Open does not mean overdue
An invoice can remain open during its agreed payment period. It becomes past due when an unpaid amount remains after the applicable due date. Use the contract and recorded due date to determine timing.
Hypothetical example: A $1,000 invoice due November 1 has a $400 applied payment on October 20. Its $600 remaining balance is open but not yet overdue.
What changes the open balance
Applied receipts, valid credits, adjustments, and approved settlement entries can reduce the balance. A payment promise does not reduce it. Funds received without a reliable invoice match may remain unapplied until reconciliation.
A disputed invoice may also remain open while the issue is investigated. Track the disputed portion separately and apply required collection holds.
Managing open invoices
Review customer identity, invoice reference, due date, remaining amount, and payment instructions before follow-up. Confirm recent receipts to avoid duplicate requests.
Separate operational closure from legal forgiveness. A write-off or system status alone does not determine whether an obligation has been released. Open balances are potential cash inflows, not guaranteed receipts.