Track Payments

This guide covers the complete process of tracking invoice payments in docs101. You will learn how to mark invoices as paid, understand invoice statuses, monitor overdue invoices, and use dashboard metrics to improve your payment collection performance.

Invoice Status Lifecycle

Every invoice in docs101 moves through a defined status lifecycle. Understanding these statuses is essential for tracking payment progress. All status transitions are performed manually by the user.

Draft Status

When: Created but not yet sent to the customer

Characteristics:

• Editable without restrictions
• Not visible to customer
• Cannot receive payments
• Can be deleted without affecting accounting

Typical Duration: Minutes to hours (until you are ready to send)

What You Can Do:

• Edit all invoice fields and positions
• Change payment terms, customer, or amounts
• Add, remove, or modify positions
• Save and return to later
• Delete the draft if not needed

Draft Duration

There is no time limit for keeping an invoice in Draft status. However, avoid leaving invoices in Draft for too long, as this can lead to accounting discrepancies.

Prepaid Status Flow

Prepaid invoices — created with the "Already Paid" payment term — follow a different status lifecycle than regular invoices:

Draft → Paid → Sent

1. Draft: Invoice is created and edited as usual
2. Paid: When finalized, the invoice skips "Sent" and is set directly to "Paid" because payment was already received
3. Sent: After you send the invoice via email, the status changes to "Sent" — this is the final state, meaning the invoice is both paid and delivered

This reversed flow is designed for scenarios where payment was received before invoicing, such as credit card charges, Stripe subscriptions, or advance payments.

Prepaid vs. Regular

For regular invoices, "Sent" comes before "Paid" (you send first, then receive payment). For prepaid invoices, "Paid" comes before "Sent" (you received payment first, then send the invoice as a receipt). See Creating a Prepaid Invoice for the creation workflow.

Sent Status

When: Sent to the customer via email

Characteristics:

• Locked from editing (cannot change amounts or positions)
• Customer receives the invoice as a ZUGFeRD-compliant PDF via email
• Ready to receive payment

Typical Duration: Days to weeks (until payment received)

What You Can Do in Sent Status:

• Resend the invoice
• Mark as paid (once payment received)
• Cancel the invoice (if needed)
• Resend the invoice via email

Following Up

If your customer has not responded after a few days, consider resending the invoice with a reminder message.

Prepaid Final State

For prepaid invoices, "Sent" is the final state — it means the invoice is both paid and delivered. No further status changes are possible.

Paid Status

When: Payment has been received from the customer and you manually mark it as paid

Characteristics:

• Invoice is locked from editing
• Removed from overdue tracking
• Payment date is recorded

Typical Duration: Permanent (archived status)

Information Recorded:

• Date payment was received
• Payment reference (bank transfer ID, etc.)

What You Can Do in Paid Status:

• View full invoice and payment history
• Export for accounting records
• Reference for future customer transactions
• Send or resend the invoice via email
• Cannot edit or modify

Prepaid Invoices in Paid Status

Prepaid invoices reach "Paid" status directly after finalization, before being sent to the customer. From this status, you can send the invoice via email — the status then changes to "Sent".

Overdue Status (Calculated)

"Overdue" is not a true status in docs101 but a calculated state based on the invoice's due date.

When: Invoice is "Sent" and current date is past the due date, and invoice is not yet paid

Characteristics:

• Calculated automatically based on due date
• Multiple invoices can be overdue simultaneously
• Visible in dashboard as separate count

How Overdue Works:

Scenario	Status	Days Overdue
Invoice sent on 2024-01-15, Due on 2024-01-22, Today is 2024-01-20	Sent (not yet overdue)	0
Invoice sent on 2024-01-15, Due on 2024-01-22, Today is 2024-01-22	Sent (due today)	0
Invoice sent on 2024-01-15, Due on 2024-01-22, Today is 2024-01-25	Overdue	3
Invoice sent on 2024-01-15, Due on 2024-01-22, Paid on 2024-01-27	Paid	N/A (no longer tracked as overdue)

Dashboard Indicator: The main dashboard shows three key counts:

• Open: Invoices sent but not yet paid (includes both on-time and overdue)
• Overdue: Count of invoices past their due date that are unpaid
• Paid: Invoices marked as paid

Due Date is Critical

The due date determines overdue status. Set it correctly to get accurate overdue reporting. If you invoice with Net 30 terms, the due date should be 30 days after the invoice date.

