Draft Invoices

Learn how to work with draft invoices, including creating, editing, and finalizing them.

📝 What are Draft Invoices?

Draft invoices are incomplete or work-in-progress invoices that haven't been finalized or sent to customers. They allow you to:

• Save invoices while still working on them
• Return later to complete the invoice
• Review and verify details before sending
• Make changes without affecting sent invoices

Draft Status

Draft invoices are not included in financial reports or revenue calculations until they are finalized.

Creating a Draft Invoice

Automatic Draft Creation

When you start creating a new invoice, it automatically begins as a draft:

1. Click Invoices in the sidebar
2. Click New Invoice or Create button
3. Start filling in invoice details
4. The invoice is automatically saved as a draft

Manual Draft Save

While creating an invoice, you can explicitly save it as a draft:

1. Fill in the invoice details (customer, products, etc.)
2. Click Save as Draft button
3. The invoice is saved and you're returned to the invoice list

Viewing Draft Invoices

Filtering for Drafts

1. Go to Invoices page
2. Click the Status filter dropdown
3. Select Draft
4. Only draft invoices will be displayed

Draft Invoice Indicators

Draft invoices are marked with:

• Draft badge or label in gray or muted color
• Different icon (usually a pencil or document icon)
• Separate section in the invoice list
• Excluded from invoice totals/reports

Editing Draft Invoices

Draft invoices can be edited freely without restrictions.

Edit Process

1. Find the draft invoice in the invoice list
2. Click the Edit button (pencil icon) or three-dots menu
3. Select Edit from the actions menu
4. Make your changes to:
   • Customer information
   • Invoice date or due date
   • Products/services and quantities
   • Prices and discounts
   • Tax settings
   • Payment terms
   • Notes or additional details
5. Click Save as Draft to keep it in draft status
6. Or click Finalize to mark it as ready

What You Can Edit

In draft invoices, you can change:

✅ Customer - Switch to a different customer
✅ Products/Services - Add, remove, or modify items
✅ Quantities - Adjust quantities
✅ Prices - Change unit prices
✅ Discounts - Add or modify discounts
✅ Tax Rates - Change tax settings
✅ Dates - Invoice date, due date
✅ Payment Terms - Net 30, Net 60, etc.
✅ Notes - Add or edit notes

Finalizing Draft Invoices

When your draft invoice is ready, you can finalize it.

Finalize Process

1. Open the draft invoice for editing
2. Review all details carefully
3. Click Finalize Invoice or Mark as Final button
4. The invoice status changes from Draft to Pending or Sent
5. Invoice number is locked (if using auto-numbering)

After Finalizing

Once finalized, invoices have editing restrictions to maintain audit trails. You may not be able to change certain fields.

Auto-Finalize on Send

Sending an invoice automatically finalizes it:

1. Open the draft invoice
2. Click Send Invoice button
3. Enter customer email
4. Click Send
5. Invoice is automatically finalized and status changes to Sent

Deleting Draft Invoices

Draft invoices can be deleted completely since they haven't been sent to customers.

Delete Process

1. Go to Invoices list
2. Find the draft invoice
3. Click the three-dots menu (⋮) or Actions button
4. Select Delete from the menu
5. Confirm deletion in the dialog box
6. The draft invoice is permanently removed

Safe to Delete

Since drafts haven't been sent to customers and aren't included in reports, deleting them won't affect your accounting records.

Bulk Delete Drafts

To delete multiple draft invoices at once:

1. Filter invoices to show only Drafts
2. Select checkboxes next to the invoices you want to delete
3. Click Bulk Actions or Delete Selected
4. Confirm the deletion
5. All selected drafts are removed

Converting Drafts to Final Invoices

Standard Conversion

1. Edit the draft invoice
2. Verify all information is complete and accurate
3. Click Finalize button
4. Invoice moves from Draft to Pending status

Send and Finalize

1. Open the draft invoice
2. Click Send to Customer button
3. Draft is automatically finalized
4. Invoice is emailed to customer
5. Status changes to Sent

Best Practices

Use Drafts For

✅ Complex invoices - Save progress on invoices with many line items
✅ Pending information - When waiting for customer details or pricing confirmation
✅ Template creation - Create draft templates for recurring services
✅ Month-end processing - Prepare multiple invoices in advance
✅ Review process - Save drafts for manager approval before sending

Don't Use Drafts For

❌ Quick invoices - For simple invoices, create and send immediately
❌ Long-term storage - Don't leave drafts unused for months
❌ Sent invoices - Once sent, it's no longer a draft

Draft Management Tips

1. Review regularly - Check draft invoices weekly
2. Clean up old drafts - Delete or finalize drafts older than 30 days
3. Use clear naming - Add notes to identify what the draft is for
4. Set reminders - Note when you need to return to complete a draft
5. Bulk process - Finalize multiple drafts at month-end

Common Scenarios

Scenario 1: Waiting for Pricing Confirmation

Problem: You need to invoice a customer but are waiting for final pricing.

Solution:

1. Create a draft invoice with customer and products
2. Enter estimated prices with a note "Pending final pricing"
3. Save as draft
4. When pricing is confirmed, edit the draft
5. Update prices and finalize

Scenario 2: Creating Template for Recurring Services

Problem: You invoice the same customer monthly for the same services.

Solution:

1. Create a draft invoice with all standard items
2. Add customer, products, and quantities
3. Save as draft with note "Monthly template - DO NOT SEND"
4. Each month, duplicate this draft
5. Update dates and amounts
6. Finalize and send

Scenario 3: Batch Invoicing

Problem: You need to create 20 invoices at month-end.

Solution:

1. Create all 20 invoices as drafts during the month
2. Add customer and product details as work is completed
3. At month-end, review all drafts
4. Finalize or send all invoices at once
5. Clean workflow without rushing

Draft Invoice Limitations

What Drafts Cannot Do

❌ Cannot be paid - Customers cannot pay draft invoices
❌ Not in reports - Excluded from revenue and accounting reports
❌ No payment reminders - System won't send payment reminders for drafts
❌ Not tracked for overdue - No overdue status since they're not active
❌ No customer visibility - Customers cannot see draft invoices in portal

When Drafts Expire

Check your system settings for draft expiration rules:

• Some systems auto-delete drafts after 90 days
• Others mark old drafts for review
• Configure in Settings → Invoice Settings

Troubleshooting

Cannot Find Draft Invoice

Problem: Created a draft but can't find it.

Solutions:

1. Check the Status filter is set to show Drafts
2. Search by customer name or invoice number
3. Check if it was accidentally deleted
4. Look in the All Invoices view without filters

Draft Won't Save

Problem: Changes to draft invoice aren't saving.

Solutions:

1. Ensure required fields are filled (customer, at least one product)
2. Check for validation errors (highlighted in red)
3. Verify you have permission to create/edit invoices
4. Try refreshing the page and re-entering changes

Cannot Delete Draft

Problem: Delete option is grayed out for draft invoice.

Solutions:

1. Verify the invoice is truly in Draft status
2. Check if you have delete permissions
3. Ensure the draft isn't locked by another user
4. Try from the edit screen instead of the list view

Next Steps

• Editing Invoices - Learn about editing finalized invoices
• Managing Invoice Payments - Record payments against invoices
• Deleting Invoices - Understand invoice deletion rules
• Invoice Overview - Back to invoice management basics

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Pro Tip: Use drafts liberally! It's better to save a work-in-progress invoice as a draft than to rush and send an incorrect invoice to a customer.