# How invoicing works Invoices move through different statuses from the time they’re created to when they’re paid. MoneyCollect calls this the automatic collection workflow. Before you begin, create customers and products and prices to facilitate future transactions. You can use both the[ Dashboard](https://docs.moneycollect.com/docs/business-operation/invoicing/use-the-dashboard) and the API to set up and interact with MoneyCollect Invoicing. ### Invoice lifecycle The basic lifecycle for invoices looks like this: 1. A new invoice begins in the `draft` state. 2. MoneyCollect send the invoice. (You can no longer make any changes to it.) The status is set to `open`. 3. If payment succeeds, MoneyCollect updates the status to `paid`. 4. If payment fails, the invoice remains `open`. In this lifecycle example, MoneyCollect doesn’t notify the customer about the invoice. However, if you enable customer emails, we send an email receipt. ### Invoice status Invoices can take on one of five statuses. These statuses allow you to draft and revise invoices before finalization, sending, and attempting payment. In the Dashboard, open invoices appear as pending when their associated payment intent is in the pending state.

STATUS	DESCRIPTION	POSSIBLE ACTIONS
draft	The starting status for all invoices. You can still edit the invoice at this point.	You can send the invoice to `open`, or delete it if it’s a one-off.
open	The invoice has been sent, and is awaiting customer payment. You can no longer edit the invoice.	Send the invoice. You can also mark the invoice as `paid`, `void` or `uncollectible`.
paid	This invoice was paid.	No actions possible.
void	This invoice was a mistake, and must be canceled.	No actions possible.
uncollectible	The customer is unlikely to pay this invoice (treat it as bad debt in your accounting process).	You can void or pay the invoice.

#### Draft invoices Draft invoices are still editable and remain unsent. At this point, you can send the invoice, or delete it. #### Open invoices The invoice has been sent, and is awaiting customer payment. You can no longer edit the invoice. In this state, you can send the invoice. You can also mark the invoice as paid, void, or uncollectible. Invoices that have an amount due that’s less than the minimum chargeable amount automatically transition from an `open` to `paid` status and debit the amount from the customer’s credit balance. #### Paid invoices When a customer pays for an invoice through MoneyCollect, the invoice moves into the `paid` status. This status is terminal, which means that paid invoices can never take on another status. #### Voided invoices Voiding an invoice is conceptually similar to deleting (canceling) it. However, voiding an invoice maintains a paper trail, which allows you to look up the invoice by number. Voided invoices are treated as zero-value for reporting purposes, and aren’t payable. After you void an invoice, the Hosted Invoice Page is still accessible, and displays a message indicating that the invoice has been voided. You can only void invoices when they’re `open` or `uncollectible`. **To void an invoice from the Dashboard:** 1. Go to the **Invoice details** page. 2. Click **Change invoice status**. 3. Select **Void** and click **Update status**. #### Uncollectible invoices Sometimes your customers won’t be able to pay their outstanding bills. For example, assume that you supply 1,000 USD worth of services to your customer, but they’ve since declared bankruptcy, and (even after liquidating assets) won’t be able to pay the outstanding invoice balance. As a result, you decide to write off the invoice as unlikely to be paid. In this case, you can update the status of the invoice to be `uncollectible`. This allows you to track the amount owed for reporting purposes as part of your bad debt accounting process. **To change the status to uncollectible from the** [**Dashboard**](https://portal.moneycollect.com) **:** 1. Go to the **Invoice details** page. 2. Click **Change invoice status**. 3. Select **Uncollectible** and click **Update status**. #### Deleting draft invoices You can delete a draft invoice at any time. **To delete a draft invoice** **from the** [**Dashboard**](https://portal.moneycollect.com)**:** 1. Go to the **Inoices page** and choose a draft invoice you want to delete. 2. Click **Delete draft .**You can’t recover deleted draft invoices.