diff --git a/erpnext/accounts/doctype/gl_entry/gl_entry.py b/erpnext/accounts/doctype/gl_entry/gl_entry.py
index fddabcb..5773813 100644
--- a/erpnext/accounts/doctype/gl_entry/gl_entry.py
+++ b/erpnext/accounts/doctype/gl_entry/gl_entry.py
@@ -195,6 +195,7 @@
 	if against_voucher_type in ["Sales Invoice", "Purchase Invoice"]:
 		ref_doc = frappe.get_doc(against_voucher_type, against_voucher)
 		ref_doc.db_set('outstanding_amount', bal)
+		ref_doc.set_status(update=True)
 
 def validate_frozen_account(account, adv_adj=None):
 	frozen_account = frappe.db.get_value("Account", account, "freeze_account")
diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json
index 01e5784..1546857 100755
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json
@@ -2776,6 +2776,35 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "default": "Draft", 
+   "fieldname": "status", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Status", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "\nDraft\nSubmitted\nPaid\nUnpaid\nOverdue\nCancelled", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "posting_time", 
    "fieldtype": "Time", 
    "hidden": 0, 
@@ -3264,7 +3293,7 @@
  "istable": 0, 
  "max_attachments": 0, 
  "menu_index": 0, 
- "modified": "2016-11-03 15:54:34.750548", 
+ "modified": "2016-11-08 11:49:00.752417", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Purchase Invoice", 
diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
index 22de07f..5c2b62c 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
@@ -65,6 +65,7 @@
 		self.validate_fixed_asset()
 		self.validate_fixed_asset_account()
 		self.create_remarks()
+		self.set_status()
 
 	def validate_cash(self):
 		if not self.cash_bank_account and flt(self.paid_amount):
@@ -596,6 +597,7 @@
 		self.make_gl_entries_on_cancel()
 		self.update_project()
 		self.update_fixed_asset()
+		frappe.db.set(self, 'status', 'Cancelled')
 
 	def update_project(self):
 		project_list = []
diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice.json b/erpnext/accounts/doctype/sales_invoice/sales_invoice.json
index ddbd648..b4747ce 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice.json
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice.json
@@ -3070,6 +3070,35 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "default": "Draft", 
+   "fieldname": "status", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 1, 
+   "in_list_view": 0, 
+   "label": "Status", 
+   "length": 0, 
+   "no_copy": 1, 
+   "options": "\nDraft\nSubmitted\nPaid\nUnpaid\nOverdue\nCancelled", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 1, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "source", 
    "fieldtype": "Link", 
    "hidden": 0, 
@@ -4010,7 +4039,7 @@
  "istable": 0, 
  "max_attachments": 0, 
  "menu_index": 0, 
- "modified": "2016-11-03 15:55:41.249414", 
+ "modified": "2016-11-08 11:47:43.494612", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Sales Invoice", 
diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
index 521b0eb..4e0a6b4 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
@@ -86,6 +86,7 @@
 		self.update_packing_list()
 		self.set_billing_hours_and_amount()
 		self.update_timesheet_billing_for_project()
+		self.set_status()
 
 	def before_save(self):
 		set_account_for_mode_of_payment(self)
@@ -158,6 +159,7 @@
 			self.update_stock_ledger()
 
 		self.make_gl_entries_on_cancel()
+		frappe.db.set(self, 'status', 'Cancelled')
 
 	def update_status_updater_args(self):
 		if cint(self.update_stock):
diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice_list.js b/erpnext/accounts/doctype/sales_invoice/sales_invoice_list.js
index 55e8b21..5e21d7a 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice_list.js
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice_list.js
@@ -10,9 +10,9 @@
 			return [__("Return"), "darkgrey", "is_return,=,Yes"];
 		} else if(flt(doc.outstanding_amount)==0) {
 			return [__("Paid"), "green", "outstanding_amount,=,0"]
-		} else if (flt(doc.outstanding_amount) > 0 && doc.due_date > frappe.datetime.get_today()) {
+		} else if (flt(doc.outstanding_amount) > 0 && doc.due_date >= frappe.datetime.get_today()) {
 			return [__("Unpaid"), "orange", "outstanding_amount,>,0|due_date,>,Today"]
-		} else if (flt(doc.outstanding_amount) > 0 && doc.due_date <= frappe.datetime.get_today()) {
+		} else if (flt(doc.outstanding_amount) > 0 && doc.due_date < frappe.datetime.get_today()) {
 			return [__("Overdue"), "red", "outstanding_amount,>,0|due_date,<=,Today"]
 		}
 	},
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 3d2f16b..b436670 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -720,4 +720,13 @@
 					and docstatus = 1 and unallocated_amount > 0
 			""".format(party_account_field), (party_account, party_type, party, payment_type), as_dict=1)
 
