How do I mark an invoice as paid?¶

There are two ways, depending on whether it was paid in full or in instalments.

Paid into a linked bank account? You can match the incoming bank transaction to the invoice instead — the payment is recorded for you. See How do I match bank payments to invoices?

Paid in full — quick way¶

Step 1. On the Invoices list, open the row menu (⋯) for the invoice and choose Mark as Paid (or open the invoice and click Mark as Paid).

Step 2. Choose the payment method (Cash, Card, Cheque or Credit).

The invoice status changes to Paid, and a matching payment is recorded in your books.

Part payments — Record Payment¶

For an invoice paid in instalments:

Step 1. Open the invoice and click Record Payment.

Step 2. Enter the Amount (it defaults to the full balance due), the Date, the Method, and any Notes.

Step 3. Click Record Payment.

While the full amount hasn't been received, the invoice shows Partially Paid and a running Balance Due. Record further payments the same way until it's settled, when it becomes Paid. Each payment appears in the Payment History on the invoice.

A fully paid invoice becomes read-only. If you need to change it, use Reverse to Draft to reopen it.

When does the invoice count as income?¶

That depends on your Accounting Method, set via the Settings button on the Invoicing page:

• Cash — the invoice counts as income in your reports when the money is received: when you mark it as paid, record a payment, or match a bank transaction to it. Only the amount actually received counts, and if a payment is removed (or a bank match is undone), it comes back out.
• Accrual (Non-Cash) — the invoice counts as income when it's sent, whether or not it's been paid.

Related guides¶

• How do I create an invoice?
• How do I send an invoice?
• How do I match bank payments to invoices?
• How do I manage line items?