Invoices

Overview

Invoices calculate and capture revenue. They are either created manually or generated automatically by subscriptions. Invoices go through several stages in their lifecycle:

1. Draft: The invoice is created but not yet finalized. You can add or remove items, adjust quantities, and make other changes.
2. Issued: The invoice is finalized and sent to the customer. At this stage, the invoice is ready for payment.
3. Paid: The customer has paid the invoice in full. The invoice is marked as paid and no further action is required.
4. Partially paid: The customer has made a partial payment on the invoice. The remaining balance is still due.
5. Overdue: The invoice has not been paid by the due date. You may choose to send reminders or take other actions to collect payment.
6. Canceled: The invoice has been cancelled and is no longer valid. This may occur if the customer disputes the charges or if there was an error in the invoice.

By default, invoices are created in draft status and must be issued before they can be sent to customers or collected automatically. When an invoice is configured for auto-collection, Billingrails automatically issues it after a specified delay (default: 1 hour) and then attempts to charge the customer's default payment method.

If an invoice is configured to be billed by sending an email to the customer, Billingrails will issue the invoice and send it to the customer's email address.

Create an invoice

To create a new invoice using the dashboard:

1. Navigate to Invoices → Create invoice
2. Select the customer account and add line items with descriptions, quantities, and prices
3. Configure payment settings including due date, payment terms, and collection method

You can also create invoices programmatically using the Invoices API.

Credits

Invoices can apply available credits on the customer's account before determining the amount due. Credits are applied automatically during invoice issuance based on the following rules:

• Credits are applied in FIFO order (oldest first)
• Credits can cover the full or partial amount due
• If multiple credits are available, they are used sequentially until the invoice is fully paid or credits are exhausted

Payment installments

You can allow customers to spread invoice payments over time. This is useful for high-value purchases or services. To set up payment installments:

• Create a payment schedule with two or more milestones
• Each milestone has a due date and amount
• Customers pay according to the schedule
• Track partial payments automatically

Invoice settings

Invoices can be customized with various settings to meet your business needs. Some of the key settings include:

• Invoice numbering: Configure how invoice numbers are generated: sequentially, prefixed etc.
• Payment terms: You can specify the payment terms for each invoice, such as net 30 or due on receipt.
• Grace periods: You can set a grace period for overdue invoices, allowing customers additional time to make payment before late fees or other penalties are applied.