# Creating and Managing Invoices

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### Before You Start: Business Verification

{% hint style="danger" %}
**Note:** Invoices require [**business verification**](/firms-bills-and-invoices/business-verification.md). Your client can complete it, or you can complete verification on their behalf (with authorization). You can still upload and prepare bills while verification is pending.

You **can** draft and prepare invoices while verification is pending. **Only sending is blocked** until verification is approved.
{% endhint %}

***

### How to Create an Invoice

1. From your client's dashboard, click **Invoices** in the left navigation menu.
2. Click **New Invoice** in the Draft column, or use the **New Invoice** button in the top-right corner.

<div align="left"><figure><img src="/files/T2ykI2shsZR6lTmSqoho" alt="" width="563"><figcaption></figcaption></figure></div>

{% hint style="info" %}
**Tip:** :sparkles: Digits automatically generates invoice numbers, but you can set your own custom numbering format in **Settings → Invoices**.
{% endhint %}

3. Add invoice details:&#x20;

| <p></p><p><strong>Customers</strong></p><p>Start typing to find an existing customer. If the customer doesn’t exist yet, click <strong>+ Add Customer</strong> in the dropdown to create a new one.</p><p><img src="/files/4GZY0gVB0qGcEAGxNFz4" alt="" data-size="original"></p>                                                                                                                                                                                                                                                                                                                                                                              |
| -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| <p></p><p><strong>Line Items</strong></p><p>Each line item requires a product. You can search your existing products or create a new one in line. For each line item, you can set:</p><ul><li>Name, description, quantity, and unit price</li><li>A revenue category (defaults to the one set on the product, or your global default if none is set)</li><li>Department and location (if your organization uses them)</li><li>A fixed or percentage-based discount</li></ul><div data-gb-custom-block data-tag="hint" data-style="info" data-icon="lightbulb-exclamation-on" class="hint hint-info"><p>Line items can be reordered by dragging them.</p></div> |
| <p><strong>Invoice-Level Discounts</strong></p><p>You can apply a discount to the entire invoice (fixed amount or percentage), separate from any line-item discounts.</p>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| <p><strong>Dates</strong></p><p>The invoice date defaults to today. For the due date, you can choose: Upon Receipt, Net 15, Net 30, Net 45, Net 60, Net 90, or a custom date. Net 30 is the default.</p>                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| <p><strong>Reference number</strong><br>An optional field for tracking purchase orders, project names, or any external reference.</p>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| <p><strong>Invoice Memo</strong></p><p>An internal or customer-facing note attached to the invoice.</p>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

4. Click **Review** to access the send flow.

***

### Review & Send

On the **Review** screen, you can:

**Branding**\
Customize the invoice appearance with a background color, cover image, and layout style. These are saved to your invoice profile. See: [Customizing Invoice Branding](/firms-bills-and-invoices/invoice-branding.md)

**Email**

* Customize the email subject line and message body (separate from the invoice memo)
* Add multiple recipients, CC, and BCC

Click **Send** to deliver the invoice. Customers receive an email with a payment link.

{% hint style="warning" %}
Sending invoices with a payment link requires completed business verification. You can still draft invoices and send them manually (share the PDF) without verification.
{% endhint %}

***

### Invoice Statuses

<table><thead><tr><th width="282.65771484375">Status</th><th>Meaning</th></tr></thead><tbody><tr><td><strong>Draft</strong></td><td>Editable. Not yet sent.</td></tr><tr><td><strong>Sent</strong></td><td>Delivered to the customer.</td></tr><tr><td><strong>Overdue</strong></td><td>Sent but past the due date.</td></tr><tr><td><strong>Manually Sent</strong></td><td>Sent outside of Digits (e.g. PDF shared directly).</td></tr><tr><td><strong>Payment Processing</strong></td><td>Customer has submitted payment, processing in progress.</td></tr><tr><td><strong>Paid / Settled</strong></td><td>Payment collected through Digits.</td></tr><tr><td><strong>Marked as Paid</strong></td><td>Payment recorded manually (offline).</td></tr><tr><td><strong>Voided</strong></td><td>Cancelled. Cannot be undone.</td></tr><tr><td><strong>Refunded / Returned / Rejected</strong></td><td>Payment reversed or failed after processing.</td></tr></tbody></table>

***

### Editing invoices by status

What you can do with an invoice depends on its status.

#### Draft invoices

Draft invoices can be fully edited. You can update line items, amounts, customer details, dates, discounts, categories, and branding before sending.

#### Sent or overdue invoices

Once an invoice has been sent, core details are locked to preserve accuracy. This includes line items, amounts, and the customer.