Canceled Status

When: Invoice is marked as canceled and should no longer be considered valid

Characteristics:

• Locked from editing
• Removed from payment tracking
• Appears in invoice list with "Canceled" badge
• Cannot be marked as paid

When to Use:

• Invoice was sent in error
• Customer returns the goods/services
• Wrong customer or amount on invoice
• Duplicate invoice issued

Accounting Treatment:

• Canceled invoices are typically recorded in accounting with a "reversal" or "cancellation" note
• Does not remove the original invoice from records, just marks it invalid

Cancellation is Permanent

Once an invoice is canceled, it cannot be "uncanceled". If you accidentally cancel an invoice, create a new corrected invoice instead.

Marking an Invoice as Paid

When you receive payment from a customer, mark the invoice as paid in docs101 to update your records and remove it from overdue tracking.

Prepaid Invoices

This section applies to regular (postpaid) invoices. Prepaid invoices are automatically marked as "Paid" during finalization — no manual marking needed. See Creating a Prepaid Invoice.

Basic Paid Marking Process

Step-by-Step:

1. Navigate to the invoice in docs101

2. Click the "Mark as Paid" button

3. A dialog opens with the following fields:

   • Paid Date: Date the payment was received (defaults to today)
   • Payment Reference: Optional identifier (bank transfer ID, etc.)
   • Notes: Optional additional details

4. Review the information and click "Confirm"

5. The invoice status changes to "Paid"

6. Invoice is removed from "Open" and "Overdue" counts

Example: Marking as Paid

Scenario: You receive a bank transfer notification for 1,500.00 on 2024-02-15 with reference "INV-2024-001".

Process:

1. Open the invoice in docs101
2. Click "Mark as Paid"
3. Enter:
   • Paid Date: 2024-02-15
   • Payment Reference: INV-2024-001
   • Notes: "Bank transfer received"
4. Click "Confirm"
5. Invoice now shows as "Paid" with the recorded date and reference

Keep Records

Store the payment confirmation (email, bank statement, etc.) with your invoice records. This proves payment was received if there is ever a dispute.

Partial Payments

If a customer makes a partial payment, you have two options:

Option 1: Wait for Full Payment

• Do not mark the invoice as paid until the full amount has been received
• The invoice stays in "Sent" (or "Overdue") status
• Once the full amount arrives, mark it as paid and note both payments in the reference

Option 2: Create a Credit Note

• If you need to track the outstanding balance separately
• Create a new invoice or credit note for the remaining amount

Best Practice: Most businesses use Option 1 (mark paid only when fully paid). Only use credit notes if you need detailed tracking of partial amounts.

Partial Payment Workflow

• Original invoice: 1,000.00 (due 2024-02-15)
• Customer pays 600.00 on 2024-02-20
• You know 400.00 is still owed
• In docs101: Do not mark paid yet
• Invoice stays in "Sent" status
• Customer pays final 400.00 on 2024-02-28
• Now mark the invoice as paid with date 2024-02-28
• Reference: "Two payments: 600.00 on 2024-02-20, 400.00 on 2024-02-28"

Monitoring Overdue Invoices

The docs101 dashboard provides several tools for tracking and managing overdue payments.

