diff --git a/content/applications/finance/accounting/customer_invoices.rst b/content/applications/finance/accounting/customer_invoices.rst index 061a81ae8..331590aae 100644 --- a/content/applications/finance/accounting/customer_invoices.rst +++ b/content/applications/finance/accounting/customer_invoices.rst @@ -188,6 +188,8 @@ you will see the follow-up message and all overdue invoices. .. image:: customer_invoices/invoice12.png +.. _customer-invoices/aging-report: + Customer aging report: ~~~~~~~~~~~~~~~~~~~~~~ diff --git a/content/applications/finance/accounting/customer_invoices/payment_terms.rst b/content/applications/finance/accounting/customer_invoices/payment_terms.rst index 6131eb5a9..1a97e9de5 100644 --- a/content/applications/finance/accounting/customer_invoices/payment_terms.rst +++ b/content/applications/finance/accounting/customer_invoices/payment_terms.rst @@ -2,120 +2,141 @@ Payment terms and installment plans =================================== -**Payment Terms** specify all the conditions under which a sale is paid, mostly to ensure customers -pay their invoices correctly and on time. +**Payment terms** specify all the conditions of a sale's payment to help ensure customers pay their +invoices correctly and on time. -Payment Terms can be applied to sales orders, customer invoices, supplier bills, and contacts. These -conditions cover: +Payment terms are generally defined on documents such as sales orders, customer invoices, and +vendor bills. Payment terms cover: -- The due date -- Some discounts -- Any other condition on the payment - -Defining Payment Terms automatically calculates the payments' due dates. This is particularly -helpful for managing installment plans. +- The due date(s) +- Early payment discounts +- Any other conditions on the payment An **installment plan** allows the customers to pay an invoice in parts, with the amounts and payment dates defined beforehand by the seller. -**Examples of Payment Terms:** - -- | **Immediate Payment** - | The full payment is due on the day of the invoice's issuance. -- | **15 Days** (or **Net 15**) - | The full payment is due 15 days after the invoice date. -- | **21 MFI** - | The full payment is due by the 21st of the month following the invoice date. -- | **2% 10, Net 30 EOM** - | 2% :doc:`cash discount ` if the payment is received within ten days. Otherwise, - the full payment is due at the end of the month following the invoice date. +.. example:: + Immediate Payment + The full payment is due on the day of the invoice's issuance. + 15 Days (or Net 15) + The full payment is due 15 days after the invoice date. + 21 MFI + The full payment is due by the 21st of the month following the invoice date. + 30% Advance End of Following Month + 30% is due on the day of the invoice's issuance. The remaining balance is due at the end of the + following month. + 2% 10, Net 30 EOM + A 2% :doc:`cash discount ` if the payment is received within ten days. + Otherwise, the full payment is due at the end of the month following the invoice date. .. note:: - Payment terms are not to be confused with down payment invoices. If, for a specific order, you - issue several invoices to your customer, that is neither a payment term nor an installment plan, - but an invoicing policy. - -.. note:: - This document is about the *Payment Terms* feature, not *Terms & Conditions*. + - Payment terms are not to be confused with :doc:`down payment invoices + `. If, for a specific order, you issue + multiple invoices to your customer, that is neither a payment term nor an installment plan but + an invoicing policy. + - This page is about the *payment terms* feature, not :doc:`terms & conditions + `, which can be used to declare contractual obligations regarding content + use, return policies, and other policies surrounding the sale of goods and services. .. seealso:: + - `Odoo Tutorials: payment terms `_ - :doc:`cash_discounts` - - `Odoo Tutorials: Payment Terms `_ Configuration ============= -Go to :menuselection:`Accounting --> Configuration --> Payment Terms` and click on *Create*. +To create new payment terms, follow these steps: -The **Description on the Invoice** is the text displayed on the document (sale order, invoice, -etc.). +#. Go to :menuselection:`Accounting --> Configuration --> Payment Terms` and click on + :guilabel:`New`. +#. Enter a name in the :guilabel:`Payment Terms` field. This field is the name displayed in the + database and is not customer-facing. +#. Enter the text to be displayed on the document (sales order, invoice, etc.) in the + :guilabel:`Description on the Invoice` field. +#. Tick the :guilabel:`Display terms on invoice` checkbox to display a breakdown of each payment and + its due date on the invoice report, if desired. +#. In the :guilabel:`Terms` section, add a set of rules (terms) to define what needs to be paid and + by which due date(s). Defining terms automatically calculates the payments' due date(s). This is + particularly helpful for managing **installment plans** (:dfn:`payment terms with multiple + terms`). -In the **Terms** section, you can add a set of rules, called *terms*, to define what needs to be -paid and by which due date. - -To add a term, click on *Add a line*, and define its *Type*, *Value*, and *Due Date Computation*. - -.. important:: - - Terms are computed in the order they are set up. - - The **balance** should always be used for the last line. - -In the following example, 30% is due on the day of issuance, and the balance is due at the end of -the following month. - -.. image:: payment_terms/configuration.png - :align: center - :alt: Example of Payment Terms. The last line is the balance due on the 31st of the following - month. - -Using Payment Terms -=================== - -Payment Terms can be defined in the **Due Date** field, with the **Terms** drop-down list, on: - -- | **Quotations** - | To set specific payment terms automatically on all invoices generated from a quotation. -- | **Customer Invoices** - | To set specific payment terms on an invoice. -- | **Vendor Bills** - | To set specific payment terms on a bill. This is mostly useful when you need to manage vendor - terms with several installments. Otherwise, setting