Invoice Statuses Explained (And What to Do at Each Stage)

Most people picture an invoice as having two states: unpaid and paid. In reality it moves through several stages - and knowing which stage an invoice is in tells you exactly what to do next, or whether to do anything at all. Here's the full lifecycle in plain English.

The Invoice Lifecycle at a Glance

Draft - Sent - Viewed - (Partially Paid) - Paid.

Overdue is a branch that can happen any time after an invoice is sent, once its due date passes without full payment. Cancelled and Written Off are end states for invoices that won't be collected.

Draft

What it means: The invoice has been created but not sent. Nothing has happened on the client's side yet.

What to do: Nothing urgent, but don't let drafts pile up. A draft does nothing for your cash flow until it's sent.

Sent

What it means: The invoice has gone out to the client. The ball is in their court.

What to do: Note the due date and move on. This is a waiting state, not a warning sign.

Viewed

What it means: The client has opened the invoice for the first time. Useful to know - a later "did you get my invoice?" no longer needs to ask whether they saw it.

What to do: Still nothing urgent before the due date. If a client views an invoice and then goes quiet as the due date nears, that's a good moment for a gentle heads-up.

Overdue

What it means: The due date has passed and the invoice isn't fully paid.

What to do: This is where tracking earns its keep. A short, polite reminder is the right first move - not an accusatory one. Most overdue invoices are a busy accounts-payable person, not bad faith. Escalate tone only if reminders go unanswered. For exact wording, see our invoice reminder email templates.

Partially Paid

What it means: Some, but not all, of the invoice amount has been received.

What to do: Track the remaining balance clearly, and follow up specifically on what's still owed. "The remaining $X is outstanding" works better than a vague "please pay." Note that a partially paid invoice can also be overdue if the balance is still unpaid after the due date.

Paid

What it means: The full amount has been received. The invoice is closed.

What to do: Nothing, but a quick confirmation to the client is good practice, especially on larger invoices. It closes the loop cleanly.

Cancelled and Written Off

What it means: Cancelled is an invoice voided before it's collected. Written Off is one you've formally accepted won't be paid, usually after a long delay.

What to do: Keep the record either way. Don't delete it. A written-off invoice is still useful data: it tells you which clients or payment terms tend to cause problems, so you can adjust next time.

Why Tracking Status Beats Just "Paid vs. Unpaid"

The real value isn't knowing where one invoice stands - it's seeing the shape of all your invoices at once. If your Overdue bucket grows month over month, that's an early cash-flow warning, well before it becomes a real problem. If invoices sit in "Sent" a long time before ever reaching "Viewed," maybe they're landing in the wrong inbox.

Status, tracked consistently, is a diagnostic tool - not just a label. If you need the follow-up workflow once something is overdue, read our guide on how to track unpaid invoices as a freelancer.

How TrackYourInvoice Shows This

Every invoice in TrackYourInvoice carries a clear status through its full lifecycle - Draft, Sent, Viewed, Partially Paid, Paid, Overdue - updated automatically as clients open and pay. Opening the public invoice link marks it Viewed; a recorded or Stripe payment moves it to Partially Paid or Paid; passing the due date unpaid flags it Overdue. The dashboard rolls this up into Outstanding, Overdue, and Paid-this-period totals, so you see the shape of your invoices at a glance instead of opening each one.

Good status tracking works best when each invoice is easy to identify. For that foundation, see our guide to invoice number tracking.

Frequently Asked Questions

What does "Viewed" mean on an invoice?

The client has opened the invoice link for the first time. It doesn't mean they've committed to a payment date - just that they've seen it.

What's the difference between Overdue and Written Off?

Overdue means the due date has passed but payment is still expected. Written Off means you've formally accepted the invoice likely won't be collected - a later, different stage.

Can an invoice go from Overdue back to a normal status?

Yes. Once payment comes in, fully or partially, the status updates to Paid or Partially Paid, even if it was previously Overdue.

Why track "Partially Paid" separately from "Paid"?

Because the remaining balance still needs following up. Lumping partial payments in with "paid" or "unpaid" hides exactly how much is actually still owed.

When does an invoice become overdue?

When its due date has passed and a balance is still unpaid. A partially paid invoice can still be overdue if money remains outstanding after the due date.