Invoicing

An invoice is a document that outlines the details of a transaction between a seller and a buyer. It serves as a formal demand for payment and offers proof of the goods or services that the seller has given the buyer. Invoices contain invoice items and details about the customer.

With the Invoicing module, you can create and send Speed-hosted invoices directly from the Speed web application or via APIs. This allows you to efficiently manage your invoicing process and collect timely payments from your customers.

Let’s look at the invoice life cycle

This provides an overview of the different stages an invoice goes through to understand and facilitate a seamless invoicing process.

Invoice Creation:

When a new invoice is created, its status is set to “draft” by default. In the “draft” stage, it allows maximum flexibility, i.e., enabling you to make adjustments and modifications to the invoice details as needed. As a developer, you can use the POST: /invoices endpoint to create an invoice.

Finalize an Invoice:

Once an invoice is ready for payment, it undergoes finalization. At this point, the status is changed to "open." During this stage, invoice details become unchangeable to ensure data accuracy and consistency. As a developer, you can use the POST: /invoices/{invoice_id}/finalize endpoint to finalize an invoice.

Notification to the customer:

To send a finalized invoice to your customer, you need to send the invoice to your customer. In the Speed web application, upon finalization, the system will provide an option to send it to your customers. Alternatively, you can use the [POST: /invoice/{invoice_id}/send endpoint to do so.

You can send the invoice to your customer if it is in the “draft” stage, wherein the invoice will automatically get finalized and updated to the “open” stage and be sent to the customer.

Once you send the invoice using this API, your customer will get it via email. The invoice will be included as a PDF file in this email, along with a URL link that will let your customer view the invoice's details and make a payment conveniently.

Payment Processing:

Waiting for the customer to manually process the payment using the given payment details before the due date is the next step in the invoice lifecycle.

Payment Success:

When a payment attempt is successful, the invoice status is promptly updated to "paid." This signifies that the invoice has been successfully settled and the corresponding payment has been recorded in the system.

As a developer, you can subscribe to the invoice.paid event using a webhook and plan actions accordingly for your system.

Below are details about each invoice's status:

Invoice Status Transitions in Speed Application

How do I create a personalized invoice?

Invoice Settings Guide:

The Invoice Settings section provides a standardized configuration that applies to all invoices created across your account. These global settings ensure uniformity and streamline invoice management. This guide will take you through the process of setting up and personalizing your invoice settings.

1. Branding Customization:

   You have the ability to modify the appearance of the invoice payment page to align with your brand. This can be achieved through the branding page.

2. Business Information:

   Update your account’s public information, like account name and other details, which will be displayed on invoices, by accessing the business settings.

3. Invoice Numbering:

   Invoices by default have the prefix "INV." However, you have the flexibility to modify this prefix and set any alphanumeric number ranging from 1 to 13, to align with your preferences. Any changes made to the prefix will reflect while creating a new invoice or while finalizing any draft invoice.

4. Invoice PDF:

   All newly created accounts have the PDF option turned on by default. This ensures that your customers receive emails containing both the PDF invoice and a link to the hosted payment page.

   Disabling this will stop sending invoice PDFs via email.

5. Default Memo:

   Enhance your invoices with a personalized touch by customizing the default memo. Add relevant context or information that you want to convey to your customers.

6. Default Footer:

   This feature empowers you in general to incorporate vital legal disclaimers into your invoices.

7. Default Payment Terms:

   Payment terms in invoicing refer to the agreed-upon terms and conditions that dictate when a payment for goods or services is due.

   Update payment terms to suit your business needs, with the flexibility to set a minimum of 0 days and a maximum of 365 days.

   Your chosen payment terms will be automatically applied to all new invoices created, ensuring clarity about the "Due Date".

8. Default Reminder Configuration:

   • Initially, no reminders are set for new invoices. Manual configuration is mandatory based on your preferences.

   • Add up to 10 reminders per account, each conveniently added through the "Add Reminder" button.

     Reminders can be scheduled in three ways:

     • Before the due date: This is a notification sent to the recipient of the invoice before the payment due date. It serves as a gentle reminder that the payment deadline is approaching.
     • On the due date: This reminder is sent on the actual payment due date specified in the invoice terms. It serves as a prompt for the recipient to make the payment immediately if they haven't already done so.
     • After the due date: Whenever a payment is overdue, a "after the due date" reminder is sent. This reminder indicates that the payment is overdue and requests immediate action to settle the outstanding amount
     • Reminder Mode Selection: When configuring a reminder, choose the mode of communication for sending reminders to customers from the dropdown menu. Options include:
       • Email: Send reminders via email.
       • SMS: Deliver reminders as text messages, works only if you have the customer's mobile number and calling code.
       • Email and SMS: Choose to receive reminders by SMS and email.

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Assume you have the following invoice settings under “Reminders”.

Sr. No	No. of days	Reminder type	Via
1	5	days before due date	Email
2	-	on due date	Email & SMS
3	2	days after due date	SMS

• Consider the current date as August 8, 2023.
• The customer will be sent the reminder for the following invoices on respective dates if it is not paid.

				Reminder
Invoice	Invoice #	Due Date	First	Second	Third	Fourth
1	INV-1	13th August, 2023	8th August, 2023 (Email)	13th August, 2023 (Email & SMS)	15th August, 2023 (SMS)	16th August, 2023 (SMS)
2	INV-2	12th August, 2023	12th August, 2023 (Email & SMS)	14th August, 2023 (SMS)	15th August, 2023 (SMS)
3	INV-3	8th August, 2023	8th August, 2023 (Email & SMS)	10th August, 2023 (SMS)	11th August, 2023 (SMS)

Note: For the customer to receive reminders through SMS, a phone number must be provided.

Use-cases it solves

• One-time billing:  Invoicing can be used to create one-time invoices for products or services. This can be useful for businesses that need to invoice customers for services such as consulting, training, or product sales.
• Customizable invoices: It allows businesses to customize their invoices to include their own branding, logo, and other information. This can help improve the look and feel of invoices and make them more professional.
• Payment tracking: The invoicing module provides businesses with detailed tracking information for all of their invoices. This information can be used to monitor payments, identify overdue invoices, and track the overall health of a business's accounts receivable.