diff --git a/content/applications/finance/accounting/customer_invoices/cash_discounts.rst b/content/applications/finance/accounting/customer_invoices/cash_discounts.rst index 9db4d7752..381de322c 100644 --- a/content/applications/finance/accounting/customer_invoices/cash_discounts.rst +++ b/content/applications/finance/accounting/customer_invoices/cash_discounts.rst @@ -5,7 +5,7 @@ Cash discounts and tax reduction **Cash discounts** are reductions in the amount a customer must pay for goods or services offered as an incentive for paying their invoice promptly. These discounts are typically a percentage of the total invoice amount and are applied if the customer pays within a specified time. Cash discounts -can help the company maintain a steady cash flow. +can help a company maintain a steady cash flow. .. example:: You issue a €100 invoice on the 1st of January. The full payment is due within 30 days, and you @@ -17,15 +17,46 @@ can help the company maintain a steady cash flow. A :ref:`tax reduction ` can also be applied depending on the country or region. +.. seealso:: + - :doc:`payment_terms` + - :doc:`../payments` + .. _cash-discounts/configuration: Configuration ============= -To grant cash discounts to customers, you must first set up the :ref:`type of tax reduction -`, verify the :ref:`gain and loss accounts -`, and configure new :ref:`payment terms -`. +To grant cash discounts to customers, you must first verify the :ref:`gain and loss accounts +`. Then, configure :ref:`payment terms +` and add a cash discount by checking the :guilabel:`Early Discount` +checkbox and filling in the discount percentage, discount days, and :ref:`tax +reduction ` fields. + +.. _cash-discounts/gain-loss-accounts: + +Cash discount gain/loss accounts +-------------------------------- + +With a cash discount, the amount you earn depends on whether the customer benefits from the cash +discount or not. This inevitably leads to gains and losses, which are recorded on default accounts. + +To modify these accounts, go to :menuselection:`Accounting --> Configuration --> Settings`, and, in +the :guilabel:`Default Accounts` section, select the accounts you want to use for the +:guilabel:`Cash Discount Gain account` and :guilabel:`Cash Discount Loss account`. + +.. _cash-discounts/payment-terms: + +Payment terms +------------- + +Cash discounts are defined on :doc:`payment terms `. Configure them to your liking by +going to :menuselection:`Accounting --> Configuration --> Payment Terms`, and make sure to fill out +the discount percentage, discount days, and :ref:`tax reduction ` +fields. + +.. image:: cash_discounts/payment-terms.png + :alt: Configuration of payment terms named "2/7 Net 30". The field "Description on Invoices" + reads: "Payment terms: 30 Days, 2% Early Payment Discount under 7 days". .. _cash-discounts/tax-reductions: @@ -33,24 +64,24 @@ Tax reductions -------------- Depending on the country or region, the base amount used to compute the tax can vary, which can lead -to a **tax reduction**. +to a **tax reduction**. Since tax reductions are set on individual payment terms, each term can use +a specific tax reduction. -To configure how the tax reduction is applied, go to :menuselection:`Accounting --> Configuration ---> Settings`, and in the :guilabel:`Taxes` section, in the :guilabel:`Cash Discount Tax Reduction` -feature, select one of the three following options: +To configure how the tax reduction is applied, go to a payment term with the :guilabel:`Early +Discount` checkbox enabled, and select one of the three following options: -Always (upon invoice) - The tax is always reduced. The base amount used to compute the tax is the discounted amount, - whether the customer benefits from the discount or not. +- Always (upon invoice) + The tax is always reduced. The base amount used to compute the tax is the discounted amount, + whether the customer benefits from the discount or not. -On early payment - The tax is reduced only if the customer pays early. The base amount used to compute the tax is the - same as the sale: if the customer benefits from the reduction, then the tax is reduced. This means - that, depending on the customer, the tax amount can vary after the invoice is issued. +- On early payment + The tax is reduced only if the customer pays early. The base amount used to compute the tax is the + same as the sale: if the customer benefits from the reduction, then the tax is reduced. This means + that, depending on the customer, the tax amount can vary after the invoice is issued. -Never - The tax is never reduced. The base amount used to compute the tax is the full amount, whether the - customer benefits from the discount or not. +- Never + The tax is never reduced. The base amount used to compute the tax is the full amount, whether the + customer benefits from the discount or not. .. example:: @@ -70,10 +101,10 @@ Never - Computation * - 8th of January - €118.58 - - (€98 + (21% of €98)) + - €98 + (21% of €98) * - 31st of January - €120.58 - - (€100 + (21% of €98)) + - €100 + (21% of €98) .. tab:: On early payment @@ -85,10 +116,10 @@ Never - Computation * - 8th of January - €118.58 - - (€98 + (21% of €98)) + - €98 + (21% of €98) * - 31st of January - €121.00 - - (€100 + (21% of €100)) + - €100 + (21% of €100) .. tab:: Never @@ -100,10 +131,10 @@ Never - Computation * - 8th of January - €119.00 - - (€98 + (21% of €100)) + - €98 + (21% of €100) * - 31st of January - €121.00 - - (€100 + (21% of €100)) + - €100 + (21% of €100) .. note:: - :ref:`Tax grids `, which are used for the tax report, are correctly @@ -112,41 +143,12 @@ Never - The **type of cash discount tax reduction** may be correctly pre-configured, depending on your :ref:`fiscal localization package `. -.. _cash-discounts/gain-loss-accounts: - -Cash discount gain/loss accounts --------------------------------- - -With a cash discount, the amount you earn depends on whether the customer benefits from the cash -discount or not. This inevitably leads to gains and losses, which are recorded on default accounts. - -To modify these accounts, go to :menuselection:`Accounting --> Configuration --> Settings`, and in -the :guilabel:`Default Accounts` section, select the accounts you want to use for the -:guilabel:`Cash Discount Gain account` and :guilabel:`Cash