---
title: "Invoice Types and States"
slug: "understanding-invoice-types"
updated: 2026-07-07T08:33:37Z
published: 2026-07-07T08:33:37Z
canonical: "help.frisbii.com/understanding-invoice-types"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.frisbii.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Invoice Types and States

## What are the different types of invoices available in Frisbii Billing and Pay?

Frisbii Billing and Pay offers different types of invoices to cater to various billing scenarios.

---

## Subscription Invoices

Subscription invoices manage recurring payments for your services. They ensure accurate and timely billing while maintaining comprehensive transaction records and providing billing transparency to your customers.

There are three subtypes of subscription invoices:

- **Subscription**: Standard recurring billing for active subscriptions
- **Subscription one-time**: A single charge associated with a subscription
- **Subscription one-time instant**: An immediate one-time charge related to a subscription

These invoices can include customized service descriptions, payment terms, and applicable taxes, helping customers understand their charges and reducing billing disputes. Automated reminders can inform customers of upcoming payments, improving satisfaction and reducing late payments.

## Customer Invoices

Customer invoices are standalone, one-time invoices that are not linked to any subscription. They provide flexibility for billing additional purchases or services outside of regular subscription cycles. Customer invoices are compliant accounting invoices, creating PDFs and sending out emails to customers.

Customer invoices can be settled by:

- using a new payment method
- using an existing payment method
- manually handling the settlement

These invoices are ideal for ad-hoc billing scenarios where subscription-based billing is not appropriate.

## Charge Invoices

> [!WARNING]
> PAY merchants only
> 
> Charge invoices are available exclusively for PAY merchants.

Charge invoices are created through a payment. Charges are a combination of an invoice and a payment transaction. These are **not compliant** accounting invoices but rather transaction records. They do not generate invoice PDF or send out emails.

Charge invoices can be created for:

- one-time purchases
- recurring payments using an already existing payment method

---

## Subscription Invoice States

- **CREATED** - Placeholder state. Subscription invoices use this state for pending subscriptions not activated yet. This is accounting wise not an invoice yet, **but a DRAFT**.
- **UNFINALIZED** - An unfinalized invoice is created due to a defined billing delay. No accounting invoice created yet.
- **PENDING** - A pending invoice is awaiting processing, or in processing and failing but within grace period.
- **DUNNING** - Invoice has entered a dunning state because payment fails, either because of failing payment method or no payment method, and grace period has expired.
- **FAILED** - Dunning for subscription invoice has failed.
- **CANCELED** - An non-paid invoice can be canceled.
- **SETTLED** - Invoice has been paid. Refunds can be made on a settled invoice.

### How does the status of a subscription invoice change?

![](https://cdn.document360.io/b84e1b5d-2ba6-4465-8c62-fb45a2f31314/Images/Documentation/image-KJGD16S4.png)

| **FROM** | **TO** | **CAUSE** |
| --- | --- | --- |
| - | CREATED | [Pending subscription](/frisbii/docs/subscription-states#🟡-pending) was created with invoice to be paid at activation. |
| - | PENDING | - Invoice is created automatically when subscription renews - Invoice is created when active subscription is created and if billing period starts immediately - Invoice created on demand |
| CREATED | UNFINALIZED | Billing delay is defined within plan settings. Manual order lines can be added and deleted. |
| UNFINALIZED | PENDING | When billing delay is due, the invoice changes to pending. |
| CREATED | PENDING | Pending subscription is activated |
| CANCELED | PENDING | Canceled invoice is re-activated via Admin or API |
| FAILED | PENDING | Failed invoice is re-activated via Admin or API |
| PENDING | DUNNING | Pending invoice entering dunning because of no payment method or failing payment method |
| PENDING | FAILED | - No dunning configured and payment method failing - Failing forced in Admin or via [API](https://docs.frisbii.com/reference/failinvoice) |
| DUNNING | FAILED | - Dunning process was not successful - Failing forced in in Admin or via [API](https://docs.frisbii.com/reference/failinvoice) |
| PENDING | SETTLED | - Invoice is successfully paid - Settled in [Admin](/frisbii/docs/settled-invoice) or [through API](https://docs.frisbii.com/reference/settle) |
| DUNNING | SETTLED | - Invoice is successfully paid - Settled in [Admin](/frisbii/docs/settled-invoice) or [through API](https://docs.frisbii.com/reference/settle) |
| UNFINALIZED | CANCELED | Cancel in Admin or via API |
| PENDING | CANCELED | Cancel in Admin or via API |
| SETTLED | SETTLED | Refund is performed on settled invoice |
| DUNNING | CANCELED | Cancel in Admin or via API |
| FAILED | CANCELED | Cancel in Admin or via API |
| SETTLED | PENDING | Settled invoice goes back into pending due to SEPA chargeback |