-	return list(payment_entries_against_order) + list(unallocated_payment_entries)
\ No newline at end of file
+	return list(payment_entries_against_order) + list(unallocated_payment_entries)
+
+def update_invoice_status():
+	# Daily update the status of the invoices
+
+	frappe.db.sql(""" update `tabSales Invoice` set status = 'Overdue' 
+		where due_date < CURDATE() and docstatus = 1 and outstanding_amount > 0""")
+
+	frappe.db.sql(""" update `tabPurchase Invoice` set status = 'Overdue' 
+		where due_date < CURDATE() and docstatus = 1 and outstanding_amount > 0""")
\ No newline at end of file
diff --git a/erpnext/controllers/status_updater.py b/erpnext/controllers/status_updater.py
index 157c385..cb783b4 100644
--- a/erpnext/controllers/status_updater.py
+++ b/erpnext/controllers/status_updater.py
@@ -3,7 +3,7 @@
 
 from __future__ import unicode_literals
 import frappe
-from frappe.utils import flt, comma_or
+from frappe.utils import flt, comma_or, nowdate, getdate
 from frappe import _
 from frappe.model.document import Document
 from erpnext.accounts.party_status import notify_status
@@ -41,6 +41,22 @@
 		["Cancelled", "eval:self.docstatus==2"],
 		["Closed", "eval:self.status=='Closed'"],
 	],
+	"Sales Invoice": [
+		["Draft", None],
+		["Submitted", "eval:self.docstatus==1"],
+		["Paid", "eval:self.outstanding_amount==0 and self.docstatus==1"],
+		["Unpaid", "eval:self.outstanding_amount > 0 and getdate(self.due_date) >= getdate(nowdate()) and self.docstatus==1"],
+		["Overdue", "eval:self.outstanding_amount > 0 and getdate(self.due_date) < getdate(nowdate()) and self.docstatus==1"],
+		["Cancelled", "eval:self.docstatus==2"],
+	],
+	"Purchase Invoice": [
+		["Draft", None],
+		["Submitted", "eval:self.docstatus==1"],
+		["Paid", "eval:self.outstanding_amount==0 and self.docstatus==1"],
+		["Unpaid", "eval:self.outstanding_amount > 0 and getdate(self.due_date) >= getdate(nowdate()) and self.docstatus==1"],
+		["Overdue", "eval:self.outstanding_amount > 0 and getdate(self.due_date) < getdate(nowdate()) and self.docstatus==1"],
+		["Cancelled", "eval:self.docstatus==2"],
+	],
 	"Purchase Order": [
 		["Draft", None],
 		["To Receive and Bill", "eval:self.per_received < 100 and self.per_billed < 100 and self.docstatus == 1"],
diff --git a/erpnext/hooks.py b/erpnext/hooks.py
index cef798b..90c7f51 100644
--- a/erpnext/hooks.py
+++ b/erpnext/hooks.py
@@ -189,6 +189,7 @@
 		"erpnext.stock.reorder_item.reorder_item",
 		"erpnext.setup.doctype.email_digest.email_digest.send",
 		"erpnext.support.doctype.issue.issue.auto_close_tickets",
+		"erpnext.controllers.accounts_controller.update_invoice_status",
 		"erpnext.accounts.doctype.fiscal_year.fiscal_year.auto_create_fiscal_year",
 		"erpnext.hr.doctype.employee.employee.send_birthday_reminders",
 		"erpnext.projects.doctype.task.task.set_tasks_as_overdue",
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index b53bbc6..57dbc59 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -346,3 +346,4 @@
 erpnext.patches.v7_0.repost_gle_for_pi_with_update_stock #2016-11-01
 erpnext.patches.v7_1.add_account_user_role_for_timesheet
 erpnext.patches.v7_0.set_base_amount_in_invoice_payment_table
+erpnext.patches.v7_1.update_invoice_status
\ No newline at end of file
diff --git a/erpnext/patches/v7_1/update_invoice_status.py b/erpnext/patches/v7_1/update_invoice_status.py
new file mode 100644
index 0000000..5a2d013
--- /dev/null
+++ b/erpnext/patches/v7_1/update_invoice_status.py
@@ -0,0 +1,30 @@
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+
+def execute():
+	frappe.reload_doc('accounts', 'doctype', 'sales_invoice')
+	frappe.reload_doc('accounts', 'doctype', 'purchase_invoice')
+
+	frappe.db.sql(""" 
+		update 
+			`tabPurchase Invoice` 
+		set 
+			status = (Case When outstanding_amount = 0 and docstatus = 1 then 'Paid'
+			when due_date < CURDATE() and outstanding_amount > 0 and docstatus =1 then 'Overdue'
+			when due_date >= CURDATE() and outstanding_amount > 0 and docstatus =1 then 'Unpaid'
+			when docstatus = 2 then 'Cancelled'
+			else 'Draft'
+		End)""")
+
+	frappe.db.sql(""" 
+		update 
+			`tabSales Invoice` 
+		set status = (Case When outstanding_amount = 0 and docstatus = 1 then 'Paid'
+			when due_date < CURDATE() and outstanding_amount > 0 and docstatus =1 then 'Overdue'
+			when due_date >= CURDATE() and outstanding_amount > 0 and docstatus =1 then 'Unpaid'
+			when docstatus = 2 then 'Cancelled'
+			else 'Draft'
+		End)""")
\ No newline at end of file