---
title: "Finalizing Draft Invoices"
source_url: https://docs.rapyd.net/en/finalizing-draft-invoices.html
lang: en
---

# Finalizing Draft Invoices

Invoices are initially created with a draft status, and this is the only state in which an invoice can be edited or deleted. Once an invoice is ready to be paid, it should be finalized. This sets its status to open. Subscriptions automatically create draft invoices during each billing cycle. The subscription's `simultaneous_invoice` field determines when the invoice is automatically finalized.

### The Finalize Method

You can finalize an order or a subscription invoice via the Finalize method

Restrictions on Finalized Invoices

After an invoice is finalized, it can no longer be deleted and its final status can be one of the following:

- Paid
- Uncollectible
- Void

### Calculation of Invoice Total

The total amount due under an invoice is calculated as follows:

1. The subtotal is the sum of all invoice lines. An invoice line describes the amount to pay for an `invoice_item` or a `subscription_item`.
2. The subtotal is reduced by the amount of the discounts available to the subscription.
3. The adjusted subtotal is multiplied by the tax rate, which produces the amount of tax due.
4. The total amount due is the sum of the tax and the adjusted subtotal.

The discount is calculated as a percentage or a fixed monetary amount, depending on the settings of the `amount_off` or `percent_off` fields of the `coupon` object.

### Percentage Discount

When the discount is a percentage, the formula is as follows:

**TInvoice = ( (sum(ItemsSubscription) + sum(ItemsInvoice) ) x ( (100 - DPercent) /100) ) x (1 + (RTax / 100) )**

where:

- **TInvoice** is the total due under the invoice.
- **ItemsSubscription** is the charges for all the subscription items.
- **ItemsInvoice** is the charges for all the invoice items.
- **DPercent** is the percentage discount.
- **RTax** is the tax rate as a percentage.

### Fixed Discount

When the discount is a fixed monetary amount, the formula is as follows:

**TInvoice = ( sum(ItemsSubscription) + sum(ItemsInvoice) - DFixed ) x (1 + (RTax / 100) )**

where:

- **TInvoice** is the total due under the invoice.
- **ItemsSubscription** is the charges for all the subscription items.
- **ItemsInvoice** is the charges for all the invoice items.
- **DFixed** is the fixed discount.
- **RTax** is the tax rate as a percentage.