As we all know, Odoo is a very popular ERP. Odoo has a very good accounting system which gives prompt reports. When we deal with different customers, we may have to use different payment terms like immediate payment, 30% advance and balance after one month.
We can manage this pretty well using Odoo. Odoo has different due types.
- Balance
- Percentage
- Fixed amount
We can use the combination of these to create a new payment term.
For example-
Payment term: 30% Immediate and balance at the end of the current month, In this case, we have to create a payment term with two of the above due types. Percentage and Balance.
As you can see in the above picture, we have added 'Percentage' and 'Balance' lines under terms.
In percentage line,
We selected '0 Day(s) after the invoice date' and put the value as 30.0
In balance line,
We choose the 'Last day of current month.
This is how a payment term is created. Now we just have to set this for appropriate customers.
Now let’s consider the Instalment part.
What about installment?
What if the customers are not ready to make the balance payment at once? What to do if they are asking for an EMI facility?
Do we have to configure this by multiple lines of percentage or using the fixed amount type like this?
No, we have a way to manage this, but it needs a small customization.
We have to create a new due type. Let us call it 'Instalment' with some new due date computation methods
We have period types Day(s), Week(s), Month(s) and Year(s). We can choose time interval using this option. And we should provide the number of installments.
This will split the remaining amount into equal parts with different due dates based on the period type and number of installments
For example:-
We selected period type 'Month(s)' and a number of installments as 12
Let us see the effect of this payment term in the journal entry of an invoice.
In invoice:
Please note the payment term in the invoice, we selected '12 Month Instalment' that we created
In journal:
You may have noticed the 'amount currency’, ‘debit' and 'Due date' of journal items. They are split into equal parts. You can see this changes in customer statement too.
Now with this small customization, we can manage the installment in Odoo more easily.