • Standard: Draft → Sent → Paid.
  • Partial: Sent → Partial → Paid.
  • Cancelled: Draft/Sent → Cancelled.

Delivering Invoices

  • Email (default): An invoice with the payment link is sent.
  • Payment link sharing: A link can be copied and shared.

Payment Tracking

For each invoice, you can view:
  • Payment status (unpaid, partial, paid)
  • Payment history (dates, amounts, methods)
  • Remaining balance

Partial Payments (Optional)

When enabled:
  • Customers can make multiple payments.
  • The balance updates automatically.
  • The status changes to Partial until fully paid.

Invoice Reminders

Automatic reminders can be enabled:
  • Before due date
  • After the invoice is due
Enabling reminders helps reduce late payments and improve cash flow.

Invoice and Transaction Integration

  • Payments automatically create transactions.
  • Invoice and transaction records remain linked.
  • The integration supports reconciliation and audit trails.

Invoice Numbering Rules

  • Each invoice must have a unique number.
  • Invoice numbers are auto-generated if the field is left blank.
  • Custom numbers are allowed.
Invoice numbers cannot be changed after creation.
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