diff --git a/accounting/receivables/customer_invoices/payment_terms.rst b/accounting/receivables/customer_invoices/payment_terms.rst index 7ed8047ab..faa3b683d 100644 --- a/accounting/receivables/customer_invoices/payment_terms.rst +++ b/accounting/receivables/customer_invoices/payment_terms.rst @@ -2,16 +2,18 @@ Payment Terms and Installment Plans =================================== -**Payment Terms** regroup all the conditions under which a sale is completed and paid. They can be -applied to sales orders, customer invoices, and supplier bills, mostly to ensure that they will be -correctly paid, and on time. These conditions cover: +**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 can be applied to sales orders, customer invoices, supplier bills, and contacts. These +conditions cover: - The due date - Some discounts - Any other condition on the payment -Defining Payment Terms automates the computation of payments due dates, both for invoices and bills. -This is particularly helpful in managing installment plans. +Defining Payment Terms automatically calculates the payments' due dates. This is particularly +helpful for managing installment plans. An **installment plan** allows the customers to pay an invoice in parts, with the amounts and payment dates defined beforehand by the seller. @@ -29,19 +31,23 @@ payment dates defined beforehand by the seller. the full payment is due at the end of the month following the invoice date. .. note:: - Payment terms are not to be confused with payment in several parts. If, for a specific order, you - invoice the customer in two parts, that is nor a payment term nor an installment plan, but an - invoicing policy. + 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*. Configuration ============= Go to :menuselection:`Accounting --> Configuration --> Payment Terms` and click on *Create*. -The **Description on the Invoice** is the displayed text on a sale order, invoice, or bill. +The **Description on the Invoice** is the text displayed on the document (sale order, invoice, +etc.). -In the **Terms** section, you can add a set of rules, that we call *terms*, to define what needs to -be paid, and by which due date. +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*. @@ -49,12 +55,13 @@ To add a term, click on *Add a line*, and define its *Type*, *Value*, and *Due D - 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% of the invoice is due on the day of issuance of the invoice, and the -balance is due at the end of the following month. +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:: media/payment_terms_configuration.png +.. image:: payment_terms/configuration.png :align: center - :alt: Example of payment terms. The last line is the balance due the 31st of the following month. + :alt: Example of Payment Terms. The last line is the balance due on the 31st of the following + month. Using Payment Terms =================== @@ -72,25 +79,26 @@ Payment Terms can be defined with the **Payment Terms** field on: | 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. +.. tip:: + You can also define a **Due Date** manually. If Payment Terms are already defined, empty the + field so you can select a date. + Journal Entries =============== + Invoices with specific Payment Terms generate different *Journal Entries*, with one *Journal Item* -for each different *Due Date* computed. +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. +rather than just the balance due date. It also helps to get an accurate *Aged Receivable report*. -In the following example, an invoice of $1000 has been issued with the following payment terms: -30% of the invoice is due on the day of issuance of the invoice, and the balance is due at the end -of the following month. - -.. image:: media/payment_terms_journal_entry.png +.. image:: payment_terms/journal-entry.png :align: center - :alt: Example of an invoice with specific Payment Terms. The amount debited on the Account - Receivable is split in several Journal Items. + :alt: The amount debited on the Account Receivable is split into two Journal Items with distinct + Due Dates -The $1000 debited on the Account Receivable is split into two distinct *Journal Items*. Both of -them have their own **Due Date**. +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 | @@ -102,7 +110,8 @@ them have their own **Due Date**. | Product Sales | | | 1000 | +----------------------+-------------+---------+---------+ -This allows for easier reconciliation and to accurately follow up late payments. +The $1000 debited on the Account Receivable is split into two distinct *Journal Items*. Both of +them have their own **Due Date**. .. seealso:: - :doc:`cash_discounts` diff --git a/accounting/receivables/customer_invoices/media/payment_terms_configuration.png b/accounting/receivables/customer_invoices/payment_terms/configuration.png similarity index 100% rename from accounting/receivables/customer_invoices/media/payment_terms_configuration.png rename to accounting/receivables/customer_invoices/payment_terms/configuration.png diff --git a/accounting/receivables/customer_invoices/media/payment_terms_journal_entry.png b/accounting/receivables/customer_invoices/payment_terms/journal-entry.png similarity index 100% rename from accounting/receivables/customer_invoices/media/payment_terms_journal_entry.png rename to accounting/receivables/customer_invoices/payment_terms/journal-entry.png