You can still:

* Update branding, memo, and email settings
* Resend the invoice
* Mark the invoice as paid (for offline payments)
* Void the invoice
* Duplicate the invoice to create a corrected version

If you need to make changes to the actual invoice details, duplicate it and edit the new draft.

#### Paid or settled invoices

Paid invoices are view-only and cannot be edited.

To make changes, duplicate the invoice and issue a corrected version.

#### Voided invoices

Voided invoices are also view-only. They are hidden by default.

To view them, open the menu in the top-right corner and select **Show Voided Invoices**.

***

### Viewing invoices in the Ledger

Because invoices are native ledger items, drilling into an AR entry in the Ledger takes you directly to the invoice rather than a journal entry. From the invoice, you can open a journal view to see the underlying accounting — but edits must be made on the invoice itself, not the journal.

***

### How Customers Pay

Customers receive an email with a payment link and do not need a Digits account to pay. Supported payment methods:

* **Credit card** — processing fee is paid by the business sending the invoice
* **ACH / bank transfer** — available for authenticated payers via Plaid

A shareable payment link is also available on any sent invoice for direct sharing outside of email.

***

### Frequently Asked Questions

<details>

<summary>Can I assign invoice line items to different revenue categories?</summary>

Yes. Each product can have a default revenue category set — when that product is added to a line item, its category is used automatically. You can also override the category (and department/location) on any individual line item directly while drafting. If neither the product nor the line item has a category set, it falls back to the global default in Settings → Invoices → Ledger Integration Settings.

</details>

<details>

<summary>Can I set departments and locations on line items?</summary>

Yes, if your organization uses departments or locations. These can be set per product as defaults and overridden per line item on any invoice.

</details>

<details>

<summary>Can I edit an invoice after it's been sent?</summary>

Line items, amounts, and the customer cannot be changed after sending. You can still update the branding, memo, and email content and resend the invoice. To change amounts or line items, void the invoice and duplicate it to create a corrected draft.

</details>

<details>

<summary>Can I send an invoice to multiple people?</summary>

Yes. When sending, you can add multiple recipients and include CC and BCC addresses.

</details>

<details>

<summary>What payment terms are available?</summary>

Upon Receipt, Net 15, Net 30, Net 45, Net 60, Net 90, or a custom due date. The default is Net 30.

</details>

<details>

<summary>How do I record a payment that happened outside of Digits?</summary>

See: [Manually Marking a Bill as Paid (External Payments)](/firms-bills-and-invoices/external-payments.md)

</details>

<details>

<summary>Can I download a PDF of an invoice?</summary>

Yes. Open any Sent, Overdue, or Paid invoice and use the **Download** button in the right sidebar.

</details>

<details>

<summary>Can I change the invoice number?</summary>

Digits automatically generates invoice numbers, but you can edit invoices individually or set your own custom numbering format in **Settings → Invoices**.

</details>

<details>

<summary>How do I void an invoice?</summary>

Open the invoice and select **Void Invoice**. This permanently cancels it. Use **Duplicate** to create a corrected version if needed.

</details>

<details>

<summary>Can I create an estimate and then convert it to an invoice?</summary>

Not yet. Digits doesn’t currently support creating an estimate and converting it into an invoice. For now, you’ll need to create the invoice directly (or draft it and send it when ready).

</details>

<details>

<summary>Does Digits support automatic sales tax calculation?</summary>

Not currently. Add sales tax as a manual line item on invoices, and track it using a sales tax payable category in your chart of accounts.

</details>

<details>

<summary>Who pays the processing fee when a customer pays an invoice by credit card?</summary>

The business that sends the invoice pays the processing fee. Your customer is not charged any additional fees.

</details>

<details>

<summary>Do I need to complete business verification if I only accept offline payments?</summary>

No. You can create invoices and use the Mark as Paid flow to record payments received outside of Digits without completing business verification. Verification is only required if you want to send invoices with a payment link or collect payments directly through Digits.

</details>

<details>

<summary>Can I link multiple payments (or split deposits) to one invoice?</summary>

Not yet. Each invoice can only match one transaction in Digits today. If a customer pays in split/partial transfers, you’ll need to track that mapping outside Digits for now.

</details>

<details>

<summary>Can I create recurring invoices?</summary>

Not currently. Recurring invoices are on the roadmap.

</details>

<details>

<summary>How do I view voided invoices?</summary>

From the Invoices page, click the **menu** in the top-right corner and select **Show Voided Invoices**. This will display all invoices that have been voided for reference or review.

</details>

<details>

<summary>Payments Pricing FAQ</summary>

See: [Digits Pay Pricing](/firms-bills-and-invoices/digits-pay-pricing.md)

</details>

***

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***


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