Life cycle of an invoice

The life cycle of an invoice refers to the stages that an invoice goes through from its creation to final payment. It involves several steps, from the initial agreement between buyer and seller to the closure of the transaction once payment is made. This guide helps you understand the typical life cycle of an invoice in Zenskar.

Life cycle of an invoice

Draft

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Definition

A newly generated invoice is considered a draft invoice: a preliminary version of an invoice open for modifications.

1. In the side panel, navigate to Invoices.
2. Click on the invoice you would like to scrutinize.

Properties of a draft invoice

• A draft invoice can be edited and deleted.
• A draft invoice can be regenerated after editing. The regenerated invoice will also be a draft invoice.
• A draft invoice can be emailed to your customer for feedback.

Approved

Once you have verified all the details of the draft invoice, it can be approved.

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Note

A draft invoice can be edited. An approved invoice cannot be edited. One approved, any adjustments to the invoice can be made only by issuing credit notes. Therefore, it is important to scrutinize the draft invoice before approving it.

Paid/Partially Paid

Your customer can make a partial payment against an approved invoice. This will turn an approved invoice into a partially paid invoice.

When a full payment is made against an approved invoice, the invoice will become a paid invoice. An approved invoice can become a paid invoice in the following ways:

• customer makes multiple partial payments amounting to the total invoice amount
• customer makes one full payment

Void

You can void an approved or a paid invoice by issuing a credit note equal to the invoice total. If an invoice is already paid then a refund is issued to the customer's source payment method.

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Note

You cannot void a draft invoice. A draft invoice can be deleted.