House Account Invoices – Cancelling & Reissuing Causing Confusion

[IzAK]

Hi everyone,

I’m running into an issue with the way House Accounts handle invoices in Square, and I’m wondering if others are seeing the same thing.

Right now, when we issue a new invoice under a House Account, Square cancels the prior unpaid invoice and reissues the entire balance in a new one. On our end it looks like a rolling balance, but on the customer side it’s creating a lot of confusion:

Customers who already paid see their invoice marked as “canceled.”

They think their payment didn’t apply, even though it did.

This has caused disputes and makes reconciliation harder on both sides.

From an accounting perspective, this doesn’t align with standard AR practices. Invoices should remain permanent records until they’re paid, credited, or written off. Canceling them and rolling the balance into a new invoice breaks the audit trail and makes compliance tricky for industries where invoice integrity is critical.

Question for the community/support:

Is there a way to stop invoices from being canceled and reissued under House Accounts?

Could Square consider a “balance forward” or “statement” option that keeps invoices intact but still shows the running balance?

This seems like it would reduce customer confusion and keep things aligned with standard invoicing practices.

Thanks in advance for any insights or workarounds!

[Summer2024 · Accepted solution]

Hi, @IzAK ! 😃

To answer your question:

• There is no built-in setting in Square that prevents the cancelation-and-merge behavior under House Accounts

• You can’t disable the rolling invoice logic or enforce invoice permanence within House Account workflows

I am going to outline some workarounds below. I hope they help. 

1. Avoid Using House Accounts for Formal Invoicing

Instead of issuing invoices through the House Account feature:

• Issue individual invoices manually using the Invoices tool

• Track the customer’s balance using Customer Directory notes, or a separate AR tracking sheet

• This way, each invoice stands on its own, and payments apply cleanly

2. Use “Statements” Instead of Invoices

While Square doesn’t offer full “statement billing” yet, you can:

• Export transaction history from the Customer Directory

• Or generate a PDF summary of all invoices and payments (useful for monthly statements)

Then send this outside of Square as a monthly balance summary, while keeping individual invoices intact.

3. Communicate Clearly with Customers

• Add notes to each invoice explaining: "Your payment of $X was received on [date]. This invoice reflects your updated balance."

• Or send a separate email/SMS when merging occurs to clarify that no payment has been lost

I know it's not a super automated workaround, but I wanted to at least provide you with something. I hope this helps!

[Jason417]

This wasn't always an issue.  Square used to have a feature where you could invoice directly from a "ticket".  I would charge items to a ticket throughout the month, then send them an invoice directly from that ticket.  The ticket went away, and the new invoice was sent.    If I started a new ticket, I could invoice for the new charges on an additional invoice without any disruption, cancellation, or merging of the first one.  However, that feature went away in 2025 without any advance notice to customers.   I was told that using house accounts was the work-around.  However, I'm experiencing the same frustrations of this merging/canceling of invoices when using house accounts. 

I, too, am experiencing the same frustrations with invoicing from house accounts.   My customers mail a check for invoices which can take a few weeks to get to me.  Meanwhile, they have more charges to their house account, and when I send a new invoice, it cancels the previous invoice and rolls the outstanding balance into the new one.   Often, my customer is processing a check payment for the first invoice, but then receive a cancelation of that invoice with a new one.  They don't know what they owe, and it looks like I don't know what I'm doing as a business owner.  

These proposed "solutions" listed here do not work in my situation.  I have hundreds of line items on a customer's house account each month, which I need to send an invoice for.  I will not manually enter each of these items again on an invoice for each customer when they are listed on the house account.

I have called Square multiple times over the last 6 months trying to get the previous feature of invoicing directly from tickets reinstated.  Nobody can tell me if this ever will be reinstated, and they cannot provide a way to turn off the automatic cancellation/merging of invoices sent from house accounts.  Ridiculous.  I'm at the point that I'm looking for a new POS system, and those I speak to at Square don't seem to care.  

[Skbabu]

Invoice

MagnusBilling

[Skbabu]

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@IzAK wrote:

Hi everyone,

I’m running into an issue with the way House Accounts handle invoices in Square, and I’m wondering if others are seeing the same thing.

Right now, when we issue a new invoice under a House Account, Square cancels the prior unpaid invoice and reissues the entire balance in a new one. On our end it looks like a rolling balance, but on the customer side it’s creating a lot of confusion:

Customers who already paid see their invoice marked as “canceled.”

They think their payment didn’t apply, even though it did.

This has caused disputes and makes reconciliation harder on both sides.

From an accounting perspective, this doesn’t align with standard AR practices. Invoices should remain permanent records until they’re paid, credited, or written off. Canceling them and rolling the balance into a new invoice breaks the audit trail and makes compliance tricky for industries where invoice integrity is critical.

Question for the community/support:

Is there a way to stop invoices from being canceled and reissued under House Accounts?

Could Square consider a “balance forward” or “statement” option that keeps invoices intact but still shows the running balance?

This seems like it would reduce customer confusion and keep things aligned with standard invoicing practices.

Thanks in advance for any insights or workarounds!

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