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Discount at the time of payment In Odoo

Discount at the time of payment In Odoo
Author

AdhithAug. 31, 2019

How to manage discount at the time of payment in Odoo invoices

Cash discounts are an incentive (usually a small percentage) that you offer to customers in return for paying a bill owed before the scheduled due date. If used properly, cash discounts improve the Days Sales Outstanding aspect of a business's cash conversion cycle. Companies offer various types of discounts at the time of selling. So that customers only pay the amount( total amount-discount). But here how to manage cash discount after generating invoices. Discount payment in Odoo provides a random solution in such cases.

For example, you made a sale on credit to a customer, but one week later the client’s business declared bankruptcy and became completely unable to pay off the credit account with you. This noncollectable debt would then be written-off by your company and recorded as an expense by accountants.

Manage write-off

Normally companies prepare a customer discount before invoicing. But with the help of Odoo we can manage the discount even after the generation of invoices in case of need(at the time of payment). To get a clear idea behind this concept, consider the example:-

Create invoices

  • Create a customer invoice and validate it by:

invoicing->Documents->customer invoices->create invoice

how to manage discount at the time of payment in odoo invoices- create invoices

  • To generate sales order and create invoice :

sales->Quotation->create->

how to manage discount at the time of payment -generate sales

After validating invoice.

To settle payment difference

  • Suppose your company base currency is Euro and your partner currency is USD.
  • While making the payment there is deference due to exchange rate.
    Example: USD 500 (In USD 500 * 1.32 = Euro 660 ) payable and from bank statement is showing Euro 700 deducted, Euro 40 as bank charges or exchange difference.
  • This Euro 40 will show as difference and you can set off this amount with any other account other than Receivable/Payable account Like : Bank Charges / Exchange gain /loss etc...

To get a clear idea,

I used the term which is in Odoo. Look at the explanation below:

60,000 INR is the invoice amount which I need to pay.
50,000 INR is the amount that I paid.

The difference that I have to pay (that is still open) is 10,000 INR. 10,000 INR must be paid.

how to manage discount at the time of payment-settle payment difference

There are 2 options are available:

1. Keep Open

By choosing this option another Odoo invoice will be generated(it includes amount due that you need to pay)

how to manage discount at the time of payment in odoo -keep open

2. Mark invoice as fully paid

Now, customer is telling that he will not pay remaining amount for any reason. So it require to make settlement for our accounting means make write-off on customer invoice.

 fully paid in Odoo

And then click on valid

after click valid in Odoo

You can see that amount due is 0.

Thus we can handle discount:

When we click on paid on, we can see that the paid amount that is 50,000.

paid amount in Odoo

 

Discount payment in odoo

To see write off transactions

invoicing->configuration->accounting->journals->bank->more(journal items)

how to manage discount at the time of payment-to see write off

To activate discount in sales

sales->configuration->settings->pricing->put tick mark on Discount

to activate discount in Odoo

Odoo_ERP_Services

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