How to Mark an Invoice as 'Paid' and 'Do Not Pay'?

Table of Contents:

A. Who Can Mark an Invoice as Paid?

B. How to Mark an Invoice as Paid?

C. Available Payment Methods?

D. How to Mark an Invoice as Do Not Pay?

Once an invoice has been verified and paid, it's important to update its payment status in Docyt. Marking an invoice as paid helps maintain accurate financial records, avoid duplicate or overdue payments, and improve cash flow visibility by showing which invoices have been settled.

A. Who Can Mark an Invoice as Paid?

Only business owners have the authority to mark an invoice or bill as paid in Docyt.

B. How to Mark an Invoice as Paid?

To update the payment status of an invoice:

1. Log in to the Docyt dashboard

2. Go to Expense → Bill Pay → Invoice Queue.

3. Locate the invoice and click the drop-down menu next to the invoice amount.

4. Choose the payment method used to settle the invoice.

C. Available Payment Methods?

Docyt supports the following payment methods for marking invoices as paid:

1. Cash

If the invoice was paid in cash:

1. Select Cash from the dropdown.

2. Enter the payment date in the pop-up window.

3. Click Mark as Paid to record the transaction.

2. Credit Card

If the invoice was paid via credit card:

1. Select Credit Card from the dropdown.

2. Choose the appropriate card and enter the payment date.

3. Click Mark as Paid to confirm.

3. Manual Check

If a check was used for payment:

1. Select Manual Check.

2. Enter the payment date, bank account, and last four digits of the check.

3. Click Mark as Paid.

4. Bank Account (ACH/Debit Card)

If the payment was made via ACH or debit card:

1. Select Bank Account (ACH/Debit Card).

2. Enter the relevant payment date and account details.

3. Click Mark as Paid.

5. Advanced Settlement (Inter-company Payments)

Used for internal company settlements without making an actual payment:

1. Select Advanced Settlement.

2. In the dialogue box, enter the settlement date (typically the last day of the month).

3. Choose the corresponding Balance Sheet Payable Account for the other business.

4. Click Confirm to complete the settlement.

6. Vendor Credit

Used when applying a vendor credit to settle the invoice:

1. Select Vendor Credit.

2. This will generate a $0 bill payment, reflecting that the invoice was cleared using existing credit.

D. How to Mark an Invoice as Do Not Pay?

1. Go to your Docyt login page and sign in to your account.

2. Click on the Expense module, select Bill Pay>Invoice Queue.

3. Check the box next to each invoice you want to mark as Do Not Pay.

4. Click the "Do Not Pay" option in the top menu bar, which will appear when the user selects the invoice.

5. When prompted, click Confirm to finalize your selection.

When to mark an Invoice as Do not Pay?

1. Duplicate Invoices: Avoid redundant payments by flagging duplicate entries.

2. Incorrect Invoices: Prevent payment on invoices with incorrect amounts or details.

3. Disputed Invoices: Pause payment for invoices under dispute with the vendor.

4. Cancelled Orders/Services: Block payment for invoices related to cancelled products or services.