diff --git a/accounting/receivables/customer_invoices/cash_discounts.rst b/accounting/receivables/customer_invoices/cash_discounts.rst index e46725d59..aec120417 100644 --- a/accounting/receivables/customer_invoices/cash_discounts.rst +++ b/accounting/receivables/customer_invoices/cash_discounts.rst @@ -1,3 +1,131 @@ ============================ How to setup cash discounts? ============================ + +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. + +For example, a typical cash discount would be: you offer a 2% discount +on an invoice due in 30 days if the customer were to pay within the +first 5 days of receiving the invoice. + +Configuration +============= + +Payment terms +------------- + +In order to manage cash discounts, we will use the payment terms +concept of Odoo (From the Accounting module, go to :menuselection`Configuration --> +Management --> Payment terms --> Create`). + +Let's start with the above example: a 2% discount on an invoice due in +30 days if the customer were to pay within the first 5 days. + +A typical payment term of 30 days would have only one installment: +balance in 30 days. But, in order to configure the cash discount, you +can configure the payment term with two installments: + +- 98% within 5 days +- balance within 30 days + +.. image:: ./media/discount01.png + :align: center + +To make it clear that it's not a payment term but a cash discount, don't +forget to set a clear description that will appear on the invoice: +Invoice is due within 30 days, but you can benefit from a 2% cash +discount if you pay within 5 days. + +Bank reconciliation model +------------------------- + +In order to speed up the bank reconciliation process, we can create a +model of entry for all cash discounts. To do that, from the Accounting +application dashboard, click on the "More" link on the bank and choose +the option "Reconciliation Models". + +.. image:: ./media/discount02.png + :align: center + +Create a new model for cash discounts as follow: + +- **Button Label**: Cash Discount +- **Account**: Cash Discount (according to your country) +- **Amount Type**: Percentage +- **Amount**: 100% +- **Taxes**: depending on your country, you may put a tax on the cash + discount if taxes have to be deduced + +.. image:: ./media/discount03.png + :align: center + +.. tip:: + + Even if it's a 2% cash discount, set a 100% amount on the reconciliation model + as it means 100% of the remaining balance (the 2%). You can use the same + reconciliation model for all your cash discount. No need to create a model + per payment term. + +Creating an invoice with a cash discount +======================================== + +When you create a customer invoice, set the right payment term "30 days, +2% cash discount" right after having selected the customer. + +.. image:: ./media/discount04.png + :align: center + +Once the invoice is validated, Odoo will automatically split the account +receivable part of the journal entry with two installments having a +different due date: 98% within 5 days, 2% within 30 days. + +.. image:: ./media/discount05.png + :align: center + +Payment +======= + +Paying the invoice with a cash discount +--------------------------------------- + +If the customer pays with a cash discount, when processing the bank +statement, you will match the payment (98%) with the related line in the +journal entry. + +.. image:: ./media/discount06.png + :align: center + +As you can see in the above screenshot, when selecting the customer, you +also see the 2% remaining of 3$. If you want to accept the cash discount +(if the customer paid within the 5 days), you can click on this line +with 2%, click on "Open Balance", and select your "Cash Discount" +reconciliation model. That way, the invoice is marked as fully paid. + +.. note:: + + from now on, matching the remaining 2% has to be done manually. In the future, + we plan to automate the reconciliation of the 2% if the 98% are paid on time. + +Paying the invoice in full +-------------------------- + +If the customer pays the invoice fully, without benefiting from the cash +discount, you will reconcile the payment (in full) with the two lines +from the invoice (98% and 2%). Just click on the two lines to match them +with the payment. + +.. image:: ./media/discount07.png + :align: center + +Related topics +============== + +- Overview of the invoicing processes + +.. rst-class:: text-muted + +| Written by Fabien Pinckaers (Odoo) +| Proofread by Geoffrey Bressan (Odoo) diff --git a/accounting/receivables/customer_invoices/media/discount01.png b/accounting/receivables/customer_invoices/media/discount01.png new file mode 100644 index 000000000..f226a4904 Binary files /dev/null and b/accounting/receivables/customer_invoices/media/discount01.png differ diff --git a/accounting/receivables/customer_invoices/media/discount02.png b/accounting/receivables/customer_invoices/media/discount02.png new file mode 100644 index 000000000..aba878f27 Binary files /dev/null and b/accounting/receivables/customer_invoices/media/discount02.png differ diff --git a/accounting/receivables/customer_invoices/media/discount03.png b/accounting/receivables/customer_invoices/media/discount03.png new file mode 100644 index 000000000..0557fe867 Binary files /dev/null and b/accounting/receivables/customer_invoices/media/discount03.png differ diff --git a/accounting/receivables/customer_invoices/media/discount04.png b/accounting/receivables/customer_invoices/media/discount04.png new file mode 100644 index 000000000..290cd621f Binary files /dev/null and b/accounting/receivables/customer_invoices/media/discount04.png differ diff --git a/accounting/receivables/customer_invoices/media/discount05.png b/accounting/receivables/customer_invoices/media/discount05.png new file mode 100644 index 000000000..8cb07f137 Binary files /dev/null and b/accounting/receivables/customer_invoices/media/discount05.png differ diff --git a/accounting/receivables/customer_invoices/media/discount06.png b/accounting/receivables/customer_invoices/media/discount06.png new file mode 100644 index 000000000..578d3398b Binary files /dev/null and b/accounting/receivables/customer_invoices/media/discount06.png differ diff --git a/accounting/receivables/customer_invoices/media/discount07.png b/accounting/receivables/customer_invoices/media/discount07.png new file mode 100644 index 000000000..6b91efc46 Binary files /dev/null and b/accounting/receivables/customer_invoices/media/discount07.png differ