Invoices & Settlements
A complete guide to buyer invoices and consignor settlements — how each works, the correct sequence, common workflows, and how to resolve the most frequent problems.
Overview — How Invoices and Settlements Work Together
Invoices face buyers. Settlements face consignors. They are separate documents that describe the same sale from two different perspectives.
- Generated after the auction closes
- Visible to buyers once sent (not before)
- Triggers automated payment reminders
- Collected via card, check, wire, or ACH
- Generated after invoices are paid (recommended)
- Visible to consignors once sent (if Consignor Login enabled)
- Must be manually sent — nothing is automatic
- Paid by check, wire, ACH, or via QuickBooks
Auction ends — all lots sold or passed
Import third-party winners (LA / INV) if applicable
Generate invoices — review in New status
Send invoices — collect payment
Generate settlements — review in New status
Send settlements — record payouts
Invoice Lifecycle — Statuses Explained
Every invoice moves through a defined set of statuses. Understanding each status is essential — especially which statuses are visible to buyers and which are not.
| Status | Visible to Buyer? | Editable? | What it means |
|---|---|---|---|
| New | ❌ No — hidden | ✅ Fully editable | Your quality-control window. Invoice has been generated but not yet sent. The buyer cannot see it. Review it carefully before sending — check hammer prices, buyer's premium, lot assignments, and any added fees. Correct errors here while you still can. |
| Sent | ✅ Yes | ⚠️ Limited | Invoice has been emailed to the buyer. They can now view it and pay online. Automated payment reminders begin. Limited editing is still possible — adding/removing lots or fees requires care as the buyer may already have seen the invoice. |
| Partially Paid | ✅ Yes | ⚠️ Limited | A partial payment has been recorded against the invoice. An outstanding balance remains. Reminders continue until the balance reaches zero. |
| Paid | ✅ Yes | ❌ No (refund only) | Invoice is fully settled. No further action required. If a refund is needed, it can be initiated from the paid invoice but will move the invoice back to a refunded state. |
When an invoice is deleted, it is removed from the active Invoices list but a record of it is permanently retained in the Invoice Journal Report (Reports → Invoice Journal). This means you always have an auditable history of all financial activity, even for invoices that were generated and subsequently deleted. There is no Void status in Bidsquare.
Once an invoice is Sent, editing becomes limited and the buyer has already received notification. Always review invoices in New status before sending. Check: correct lots, correct hammer prices, correct buyer's premium, no missing fees. Two minutes of review in New status prevents significant post-send corrections.
Working with Invoices
Generating, editing, sending, and collecting payment on buyer invoices.
Items from that auction only: Auctions → [auction] → Invoices tab → Generate New Invoice. Generates invoices for all buyers in that specific event.
Ideal for multi-day auctions: Sales → Invoices → Generate New Invoice. Combines items from multiple auctions into a single invoice per buyer — perfect for buyers who won lots across several days of the same sale.
Users → [user profile] → Invoices tab → Generate Invoice. Creates an invoice for just that buyer, straight from their profile — ideal for fast bidder checkout on auction day.
- BP is calculated automatically based on your platform settings
- Sales tax is applied based on the buyer's shipping address
- Adjust buyer's premium globally or per lot
- Add fees: shipping, storage, insurance, credit card surcharge
- Add a lot: search by lot number to add a missed lot
- Remove a lot: the lot reverts to Unsold — always select Re-List
- Add invoice notes visible to the buyer
- Add internal notes visible to staff only
- Automated payment reminders begin after sending
- Reminders stop when the balance reaches zero
- Batch send: select all New invoices → Send Invoice
- Charge Card: processes through your gateway immediately
- Record Payment: manually record check, wire, cash, ACH
- Batch Charge: Batch Actions → Charge Cards (Sent invoices)
- Failed charges are flagged — follow up individually
- Partial payment: record an amount less than the total; status → Partially Paid
- Credit card refunds process through your gateway
- If the lot's settlement has already been paid, you must reconcile with the consignor separately — the refund does not auto-update a paid settlement
- Always select Re-List when deleting — this marks all lots as Unsold and makes them available for re-listing or re-sale
- Deleting without Re-List leaves lots in a Sold state with no buyer — they cannot be invoiced or re-listed
- If an invoice must be undone after payment, use Refund first, then delete
If a buyer won additional lots that weren't included in their original invoice, use Add New Sold Lot within the invoice edit screen to add them. This keeps all a buyer's purchases on a single invoice rather than creating separate invoices for the same buyer — which simplifies payment collection and record-keeping.
