Understanding Invoices {#vas-smb-invoices-overview}
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Invoices are professional billing documents used to request payment from customers when payment is not taken immediately.

What This Section Covers
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* 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
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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
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**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
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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
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* Email (default): An invoice with the payment link is sent.
* Payment link sharing: A link can be copied and shared.

Payment Tracking
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For each invoice, you can view:

* Payment status (unpaid, partial, paid)
* Payment history (dates, amounts, methods)
* Remaining balance

Partial Payments (Optional)
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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
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* 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.