Overdue Invoice

Status

An invoice that has not been paid by its due date.

Detailed Explanation

An invoice becomes overdue when payment isn't received by the specified due date. Overdue invoices can negatively impact cash flow and may incur late fees or interest charges as specified in payment terms. Managing overdue invoices typically involves sending payment reminders, making phone calls, and potentially working with collection agencies or taking legal action. Businesses should have clear policies for handling overdue accounts while maintaining customer relationships.

Examples

  • An invoice with Net 30 terms becomes overdue on day 31
  • The accounting team sends reminders for invoices overdue by 15 days

Related Terms

Invoice Payment Terms Accounts Receivable (AR) Late Fee

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