Invoice Lifecycle¶

Models the lifecycle of a commercial Invoice (both supplier/purchase invoices and customer/sales invoices) from creation through approval, payment, and archiving. Covers dispute handling and credit note issuance.

Object: invoice · States: 9 · Transitions: 11

State Diagram¶

flowchart LR

    %% ── classDef palette ─────────────────────────────────────
    classDef stInit  fill:#0d9488,stroke:#0f766e,color:#fff,font-weight:bold
    classDef stNorm  fill:#3b82f6,stroke:#2563eb,color:#fff
    classDef stOk    fill:#16a34a,stroke:#15803d,color:#fff,font-weight:bold
    classDef stFail  fill:#dc2626,stroke:#b91c1c,color:#fff,font-weight:bold
    classDef stHold  fill:#d97706,stroke:#b45309,color:#fff

    %% ── nodes ───────────────────────────────────────────────
    draft(["Draft"])
    issued["Issued"]
    under_review["Under Review"]
    approved["Approved"]
    partially_paid["Partially Paid"]
    paid[["Paid"]]
    disputed["Disputed"]
    credit_noted["Credit Noted"]
    cancelled[["Cancelled"]]

    %% ── transitions ─────────────────────────────────
    draft -->|"payment-captured"| issued
    issued -->|"payment-captured"| under_review
    under_review -->|"payment-captured"| approved
    under_review -->|"payment-refunded"| disputed
    approved -->|"payment-captured"| partially_paid
    approved -->|"payment-settled"| paid
    partially_paid -->|"payment-settled"| paid
    disputed -->|"payment-captured"| approved
    disputed -->|"payment-refunded"| credit_noted
    credit_noted -->|"payment-settled"| paid
    draft -->|"order-cancelled"| cancelled

    %% ── class assignments ───────────────────────────
    class draft stInit
    class issued,under_review,approved,partially_paid,disputed,credit_noted stNorm
    class paid stOk
    class cancelled stFail

States¶

State	Label	Description	Initial	Terminal
`draft`	Draft	Invoice created but not yet issued or sent. May be modified.	✓
`issued`	Issued	Invoice sent to recipient. Payment terms clock started.
`under-review`	Under Review	Invoice received by payee and being validated against PO/GR (three-way match).
`approved`	Approved	Invoice validated and approved for payment. In payment queue.
`partially-paid`	Partially Paid	Partial payment received or made. Remaining balance outstanding.
`paid`	Paid	Invoice fully settled. Accounting entry closed.		✓
`disputed`	Disputed	Invoice contested by payer (price variance, missing goods, quality issue). Payment on hold pending resolution.

`credit-noted`	Credit Noted	Credit note issued to offset invoice amount. Net balance adjusted.
`cancelled`	Cancelled	Invoice voided before payment (e.g. order cancelled, error corrected).		✓

Transitions¶

From	To	Trigger	Guards
`draft`	`issued`	`payment-captured`	All mandatory fields complete; Tax calculation applied
`issued`	`under-review`	`payment-captured`	Invoice received by accounts payable; Three-way match process initiated
`under-review`	`approved`	`payment-captured`	PO, GR, and invoice quantities and prices match within tolerance
`under-review`	`disputed`	`payment-refunded`	Variance found beyond tolerance; Dispute reason documented
`approved`	`partially-paid`	`payment-captured`	Payment amount less than invoice total
`approved`	`paid`	`payment-settled`	Payment amount equals invoice total
`partially-paid`	`paid`	`payment-settled`	Remaining balance settled
`disputed`	`approved`	`payment-captured`	Dispute resolved (price adjusted or credit note agreed)
`disputed`	`credit-noted`	`payment-refunded`	Supplier issues credit note for disputed amount
`credit-noted`	`paid`	`payment-settled`	Net amount after credit note settled
`draft`	`cancelled`	`order-cancelled`	Invoice not yet issued; Corresponding order cancelled