In every business, there will be instances where invoices will not get paid. Either your customers cancelled, went out of business, or for whatever reason, sometimes they just won’t get paid. Instead of deleting the invoices, it is always good practice to keep them for historical purposes. But you probably don’t want the invoices to be open because that assumes you are still waiting for payments. To “close” them out, you can do either one of the following:

  1. You can create a credit memo and apply the credit memo to the invoice. Here’s more info on credit memos: Credit Memos.
  2. If you don’t necessarily want to keep track of credit memos, you can simply void the invoice. There is a checkbox called Is Voided in the invoice, simply check that box and your invoice is as good as “closed”.