How invoicing works
Learn more about the basics of Invoicing.
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 and the API to set up and interact with MoneyCollect Invoicing.
Invoice lifecycle
The basic lifecycle for invoices looks like this:
A new invoice begins in the
draftstate.MoneyCollect send the invoice. (You can no longer make any changes to it.) The status is set to
open.If payment succeeds, MoneyCollect updates the status to
paid.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 |
|---|---|---|
The starting status for all invoices. You can still edit the invoice at this point. | You can send the invoice to | |
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 | |
This invoice was paid. | No actions possible. | |
This invoice was a mistake, and must be canceled. | No actions possible. | |
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:
Go to the Invoice details page.
Click Change invoice status.
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 :
Go to the Invoice details page.
Click Change invoice status.
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:
Go to the Inoices page and choose a draft invoice you want to delete.
Click Delete draft .You can’t recover deleted draft invoices.
Last updated