Dashboard KPIs

The main invoicing dashboard displays three key performance indicators:

1. Open Invoices Count

• Shows the total number of invoices that have been sent but not yet paid
• Includes both on-time and overdue invoices
• Clicking this widget filters the invoice list to show all "Open" invoices

2. Overdue Invoices Count

• Shows the number of invoices past their due date that remain unpaid
• Calculated as: current date > due date AND status is not "Paid"
• Clicking this widget filters to show only "Overdue" invoices
• This is your priority list for collection efforts

3. Paid Invoices Count

• Shows the total number of invoices marked as paid
• Helpful for tracking closure rate and collection success

Average Payment Duration Metric

docs101 calculates the average time from invoice date to payment date:

Metric: Average Payment Duration

• Definition: Days between invoice date and paid date (for all paid invoices in selected period)
• Example: If you invoice on the 1st and customer pays on the 15th, that is 14 days
• Purpose: Helps identify payment delays and cash flow problems

Interpretation:

• Payment Terms Net 30, Actual 35 days: Customers are paying 5 days late on average
• Payment Terms Net 30, Actual 50 days: Significant delays, investigate top slow-paying customers
• Payment Terms Net 30, Actual 28 days: Ahead of schedule, great cash flow

Use Metrics for Planning

If your average payment duration is higher than your payment terms, adjust your cash flow forecast accordingly. You may need to adjust customer terms.

Filtering and Sorting Invoices

The invoice list provides multiple filtering options to track specific invoice states:

Filter by Status:

1. Navigate to Invoices list
2. Click the "Status" filter button
3. Select from:
   • All: Show all invoices regardless of status
   • Draft: Invoices not yet sent
   • Sent: Invoices sent but not yet paid
   • Paid: Invoices marked as paid
   • Overdue: Invoices past due date and unpaid
   • Canceled: Canceled invoices

Filter by Date Range:

1. Click the "Date" filter
2. Select from predefined ranges (This Month, Last Month, Last 90 Days) or custom date range
3. Filter applies to invoice date (creation date)

Sort Options:

• Invoice Number (ascending/descending)
• Invoice Date (newest/oldest)
• Due Date (upcoming/past)
• Amount (highest/lowest)
• Customer Name (A-Z)

Example Workflow - Finding Overdue Invoices:

1. Click Status filter > Select "Overdue"
2. Click Sort > Select "Due Date" (to show oldest first)
3. Invoice list now shows all unpaid invoices past due date, sorted by how long overdue
4. Top of list shows your most urgent collection targets

Tips for Following Up on Overdue Invoices

Manual Follow-Up Process

When invoices become overdue, follow up promptly:

1. Resend the Invoice

• Open the overdue invoice
• Click "Resend Invoice"
• Add a personal message (e.g., "Payment still outstanding for INV-2024-001. Please remit by [date].")
• Send immediately

2. Make a Phone Call

• For invoices significantly overdue (30+ days)
• Speak directly with accounting contact at customer
• Ask if there is an issue with the invoice
• Confirm payment method and expected payment date

3. Send a Collections Email

• For invoices overdue 30+ days
• Use a professional but firm tone
• Reference the invoice number and original due date
• Request payment within 5-7 business days

4. Escalate if Necessary

• For invoices overdue 60+ days
• Consider legal or collections action
• Review account statement for pattern of late payment
• Discuss with customer about payment terms adjustment

Account Statements Integration

For comprehensive payment tracking across all customer transactions:

1. Go to Customers section
2. Select a customer
3. View their Account Statement
4. See all invoices (paid and unpaid) with payment dates
5. Calculate total outstanding balance
6. Identify customers with multiple overdue invoices

See Account Statements Guide for detailed instructions.

Best Practices for Payment Tracking

Payment Tracking Best Practices

• Mark Paid Immediately: When you receive payment, mark it in docs101 the same day to keep records current
• Use Payment References: Always record the reference from customer's payment (transfer ID, etc.) for reconciliation
• Set Realistic Due Dates: Due dates should match your actual terms with the customer to get accurate overdue reporting
• Monitor Overdue Count: Check your overdue invoices weekly; do not let issues pile up
• Follow Up Early: Resend invoices shortly after due date when it is fresh in customer's mind
• Track Metrics Quarterly: Review average payment duration each quarter to identify trends
• Keep Documentation: Archive payment confirmations and correspondence for audit and dispute resolution

Reference Links

• Create & Send Invoice Guide - Invoice creation workflow
• Account Statements Guide - Customer payment tracking