---

## Customer Invoice States

- **PENDING** - The invoice is in processing or awaiting payment confirmation.
- **AUTHORIZED** - Payment has been authorized but not yet settled. Funds are reserved for later capture.
- **SETTLED** - The invoice has been successfully paid.
- **CANCELED** - The invoice has been canceled and will not be processed.
- **FAILED** - The payment attempt for the invoice has failed.

### How does the status of a customer invoice change?

![](https://cdn.document360.io/b84e1b5d-2ba6-4465-8c62-fb45a2f31314/Images/Documentation/image-AB69CKLU.png)

| FROM | TO | CAUSE |
| --- | --- | --- |
| - | PENDING | Customer invoice was created |
| PENDING | AUTHORIZED | Asynchronous payment of charge without instant settle |
| AUTHORIZED | SETTLED | Settle of authorized invoice |
| PENDING | FAILED | Asynchronous payment without instant settle |
| FAILED | PENDING | Failed invoice re-activated through Admin or API |
| PENDING | CANCELED | Unpaid invoice was canceled |
| SETTLED | SETTLED | Refund on settled invoice |

---

## Charge Invoice States

> [!WARNING]
> **MIT** - Merchant Initiated Transaction - Merchant i.e You
> 
> **CIT** - Customer Initiated Transaction - Customer i.e Your Customer

- **CREATED** - A charge invoice has been prepared in a created state for payment in the checkout. A charge invoice is created when a charge session is created, if the session is not for an existing charge.
- **PENDING** - A Merchant Initiated Transaction (MIT) payment is made for an asynchronous payment type like MobilePay Subscriptions. The result of the payment is not known instantly. Result can be delivered by webhook, or polling can be used.
- **AUTHORIZED** - A payment without instant settle was successful. Money has been reserved for potential later settlement.
- **FAILED** - A payment has failed. Re-attempts can be made on the failed charge invoice.
- **CANCELED** - A non-paid invoice can be canceled.
- **SETTLED** - Charge invoice has been settled. Refunds can be performed on a settled charge.

### How does the status of a charge invoice change?

![](https://cdn.document360.io/b84e1b5d-2ba6-4465-8c62-fb45a2f31314/Images/Documentation/image-O9Z77VTC.png)

| **FROM** | **TO** | **CAUSE** |
| --- | --- | --- |
| - | CREATED | Invoice is prepared when creating a charge session. |
| - | PENDING | MIT creates a charge for an asynchronous payment method where the result of the charge is not known instantly. |
| - | AUTHORIZED | MIT creates charge without instant settle |
| CREATED | AUTHORIZED | CIT payment of charge in checkout without instant settle |
| PENDING | SETTLED | Asynchronous payment of charge without instant settle |
| - | FAILED | MIT creates charge with failed payment |
| CREATED | FAILED | CIT payment of charge failed |
| PENDING | FAILED | Asynchronous payment without instant settle failed |
| AUTHORIZED | FAILED | Settle of authorization with hard decline where settle can never succeed |
| FAILED | FAILED | Failed CIT or MIT payment re-attempt |
| - | SETTLED | MIT or CIT creates charge with instant settle |
| - | AUTHORIZED | MIT or CIT charge without instant settle |
| CREATED | SETTLED | CIT payment of charge in checkout with instant settle |
| PENDING | SETTLED | Asynchronous payment of charge with instant settle |
| AUTHORIZED | SETTLED | Settle of authorized charge |
| SETTLED | SETTLED | Refund on settled invoice |
| CREATED | CANCELED | Cancellation of a created charge |
| AUTHORIZED | CANCELED | Cancellation of an authorized charge. Release of reserved funds will be attempted. |
| FAILED | CANCELED | Cancellation of a failed charge |