Paid Invoice

What is a paid invoice?

A paid invoice is one where you've received the full amount owed. The transaction is closed—no more follow-up needed. In your records, the invoice moves from accounts receivable (money owed to you) to collected revenue (money you have).

Marking invoices as paid promptly keeps your records accurate and prevents embarrassing follow-ups on already-settled accounts.

Marking invoices as paid

When payment arrives, update your records to reflect:

• Payment date — When the payment was received
• Payment method — Check, card, bank transfer, cash
• Amount received — Confirm it matches the invoice total
• Reference number — Check number or transaction ID for your records

Partial vs. full payment

If a client pays part of an invoice, it's not fully "paid"—it has a remaining balance. Only when the entire amount is received should the invoice be marked as paid. Good invoicing software tracks partial payments and shows the outstanding balance automatically.