Settlement Lifecycle — Statuses Explained
Settlements follow a simple three-status lifecycle: New → Sent → Paid. New settlements are hidden from consignors; Sent makes the statement visible to them.
| Status | Visible to Consignor? | Editable? | What it means |
|---|---|---|---|
| New | ❌ No — hidden | ✅ Fully editable | Your review window. Settlement has been generated but not yet sent. The consignor cannot see it. Review for accuracy — verify hammer prices, commission calculations, charges, and the settlement indicators. Edit or regenerate as needed before sending. |
| Sent | ✅ Yes (if Consignor Login enabled) | ⚠️ Limited | Settlement statement has been sent to the consignor. If Consignor Login is enabled, they can view and download it from their My Account area. Payout is now expected. |
| Paid | ✅ Yes | ❌ No | Payout has been recorded. The settlement is fully closed. The consignor can see the payout confirmation in their portal. |
This is the most common settlement mistake. If you generate a settlement and a buyer subsequently pays their invoice, the settlement amount does not recalculate. You must regenerate the settlement or adjust it manually. Best practice: generate settlements only after the majority of buyer invoices are paid and collected.
Working with Settlements
Generating, reviewing, editing, sending, and paying out consignor settlements.
Auctions → [auction] → Settlements tab → Generate. Produces a settlement for every consignor with lots in that sale.
Consignments → Consignors → [consignor] → Settlements → Generate. For a single consignor on their own timeline.
Consignments → Settlements → Generate → select multiple auctions. Combines a consignor's lots across several sales into one statement.
- Uncheck Include Unpaid Items for the cleanest result
- Check Include Unpaid Items + uncheck Calculate Commission on Unpaid to show all lots but withhold commission on uncollected amounts
- Verify each lot's hammer price and commission calculation
- Check the settlement indicators (see below) for unpaid invoices, below-reserve lots, and unsold items
- Add or remove lots from the settlement
- Override commission on individual lots if agreed
- Add deductions (restoration, authentication, photography charges)
- Add a consignor-facing note explaining any adjustments
- Include expected payout timing in your settlement template: "Payment within X business days of collection"
- Once sent, the consignor has visibility — communicate any subsequent changes directly
- Enter amount, method (check, wire, ACH), date, and reference number — status moves to Paid
- Print consignor checks: select multiple settlements → Batch Actions → Print Checks. Generates formatted check output for your check stock. Record payout against each settlement after printing to mark them Paid.
- QuickBooks Online sync (paid add-on): the QuickBooks integration can sync both invoices and settlements automatically. Hammer prices, buyer's premium, commissions, charges, and payouts are mapped to your QuickBooks chart of accounts. Available separately for invoice syncing, settlement syncing, or both. Contact support@bidsquare.com to enable.
- Export Settlement Journal (Reports → Settlement Journal) after each cycle as your accounting archive — remains available even if using the QuickBooks integration
Common Workflows
The most frequent scenarios your team will encounter. Four step-by-step sequences covering the most common post-sale situations — standard web-only sales, third-party platform reconciliation, multi-auction settlements, and mid-process lot removals.
Common Problems & How to Resolve Them
The most frequent invoice and settlement issues — what causes them and exactly what to do.
Quick answers to the most common support queries — each tagged self-service or support:
- How do I handle invoices for non-paying bidders?
- I accidentally marked an invoice as paid — how do I reverse it?
- My settlement shows items as unpaid even though I've sent the invoices
- A buyer paid after I generated a settlement — do I need to redo it?
- Do I invoice LiveAuctioneers / Invaluable bidders in Bidsquare?
- What do the color-coded icons on the settlements list mean?
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