Before you read this article, make sure to read Invoice creation modes.
Please note that closed invoices cannot be reopened. The date on which an invoice is closed will be the invoice date, which cannot be modified.
With Payment invoicing mode enabled, an invoice will be closed automatically after each payment, regardless of the method. This option is recommended for businesses with strict accounting requirements which need to declare income with the same date as the transaction. The invoice will include invoice lines with prices proportional to the amount paid.
To enable the Payment invoicing mode, go to Settings > General Settings > Invoices and select PAYMENT - Create an invoice for each successful payment under Creating invoices.
Let's take the following case as an example. A couple has booked a Surf & Yoga retreat package, including accommodation (7% VAT) and two activities (19%VAT). The required deposit is 25%.
When their deposit is paid, an invoice will be created and closed automatically for the same amount and date.
The invoice table will show prices and taxes proportional to the deposit paid.
When the balance is paid, a new invoice will be closed with the remaining amount. If during the stay the guests decide to book additional services or activities, they will be invoiced when payment is registered for them.
It may happen that the guests decide to cancel an item that has already been invoiced and ask for a refund. Check How to credit an invoice: cancelling products for additional information about removing invoiced items.
With Strict mode enabled, there is a direct relation between invoice lines and payments. This means that when you remove items for a booking that has already been invoiced, you should partially (or fully) refund the payment. If you later add a new item, you must register a new payment to invoice it.