Every invoice has a status that indicates its current stage in the billing and payment process. Understanding these statuses helps you track your invoices easily and manage your payments more efficiently.
1. Generated
The invoice has been created but not yet sent to the client.
You can review, edit, or delete the invoice at this stage.
The invoice is not visible to the client until it’s sent.
Example:
You’ve just finished adding items and taxes to an invoice but haven’t emailed it to the client yet—its status will be Generated.
2. Sent
The invoice has been sent to the client by email.
The client can now view and pay the invoice.
You can still make limited edits (like updating notes or due dates) if no payment has been recorded.
Example:
You’ve emailed the invoice to your client for review—the status updates to Sent.
3. Payment in Transit
The payment has been recorded, but the funds are not yet cleared or deposited in your bank account.
Once the payment is confirmed, you can update the status to Paid.
Example:
Your client mailed you a check, and you’ve recorded it, but it hasn’t cleared yet—the status will show as Payment in Transit.
4. Paid
The invoice has been fully paid by the client.
No balance is due.
The invoice is automatically marked as "paid" once the full payment is recorded.
You can still view or download the paid invoice, but it cannot be edited.
Example:
Your client has made the complete payment, and the invoice now shows as Paid.
5. Written Off
The invoice is considered uncollectible and has been written off as a loss.
This is typically used when payment cannot be obtained even after multiple reminders.
A Written Off invoice cannot be edited or paid, but it remains in your records for accounting purposes.
Example:
A client closed their business and is unable to pay an overdue invoice—you mark it as Written Off to close it.