Discount Loss account`. - -.. _cash-discounts/payment-terms: - -Payment terms -------------- - -Cash discounts are defined on :doc:`payment terms `. Configure them to your liking by -going to :menuselection:`Accounting --> Configuration --> Payment Terms`, and make sure to fill out -the fields :guilabel:`Discount %` and :guilabel:`Discount Days`. - -.. image:: cash_discounts/payment-terms.png - :align: center - :alt: Configuration of payment terms named "2/7 Net 30". The field "Description on Invoices" - reads: "Payment terms: 30 Days, 2% Early Payment Discount under 7 days". - -.. seealso:: - :doc:`payment_terms` - .. _cash-discounts/customer-invoice: Apply a cash discount to a customer invoice =========================================== -Apply a cash discount to a customer invoice by selecting the :ref:`payment terms you created +On a customer invoice, apply a cash discount by selecting the :ref:`payment terms you created `. Odoo automatically computes the correct amounts, tax amounts, due dates, and accounting records. @@ -154,26 +156,23 @@ Under the :guilabel:`Journal Items` tab, you can display the discount details by "toggle" button and adding the :guilabel:`Discount Date` and :guilabel:`Discount Amount` columns. .. image:: cash_discounts/invoice-journal-entry.png - :align: center :alt: An invoice of €100.00 with "2/7 Net 30" selected as payment terms. The "Journal Items" tab is open, and the "Discount Date" and "Discount Amount" columns are displayed. -The discount amount and due date are also displayed on the generated invoice sent to the customer. +The discount amount and due date are also displayed on the generated invoice report sent to the +customer if the :guilabel:`Show installment dates` option is checked on the payment terms. .. image:: cash_discounts/invoice-print.png - :align: center - :alt: An invoice of €100.00 with the following text added to the terms and conditions: "30 Days, - 2% Early Payment Discount under 7 days. 118.58 € due if paid before 01/08/2023." + :alt: An invoice of €100.00 with the following text added to the terms and conditions: "30 + Days, 2% Early Payment Discount under 7 days. 118.58 € due if paid before 01/08/2023." Payment reconciliation ---------------------- -When you record a payment or reconcile your bank statements, Odoo takes the customer payment's date -into account to define if they can benefit from the cash discount or not. +When you record a :doc:`payment <../payments>` or :doc:`reconcile your bank transactions +<../bank/reconciliation>`, Odoo takes the customer payment's date into account to determine if the +customer can benefit from the cash discount or not. .. note:: - If your customer pays the discount amount *after* the discount date, you can always decide - whether to mark the invoice as fully paid with a write-off or as partially paid. - -.. seealso:: - :doc:`../payments` + If your customer pays the discount amount *after* the discount date, you can always decide to + mark the invoice as fully paid with a write-off or as partially paid. diff --git a/content/applications/finance/accounting/customer_invoices/cash_discounts/payment-terms.png b/content/applications/finance/accounting/customer_invoices/cash_discounts/payment-terms.png index 06a50af32..1931f6ce8 100644 Binary files a/content/applications/finance/accounting/customer_invoices/cash_discounts/payment-terms.png and b/content/applications/finance/accounting/customer_invoices/cash_discounts/payment-terms.png differ diff --git a/content/applications/finance/accounting/customer_invoices/payment_terms.rst b/content/applications/finance/accounting/customer_invoices/payment_terms.rst index 1a97e9de5..1f999802a 100644 --- a/content/applications/finance/accounting/customer_invoices/payment_terms.rst +++ b/content/applications/finance/accounting/customer_invoices/payment_terms.rst @@ -49,43 +49,41 @@ To create new payment terms, follow these steps: #. 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 +#. Enter a name in the :guilabel:`Payment Terms` field. This field is the name displayed both + internally and on sales orders. +#. Tick the :guilabel:`Early Discount` checkbox and fill out the discount percentage, discount days, + and :ref:`tax reduction ` fields to add a :doc:`cash discount + `, if desired. +#. In the :guilabel:`Due 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`). - 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`. + To add a term, click on :guilabel:`Add a line`, define the discount's value and type in the + :guilabel:`Due` fields, then fill out the :guilabel:`After` fields to determine the due date. +#. Enter the text to be displayed on the document (sales order, invoice, etc.) in the gray textbox + in the :guilabel:`Preview` column. +#. Tick the :guilabel:`Show installment dates` checkbox to display a breakdown of each payment and + its due date on the invoice report, if desired. .. tip:: 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. + :guilabel:`After` field. -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 +To test that your payment terms are configured correctly, enter an invoice date on the +:guilabel:`Example` line to generate the payments that would be due and their due dates using these payment terms. .. important:: - - Terms are computed in the order of their due dates. - - The **balance** should always be used for the last line. + Terms are computed in the order of their due dates. .. 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. + In the following example, 30% is due on the day of issuance, and the remaining 70% 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. + :alt: Example of Payment Terms. The first line is the 30% due immediately. The second line is + the remaining 70% due at the end of the following month. Using payment terms =================== @@ -126,7 +124,7 @@ due date into account, rather than just the balance due date. It also helps to g 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.* + due on the day of issuance, and the remaining 70% is due at the end of the following month.* +----------------------+-------------+---------+---------+ | Account | Due date | Debit | Credit | 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 d7a96fc56..2381104a5 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