Recording an Invoice That Was Already Paid
Use this when you're recording a charge for which the money has already changed hands, for example a cheque you already deposited, or cash collected in person, and you don't want it to sit as an...
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Use this when you're recording a charge for which the money has already changed hands, for example a cheque you already deposited, or cash collected in person, and you don't want it to sit as an open, unpaid invoice.
- Start creating an invoice as you normally would, with the line items and amount for what was paid.
- In the Journal Entry Preview panel, open the debit-line picker and choose an account from the Cash / Bank group (for example, your operating cash account).
- A banner appears above the journal entry preview: "This invoice will be created as paid. The amount is booked directly to [your chosen account] and no receivable is recorded."
Notice two changes to the invoice summary:
- A Paid badge appears next to the invoice total.
- The Save as Draft button is gone, replaced with a short note: "Paid on creation, so there is no draft to save."
Click Create Paid Invoice to finish.
Why there's no draft option
A draft invoice is, by definition, one that hasn't been posted yet. Since choosing a Cash/Bank account tells URBI the money already arrived, there's nothing left to "draft", the invoice is created paid from the start. That's also why the button disappears rather than just being disabled: it genuinely doesn't apply to this path.
What this looks like in the ledger
Instead of the usual two-step pattern (an invoice that debits Accounts Receivable, followed later by a separate payment that credits it), this path records everything in one journal entry: a debit to the cash account you chose and a credit to the revenue account for the line items on the invoice. No Accounts Receivable line is created, because nothing is owed. A payment record is created alongside the invoice so your payment history stays complete, even though there was no separate payment step.
If you picked the wrong account
While the invoice is still a draft, you can change which account it posts to. Once you've submitted a Cash/Bank invoice it's already paid and posted, so an account correction at that point is a journal entry correction rather than an edit to the invoice itself. See Changing the Account on a Draft Invoice for what's editable and what isn't.