Odoo 15 Accounting Module Payment Terms

Payment Terms are required information that must be included in the invoice in order for customers to be notified when they make a payment. Customers can usually schedule their payments and proceed with their purchases using payment terms. Simultaneously, it will ensure that your firm maintains adequate cash flow, free of clutter and payment delays. 

Invoices and Payment Terms

This feature is included in Odoo's Accounting module. The option can be configured under the Accounting module's Configuration tab. Click the Payment Terms option from the drop-down menu in the module, and Odoo will lead you to the Payment Terms page, as shown below. 

Odoo 15 Accounting Module

Payment conditions are pre-installed in Odoo and can be used in invoices. If you wish to change this, simply click on the Payment term and use the Edit option to change the payment period you desire, as shown below. 

If you wish to establish a new Payment Term, go to the Payment Terms section and click the Construct button. This will lead you to a configuration page where you may create new Payment Terms, as shown below. 

The first step in creating payment terms is to give it a name and then select a company from the Company section or field.

You can type in the Description on the Payment Term under the Description on the Invoice section. The invoice will reflect this. So make it simple and to the point so that clients can quickly review the payment terms.

After that, you'll need to construct the Term type. To do so, scroll down to the bottom of the configuration area and click the Add a line button, as seen in the image below.

Odoo 15 Accounting Module Payment Terms

Select it, and a configuration tab will appear, as seen below, where you can configure the Term Type. 

Setting the Type is the first step. Here, You have the option of selecting Balance, Percent, or Fixed Amount. If you select Percent or Fixed Amount, a setup section will apply the percentages or amounts as indicated below. 

Fill in the percentage. After that, you can move on to the part of calculating the due date. This is a place where you can figure out when something is due. Enter the number of Due days on the Due line, and then select the aspects on the days' period from the drop-down selections as shown below. 

To use it, select one of the choices. After you've completed the configurations, click the Save & Close button to exit the configuration screen, or click the Save & New button to continue creating a new payment term. To save the Payment Type, the section clicks the Save button from the main configuration. The Payment Type can be found in the Payment Types list.

You can customize the Payment Terms for each of your customers. This is something you can do with customers depending on the sort of business you're conducting with them. To set this up, go to the Customer tab and select Customers from the drop-down menu. As illustrated below, this will provide you with a list of your customers. 

When you click on the client you wish to configure, a page with all of the customer's information will appear, as seen below. 

The Payment Terms field can be found under the Sales & Purchase tab. Select Payment Terms from the drop-down menu. Following the setups, the Payment Terms will be automatically filled in on every new invoice you send to the customer. In the image above, for example, the Payment Term is set to 'End Of Next Month.' So, let's make an invoice for the customer we've set up.

The Payment Term will be automatically inserted when you add the customer in the Due Date area. You can alter the Payment Term by clicking on the existing Payment Term and selecting one of the choices below. 

You can also utilize the same way if the customer is new. Select the Payment term from the invoice. 

In the Customer field, type the name of the customer to whom you want to send the invoice. In the Invoice Date section, type the invoice date. It's worth noting that you can do it from here because the customer is new and hasn't yet been set Payment Terms. So, after you've entered the invoice date in the Due date area, combine the dates, and then input the Term in the Term box from the drop-down options as seen below. 

If you can't find the Payment Term you want, click Search for more alternatives. As seen below, this will provide you with a list of payment terms. 

If you still can't find the Payment Term you want, click the Create option to make one. The Payment Terms configuration tab or page will appear.

The Odoo 15 Accounting module isn't the only one with a Payment Terms capability. It may be found in all of Odoo's modules that require the use of invoices. Payment terms, as well as invoices, are used in the Sales module. It is efficient in the management of invoices. Similar to the Accounting module, you can quickly handle the Payment terms with quotations and customers without any clutter. 

Odoo 15 Modules Payment Terms for Quotations and Sales Orders 

Payment terms in Quotations can be used to automatically define payment terms on all invoices generated from a Quotation. In the same way that we set up payment terms in Customer invoices in the Accounting module, setting up payment terms in Quotations in the Odoo 15 Sales module is simple. 

Accounting module>Configuration>Payment Terms

To do so, complete the initial Payment terms setups in the Accounting module, as described in the Customer invoicing portion of the blog. After the setups, define the Payment term for an individual customer in the Accounting module; save the information and open the Sales module. Create a new sales order from the Sales; after module by clicking the Create button on the Sales module's Dashboard, as shown below. 

This will take you to a page where you can specify the Sales order, as seen below. 

When you add a customer, the Payment Terms box will be automatically filled based on the Accounting module specifications indicated below. 

By clicking on the Payment Term field and selecting from the drop-down list as shown below, you can alter the Payment Term. 

After you've finished configuring the Sales Order, you may utilize the Search more option to look for new Payment conditions. To go to the next stage, click the Confirm button. To create an invoice, validate the sales order and then click Create invoice. In the following stage, you can see a preview or draft view of the invoice, as shown below. 

The Payment Terms will be provided in the Due date portion of the Draft invoice. When you use Payment Terms on Sales Orders, you and your clients can keep track of Installments in the event of Vendor Bills. Order configurations can swiftly execute Installments with the payment terms if you wish to manage Vendor invoices with several installments. You don't have to utilize the Payment Terms on Vendor invoices all of the time; you can use the Due date for single Installments instead. The journal entries for the Payments conditions will be retained as well. For better data management efficiency, Odoo considers all Due Dates, not just the Balance Due Date, resulting in smoother Reconciliation and Follow-up operations.