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!