In SigmaMD, invoices undergo various status changes as they move through the billing process. Understanding these statuses is crucial for managing your practice’s financial activities effectively. This guide explains the different invoice statuses and what each status signifies.
Invoice Statuses
Draft
When an invoice is first created, either by adding a member or an item, it is automatically saved as a draft. This allows for ongoing edits and updates until the invoice is finalized.
Actions: The draft status remains until the user manually issues the invoice or deletes it.
Issued
An issued invoice is sent to the member for payment and becomes available on the SigmaMD Member App. This status indicates that the invoice is now active and awaiting payment.
Actions: Once issued, the invoice can transition to either partially paid, paid, voided, or bad debt.
Partially Paid
If an invoice is paid with different methods (e.g. two cards or cash and ACH), it moves to the "Partially Paid" once a parcel is paid. This indicates that a portion of the total amount has been received, but there is still an outstanding balance.
Actions: The invoice remains partially paid until the full amount is settled or it transitions to another status like bad debt.
Paid
An invoice is marked as "Paid" when the total amount due has been received in full.
Actions: No further action is required for fully paid invoices, and they are considered closed.
Voided
An invoice can be voided if it was issued in error or if the charges are canceled. Voiding an invoice removes it from active status, ensuring it is not pursued for payment.
Actions: Voided invoices cannot be reactivated. They serve as a record for auditing and reference.
Bad Debt (flag)
When it becomes clear that an invoice is unlikely to be paid, it can be manually flagged as "Bad Debt" status. This status helps in writing off the amount as a loss for accounting purposes.
Actions: Bad debt invoices are no longer active for payment collection but remain in the records for financial tracking.
Past Due (flag)
If an invoice remains unpaid or partially paid beyond its due date, it is flagged as "Past Due". This status serves as a reminder for follow-up actions.
Actions: Past-due invoices can still be paid or partially paid. Additionally, they can be moved to bad debt or voided if necessary.
Automatic and Manual Transitions
Automatic Transitions: An invoice starts as a draft and remains so until manually issued. Once issued, it can automatically transition to partially paid or paid based on payment activity. Invoices are flagged as past due automatically if not fully paid by the due date.
Manual Transitions: Users can manually change the status of an invoice to issued, bad debt, or voided as needed.
Understanding the various invoice statuses in SigmaMD is essential for effective financial management. By keeping track of invoices through these statuses, practices can ensure timely payments, manage overdue accounts, and maintain accurate financial records. For more information on creating and managing invoices, refer to the Creating Invoices in SigmaMD article.
Comments
0 comments
Article is closed for comments.