vmError: Path wrong to store invoices, folder invoices does not exist
This error is given when updating an order status and results from not setting the path to your invoices directory.
Set up a "Safe Path".
To do this, first create a directory for downloadable files, even if you do not sell downloads. This directory is best placed outside your Joomla root for security, when this is not possible give it some obscure unguessable name, such as wgettyty. Within this create a subdirectory called invoices.
Then in VM Configuration/Templates/Media File Settings against "Safe path " (shown as "Path for Sale" in VM 2.0.2) enter the full server path to your download directory. Do not use a relative path, it will not work.
eg it could be something like home/user/files/ or when the provider does not allow that home/user/public_html/wgettyty/ (I have found that some servers require a leading slash, eg /home/ ). Do not create the /invoices/ directory, VirtueMart will do that for you.
If you don't know the server path look in Joomla 2.5 System Information/Configuration File where the path is shown for tmp_path and for log_path. Just substitute your new directory name for "logs" or "tmp".
This is a security feature to protect the invoices.
Note that on some shared hosts, especially the low cost ones, you will not be able to set or access a directory below web root
If you need instructions with pictures then see http://docs.virtuemart.net/faqs/37-configuration/110-how-to-set-the-safe-path.html