the *Due Date* is enough. + To add a term, click on :guilabel:`Add a line`, define its :guilabel:`Due Type` and + :guilabel:`Value`, and fill out the appropriate fields to define when the term is due, including + any :doc:`discounts `. Due dates are calculated by taking the invoice/bill date, + first adding the :guilabel:`Months`, and then adding the :guilabel:`Days`. If the :guilabel:`End + of month` toggle is enabled, the due date will then be the end of that month, plus any + :guilabel:`Days after End of month`. .. tip:: - You can also define a **Due Date** manually. If Payment Terms are already defined, empty the - field so you can select a date. + To instead specify a number of days *before the end of the month*, use a negative value in the + :guilabel:`Days after End of month` field. -Payment Terms can be defined with the **Payment Terms** field on: +To test that your payment terms are configured correctly, enter an invoice amount and invoice date +in the :guilabel:`Example` section to generate the payments that would be due and their due dates +using these payment terms. -- | **Contacts** - | To set specific payment terms automatically on new sales orders, invoices, and bills of a - contact. This can be modified in the contact’s *Form View*, under the *Sales & Purchase* tab. +.. important:: + - Terms are computed in the order of their due dates. + - The **balance** should always be used for the last line. -Journal Entries +.. example:: + In the following example, 30% is due on the day of issuance, and the balance is due at the end of + the following month. + + .. image:: payment_terms/configuration.png + :alt: Example of Payment Terms. The last line is the balance due on the 31st of the following + month. + +Using payment terms +=================== + +Payment terms can be defined using the :guilabel:`Payment Terms` field on: + +- **Contacts:** To automatically set default payment terms on a contact's new sales orders, + invoices, and bills. This can be modified in the contact form, under the :guilabel:`Sales & + Purchase` tab. +- **Quotations/Sales Orders:** To set specific payment terms automatically on all invoices generated + from a quotation or sales order. + +Payment terms can be defined using the :guilabel:`Due Date` field, with the :guilabel:`Terms` +drop-down list on: + +- **Customer invoices:** To set specific payment terms on an invoice. +- **Vendor bills:** To set specific payment terms on a bill. + +.. tip:: + Setting payment terms on a vendor bill is mostly useful for managing vendor terms with multiple + installments or cash discounts. Otherwise, manually setting the **due date** is enough. If + payment terms are already defined, empty the field to select a date. + +Journal entries =============== -Invoices with specific Payment Terms generate different *Journal Entries*, with one *Journal Item* -for every computed *Due Date*. +Invoices with specific payment terms generate different *journal entries*, with one *journal item* +for every computed *due date*. -This makes for easier *Follow-ups* and *Reconciliation* since Odoo takes each due date into account, -rather than just the balance due date. It also helps to get an accurate *Aged Receivable report*. +This makes for easier :doc:`follow-ups ` and +:doc:`reconciliation ` since Odoo takes each +due date into account, rather than just the balance due date. It also helps to get an accurate +:ref:`aged receivable report `. -.. image:: payment_terms/journal-entry.png - :align: center - :alt: The amount debited on the Account Receivable is split into two Journal Items with distinct - Due Dates +.. example:: + .. image:: payment_terms/journal-entry.png + :alt: The amount debited to the account receivable is split into two journal items with + distinct due dates -In this example, an invoice of $1000 has been issued with the following payment terms: *30% is due -on the day of issuance, and the balance is due at the end of the following month.* + In this example, an invoice of $1000 has been issued with the following payment terms: *30% is + due on the day of issuance, and the balance is due at the end of the following month.* -+----------------------+-------------+---------+---------+ -| Account | Due date | Debit | Credit | -+======================+=============+=========+=========+ -| Account Receivable | February 21 | 300 | | -+----------------------+-------------+---------+---------+ -| Account Receivable | March 31 | 700 | | -+----------------------+-------------+---------+---------+ -| Product Sales | | | 1000 | -+----------------------+-------------+---------+---------+ + +----------------------+-------------+---------+---------+ + | Account | Due date | Debit | Credit | + +======================+=============+=========+=========+ + | Account Receivable | February 21 | 300 | | + +----------------------+-------------+---------+---------+ + | Account Receivable | March 31 | 700 | | + +----------------------+-------------+---------+---------+ + | Product Sales | | | 1000 | + +----------------------+-------------+---------+---------+ -The $1000 debited on the Account Receivable is split into two distinct *Journal Items*. Both of -them have their own **Due Date**. + The $1000 debited to the account receivable is split into two distinct journal items. Both of + them have their own due date. diff --git a/content/applications/finance/accounting/customer_invoices/payment_terms/configuration.png b/content/applications/finance/accounting/customer_invoices/payment_terms/configuration.png index 4cbb63c3d..d7a96fc56 100644 Binary files a/content/applications/finance/accounting/customer_invoices/payment_terms/configuration.png and b/content/applications/finance/accounting/customer_invoices/payment_terms/configuration.png differ diff --git a/content/applications/finance/accounting/customer_invoices/payment_terms/journal-entry.png b/content/applications/finance/accounting/customer_invoices/payment_terms/journal-entry.png index e47143fc0..cb510814a 100644 Binary files a/content/applications/finance/accounting/customer_invoices/payment_terms/journal-entry.png and b/content/applications/finance/accounting/customer_invoices/payment_terms/journal-entry.png differ