Arunima PDec. 10, 2018
Businesses regardless of industry or size, payment terms can be used to help receive payments on a predictable schedule. By this fixed payment, schedule organization can easily create a budget and make financial forecasts and can prevent any cash flow problems. There are different payment terms in Odoo ERP like immediate payment, 30% advance and balance after one month, etc. We can set different payment terms in Odoo and use it for both customer bills and vendor bills.
To create a new payment term:-
Invoicing → Configuration → Management → Payment Terms
Create a new payment term by clicking create button.
Then create new payment term and add a description for invoice. This description will be displayed on the invoice.
Here new payment term is ‘40 % advance in 4 days and balance within 2 weeks’. Invoice description is added accordingly.
Then add term details by clicking Add an item. Please note that the last line’s computation type should be ‘Balance’ to ensure that the whole amount will be allocated. Otherwise can’t save the newly created payment term and show a warning.
This is the window when click Add an item.
Here we can see that 3 term types such as Balance, Percent and Fixed Amount
Different due date computation can be select as per the type needed.
Then select the number of days.
The final Payment Terms look like:
Save the newly created Payment Terms in Odoo. New payment term is ready, then this payment term can apply on partner master, sales order and invoice. The usage of payment terms are in both customer bills and vendor bills.
For setting new payment term to partner master
for customer payment terms go to:
Invoicing →Sales →Master Data → Customer
For vendor payment terms go to:
Invoicing →Purchases →Master Data → Vendor
Choose the appropriate payment terms for the partner in the Invoicing tab.
Customer payment:
vendor payment:
It is possible to set Payment terms for particular invoices.
If we create a customer invoice for the above partner (partner which set payment terms). When we select the partner the payment term will be automatically added.
Go to :
Invoicing →Sales → Documents →Customer Invoices
Also, we can check the Journal Entries, also see that the entries are based on the payment terms.
Go to:
Adviser →Accounting Entries →Journal Entries
We can also set payment terms in the sales order.
Select a Sales order in Orders in Sales module. Then you can set payment term.