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What makes an electronic invoice active?

Author: 
Elie Toubiana
 | 
Date: 
September 23, 2022

Electronic invoices are one of the best inventions lately, and if you or your firm are not using this type of invoicing system, you are missing out on many new features. You can save a lot of time by using this invoicing system. Electronic invoicing is more efficient and requires a less manual workforce since the software will do all the proofreading. Electronic invoices can be generated through much-advanced software these days, which will keep track of the payment and will track the invoice status for you as well. Some of the best software to generate invoices is Zenbill's Invoice Builder. www.invoicebuilder.com

Billing Cycle

There is a billing lifecycle, which is started when the invoice is first generated and ends with the payment of the goods by the customer. This billing cycle is essential to every electronic invoicing system, and the advanced software today keeps track of the various stages of this cycle.

Invoice Statuses

The various stages of this cycle are also known as invoice statuses, which tell us the position of the invoice on the billing cycle. An invoice will be first drafted; it is in active form. After that, it will move to the open or not paid phase. The invoice is made up in this phase and sent to the customer. When your invoice enters this phase, you can no longer edit it; hence you cannot make any changes to it. If you want to make changes to it due to an error or further progress in your work, you will send a credit or debit invoice to the customer following your original invoice.

Moreover, when the customer pays the invoice, it is moved to the next stage, called the paid or closed stage, where the invoice is no longer active or in the open phase, and its billing cycle is effectively brought to an end.

An invoice will be in the voided category if there is an error and the system decides to scrap it. The customer will not pay for it; however, its data will still be included in the software database for other purposes.

Active Invoice

One of the main aspects of the whole billing cycle is the active phase. An invoice from the moment it is drafted and is ready to be sent is called an active invoice. This invoice is ready to be sent to the customer for billing. Moreover, it is an essential part of the billing cycle because, at this time, you can edit the invoice and make all the necessary changes since it has not left your system. Once the invoice is open or sent to the customer, it is not active anymore, and you cannot make changes to it.

Conclusion

In this article, we looked at the process of how an electronic bill is generated and what happens in the whole process until the seller is paid for their services. This whole billing cycles divided into specific parts, as we talked about above as well. Electronic invoicing systems are superior to their manual counterparts for many reasons we talked about above; hence if you are still running your business on manual invoicing systems, you should switch to automated software like Zenbill's Invoice generator for a more efficient working environment. Manual invoicing systems also leave a lot of carbon footprint since those invoices are write-down on paper and sent to the buyers.

 

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