In billing processes, what does the initial status 'Open' signify?

The initial status 'Open' signifies that the invoice is awaiting payment. When an invoice is created and its status is set to 'Open,' it indicates that the billing process is still in progress and that the payment has not yet been completed. This status allows businesses to track invoices that need to be settled by customers, making it essential for effective cash flow management.

Once the payment is received, the status will change to reflect that the invoice has been paid. The other statuses, such as 'Finalized' or 'Canceled,' indicate different states that the invoice might be in after a payment decision has been made or if there has been a need to void the invoice altogether.