When you are the sender and the funds have landed, you confirm payment from the invoice detail page in your dashboard. This is the action that actually changes the invoice status to paid and keeps your dashboard totals clean.
Step 1: Open the invoice
From your dashboard, open the invoice you want to settle. You are now on its detail page.
Step 2: Find the status actions
Near the top of the page is the status bar with the settlement actions. It is hidden for drafts and quotes, which have nothing to settle.
Step 3: Check for a reported-paid note
If your recipient told you they paid, you will see a note here reading The recipient reported paying (with the method, if they gave one) next to the button. That is a heads-up only: the invoice is not paid until you confirm it.
Step 4: Mark it paid
Click the Mark as paid button, then confirm in the dialog. The dashboard will show the invoice as paid as of today.
Step 5: Undo if needed
If you did this by mistake, the same area now shows an Undo mark paid link, which moves the invoice back to Sent and clears the paid date.