What happens to an invoice in the system if it is not paid by the due date?

When an invoice is not paid by the due date, it is classified as Overdue. This status indicates that the payment is past the due date and allows the system to implement specific actions related to collections, reminders, or late fees. Marking an invoice as Overdue is essential for both the organization and the customer, as it reflects the customer's current obligation and may trigger additional follow-up processes to ensure payment is received.

The status change to Overdue provides clarity on the financial standing of the account, highlighting which invoices are still outstanding and prompting necessary actions. This classification is crucial in managing cash flow and ensuring that outstanding debts are addressed promptly. Additionally, it aids in the overall financial reporting of accounts receivable.