Invoices
Complete guide to invoice management in SettleWise
Invoices in SettleWise represent bills sent to customers for services, deposits, or other charges. They track payment status across one or two phases and sync automatically with QuickBooks.
Invoice Statuses
SettleWise uses different statuses depending on whether the invoice uses single-phase or two-phase payments.
Single-phase invoices
| Status | Description |
|---|---|
| Pending | Created and sent, awaiting payment |
| Partial | Some payment received, balance remaining |
| Paid | Fully paid |
| Overpaid | Payment received exceeds invoice total — excess becomes customer credit |
| Overdue | Past due date, not fully paid |
| Refunded | Refund processed via credit memo |
Two-phase invoices
| Status | Description |
|---|---|
| Phase 1 Pending | Deposit (Phase 1) not yet received |
| Phase 1 Partial | Partial deposit received |
| Phase 1 Overdue | Deposit past due date |
| Phase 2 Pending | Deposit complete, final payment (Phase 2) pending |
| Phase 2 Partial | Partial final payment received |
| Phase 2 Overdue | Final payment past due date |
| Completed | Both phases fully paid |
How statuses transition
Single-phase invoices
| From | To | Trigger |
|---|---|---|
| Pending | Partial | Partial payment received |
| Pending | Overdue | Due date has passed |
| Partial / Overdue | Paid | Remaining balance covered |
| Any paid state | Overpaid | Excess payment received |
| Any paid state | Refunded | Credit memo issued |
Two-phase invoices
| From | To | Trigger |
|---|---|---|
| Phase 1 Pending | Phase 1 Partial | Partial deposit received |
| Phase 1 Partial | Phase 2 Pending | Deposit fully paid |
| Phase 2 Pending | Phase 2 Partial | Partial final payment received |
| Phase 2 Partial | Completed | Final payment fully covered |
Statuses update automatically when payments are processed. Overdue is calculated based on due dates — an invoice becomes overdue when the current date passes its due date.
Single-Phase vs. Two-Phase Payments
| Single-phase | Two-phase | |
|---|---|---|
| How it works | One payment covers the full amount | Deposit (Phase 1) + final payment (Phase 2) |
| Due dates | One due date | Separate due dates for each phase |
| Best for | Standard services, small amounts | Large amounts, events, seasonal bookings |
| Event date | Not required | Required — determines Phase 2 due date |
| Deposit % | N/A | Configurable in organization settings |
| Reminders | Sent based on single due date | Phase-specific reminders |
The deposit percentage and Phase 2 due date offset are configured in Settings → Organization → Payment Configuration. For example: 50% deposit due on receipt, final payment due 7 days before the event date.
Creating Invoices
Manual creation
- Navigate to Invoices → Create Invoice
- Select or create a customer (email required for sending)
- Add line items — from your product catalog or custom entries
- Set the due date and payment structure (single or two-phase)
- Click Create and Send
What happens behind the scenes:
- Invoice gets a unique display number (e.g.,
INV-0042) - PDF is generated automatically
- Customer receives an email with invoice details (and a Stripe payment link if connected)
- Invoice syncs to QuickBooks (customer and products are created in QB if they don't exist)
Using the AI Assistant
Use natural language to create invoices:
"Crear una factura para Juan Pérez por $1,500"
"Invoice Smith for 2 Premium Licenses and 1 Setup, due in 30 days"
The assistant looks up customers and products by name, prepares a preview, and lets you confirm before creating.
Editing Invoices
What you can edit depends on the payment state:
| Invoice state | What can be edited | What happens |
|---|---|---|
| No payments | Everything — amounts, customer, dates, line items, notes | Simple update. Issue date resets. |
| Partially paid | Everything — amounts, customer, dates, line items, notes | Existing payments are reallocated automatically. If the new total is less than what's already paid, the excess becomes a customer credit. |
| Fully paid | Notes and metadata only | Cannot change amounts or line items. |
Editing a partially paid invoice triggers automatic payment reallocation. The system recalculates phase amounts and redistributes existing payments proportionally.
Credit Application
When a customer has available credit (from overpayments, rollovers, or other credit memos), credits are applied automatically when processing a payment:
- Credits are consumed oldest first (by creation date)
- Applied to invoices oldest first (by due date)
- Credits are applied before cash payments
- You can also create a $0 "credit-only" payment to apply credits without any cash
Cancelling and Voiding
Invoices are never deleted in SettleWise — they are voided to maintain the audit trail.
- Voiding sets the total to $0 and marks the invoice as completed
- If the invoice has applied credits, you must unapply them first
- Voided invoices can be linked to a replacement invoice for traceability
- The void syncs to QuickBooks automatically
Paid invoices are never voided directly. Use credit memos (refund, rollover, or write-off) to handle cancellations on paid invoices. This preserves the payment history.
QuickBooks Sync
Invoices sync automatically with QuickBooks Online:
| Action | What happens in QuickBooks |
|---|---|
| Create | Invoice created. Customer and products are synced first (created if missing). |
| Edit | Invoice updated with new amounts and line items. |
| Void | Invoice voided via QB API. |
| Payment validated | Payment posted to the invoice. |
Sync happens in real-time (within seconds). If QuickBooks is temporarily unavailable, the operation still completes in SettleWise but the sync will need to be retried manually.
Best Practices
- Send invoices promptly — create and send as soon as a booking or service is confirmed to start the payment clock
- Use two-phase for large amounts — split large invoices into deposit + final payment to reduce risk and improve cash flow
- Use products from your catalog — standardized line items make reports and search reliable
- Set realistic due dates — align with your collection schedule (Net 30 for standard, Due on Receipt for deposits)
- Check for credits before invoicing — available credits are applied automatically during validation, but reviewing them upfront avoids customer confusion