Invoicing software labels every invoice with a status, and the labels look self-explanatory enough that most people never examine them. They are worth examining, because each status carries an accounting consequence — and three of them are routinely used interchangeably when they mean completely different things.
The distinction that matters most is between void, delete and write off. Choosing the wrong one either breaks your numbering sequence or misrepresents what happened with a client.
The statuses and what each one means
Names vary between products, but the underlying states are consistent. What differs is which of them affect your books.
| Status | Means | Effect on your books |
|---|---|---|
| Draft | Prepared, not issued | None — no revenue, no receivable, no number consumed |
| Sent / Issued | Finalised and delivered | Revenue recognised on accrual; receivable created |
| Partially paid | Some payment received | Receivable reduced by the amount received |
| Paid | Settled in full | Receivable cleared |
| Overdue | Past due date, unpaid | Still a receivable; moves through the ageing buckets |
| Disputed / On hold | Buyer has raised an issue | Still a receivable, but collection is paused |
| Void | Cancelled after issue | Reversed, with the number and record retained |
| Written off | Accepted as uncollectable | Receivable removed; bad debt expense recorded |
Draft is the only genuinely reversible state
A draft is not an invoice. It has not been issued, it typically has not consumed a number, nothing has been recognised, and you can change or delete it freely. This is the only point in the life of an invoice where editing is unremarkable.
Everything changes at issue. From that moment the invoice is a record: the number is used, revenue is recognised on accrual books, a receivable exists, and the client may already have entered it into their own system. Editing it now creates a document that disagrees with the copy they hold.
The practical implication is to treat issuing as a deliberate act rather than a formality. Check the amounts, the dates, the purchase order reference and the delivery address while it is still a draft, because that is the cheap moment to fix them.
Void, delete, write off — three different facts
These get used as synonyms and they are not. Each records something different about what happened.
**Void** cancels an issued invoice while keeping the record. The number stays used, the invoice remains visible marked as cancelled, and the amounts reverse. Use it when the invoice should never have been issued — billed to the wrong client, duplicated, or issued for work that was cancelled before it started.
**Delete** removes the record entirely, and it is almost always the wrong choice for an issued invoice. It leaves a gap in your numbering sequence, which is exactly the pattern auditors look for, and in jurisdictions with sequential numbering requirements it can make your records defective. Delete drafts freely; do not delete issued invoices.
**Write off** says the invoice was validly issued, the money was genuinely owed, and you have accepted you will not receive it. It removes the receivable and records a bad debt expense. This is a different claim about the world from voiding — one says "this bill should not have existed", the other says "this bill was real and went unpaid".
The distinction has practical value beyond bookkeeping. A voided invoice tells you nothing about a client. A written-off one tells you they did not pay, which is information you want when they come back with new work.
Overdue is a derived state, not an action
Overdue is not something you set. It follows automatically from the due date passing without full payment, which is why an accurate due date matters more than it appears — a wrong one produces invoices that are overdue in your system and not in reality, or the reverse.
The useful view is not the flag but the ageing: how far past due, grouped into buckets. A day late and ninety days late are the same status and completely different problems, and the ageing report is what separates them.
Disputed sits alongside overdue rather than replacing it. An invoice can be both, and marking it disputed is worth doing because it explains why collection has paused. An ageing report where the oldest items are all disputed describes a very different business problem from one where they are simply unpaid.
Common Mistakes
Deleting an issued invoice
It leaves a gap in the numbering sequence and destroys the record. Void it instead — the cancellation stays visible and the number stays used.
Voiding when you should write off
Voiding says the invoice should not have existed. If the debt was real and simply went unpaid, write it off — that records the bad debt and preserves the fact for future credit decisions.
Leaving finished invoices in draft
A draft has not been issued, so no revenue and no receivable exist and nobody owes you anything. Invoices sitting in draft are a common and entirely self-inflicted cause of slow payment.
Treating overdue as a status you apply
It is derived from the due date. If invoices show as overdue when they are not, the due dates or the terms are wrong — chasing the symptom will not fix it.
Frequently Asked Questions
What is the difference between void and cancelled?
Usually nothing — different products use different words for the same thing. What matters is that the record is retained and the number stays used, rather than the invoice disappearing.
Can I reuse the number from a voided invoice?
No. The number was consumed at issue. Reusing it produces two different documents sharing an identifier, which is worse than the gap you were trying to avoid.
Should I void an invoice the client disputes?
Not while the dispute is unresolved — mark it disputed and keep it as a receivable. Void only if you conclude it should never have been issued; if you are conceding part of the amount, issue a credit note instead.
When should I write an invoice off?
When you have concluded it is genuinely uncollectable — the client has ceased trading, or pursuit would cost more than the debt. There may be tax relief for bad debts, which is another reason to record it properly rather than deleting it.
Sources & Further Reading
- Recordkeeping for businesses — Internal Revenue Service
- Invoicing and taking payment from customers — GOV.UK
Ready to put this into practice?
Create a professional invoice in your browser — free, no sign-up, no watermark.
Open the Invoice Generator