> For clean Markdown of any page, append .md to the page URL.
> For a complete documentation index, see https://docs.mercoa.com/embedded-ap-ar/guides/accounts-receivable/invoices/llms.txt.
> For AI client integration (Claude Code, Cursor, etc.), connect to the MCP server at https://docs.mercoa.com/_mcp/server.

## [API Reference](/api-reference/invoice/create)

# Invoice Lifecycle

Invoices in AR follow a linear lifecycle through the following states:

* Draft
* Awaiting Payment
* Payment processing
* Paid

# 1. Creating a Draft

An invoice object can be created via the React component provided in Mercoa’s component library, or via the Mercoa API.

When an invoice is created, it's assigned the `DRAFT` state. In this state, a vendor can:

* Edit and save the invoice
* Preview the invoice PDF and payor-facing payment portal
* Send the invoice to proceed to the next stage

## What must be set to get into this state

* Invoice Date
* Due Date
* Total Amount

# 2. Sending the Invoice and Awaiting Payment

When a vendor sends the invoice to their customer, it's assigned the `AWAITING_PAYMENT` state.

Upon the invoice reaching this state, Mercoa will send an email to the specified customer with a payment portal that the customer can use to pay the invoice.

## What must be set to get into this state

* Customer
* Name
* Email
* Invoice Date
* Due Date
* Invoice Number
* Total Amount
* Payment Destination Method

## Optional Fields

These fields exist on the invoice object as well, but aren't required to send an invoice.

* Payment Source Method
  * The vendor can provide the payer’s bank details if known, but the payer can use the Mercoa payment portal to input their own bank details.
* Internal Notes
  * Vendors can optionally store unstructured text in a note-to-self field.

# Payment Processing

After the customer pays the invoice via the payment portal, the invoice is assigned the `PAYMENT_PROCESSING` state. The invoice will remain in this state until the funds settle via ACH.

# Paid

The invoice reaches this state once the vendor receives the invoice amount.