documentation/accounting/overview/process_overview/customer_invoice.rst

============================================
From Customer Invoice to Payments Collection
============================================

Odoo supports multiple invoicing and payment workflows, so you can
choose and use the ones that match your business needs. Whether you want
to accept a single payment for a single invoice, or process a payment
spanning multiple invoices and taking discounts for early payments, you
can do so efficiently and accurately.

From Draft Invoice to Profit and Loss
=====================================

If we pick up at the end of a typical 'order to cash' scenario, after
the goods have been shipped, you will: issue an invoice; receive
payment; deposit that payment at the bank; make sure the Customer
Invoice is closed; follow up if Customers are late; and finally present
your Income on the Profit and Loss report and show the decrease in
Assets on the Balance Sheet report.

Invoicing in most countries occurs when a contractual obligation is met.
If you ship a box to a customer, you have met the terms of the contract
and can bill them. If your supplier sends you a shipment, they have met
the terms of that contract and can bill you. Therefore, the terms of the
contract is fulfilled when the box moves to or from the truck. At this
point, Odoo supports the creation of what is called a Draft Invoice by
Warehouse staff.

Invoice creation
================

Draft invoices can be manually generated from other documents such as
Sales Orders, Purchase Orders,etc. Although you can create a draft
invoice directly if you would like.

An invoice must be provided to the customer with the necessary
information in order for them to pay for the goods and services ordered
and delivered. It must also include other information needed to pay the
invoice in a timely and precise manner.

Draft invoices
==============

The system generates invoice which are initially set to the Draft state.
While these invoices

remain unvalidated, they have no accounting impact within the system.
There is nothing to stop users from creating their own draft invoices.

Let's create a customer invoice with following information:

- Customer: Agrolait
- Product: iMac
- Quantity: 1
- Unit Price: 100
- Taxes: Tax 15%

.. image:: ./media/invoice01.png
   :align: center

.. image:: ./media/invoice02.png
   :align: center

The document is composed of three parts:

-  the top of the invoice, with customer information,
-  the main body of the invoice, with detailed invoice lines,
-  the bottom of the page, with detail about the taxes, and the totals.

Open or Pro-forma invoices
==========================

An invoice will usually include the quantity and price the of goods
and/or services, the date, any parties involved, the unique invoice
number, and any tax information.

"Validate" the invoice when you are ready to approve it. The invoice
then moves from the Draft state to the Open state.

When you have validated an invoice, Odoo gives it a unique number from a
defined, and modifiable, sequence.

.. image:: ./media/invoice03.png
   :align: center

Accounting entries corresponding to this invoice are automatically
generated when you validate the invoice. You can see the details by
clicking on the entry in the Journal Entry field in the "Other Info"
tab.

.. image:: ./media/invoice04.png
   :align: center

Send the invoice to customer
============================

After validating the customer invoice, you can directly send it to the
customer via the 'Send by email' functionality.

.. image:: ./media/invoice05.png
   :align: center

A typical journal entry generated from a validated invoice will look
like as follows:

+-----------------------+---------------+----------------+-------------+--------------+
| **Account**           | **Partner**   | **Due date**   | **Debit**   | **Credit**   |
+=======================+===============+================+=============+==============+
| Accounts Receivable   | Agrolait      | 01/07/2015     | 115         |              |
+-----------------------+---------------+----------------+-------------+--------------+
| Taxes                 | Agrolait      |                |             | 15           |
+-----------------------+---------------+----------------+-------------+--------------+
| Sales                 |               |                |             | 100          |
+-----------------------+---------------+----------------+-------------+--------------+

Payment
=======

In Odoo, an invoice is considered to be paid when the associated
accounting entry has been reconciled with the payment entries. If there
has not been a reconciliation, the invoice will remain in the Open state
until you have entered the payment.

A typical journal entry generated from a payment will look like as
follows:

+-----------------------+---------------+----------------+-------------+--------------+
| **Account**           | **Partner**   | **Due date**   | **Debit**   | **Credit**   |
+=======================+===============+================+=============+==============+
| Bank                  | Agrolait      |                | 115         |              |
+-----------------------+---------------+----------------+-------------+--------------+
| Accounts Receivable   | Agrolait      |                |             | 115          |
+-----------------------+---------------+----------------+-------------+--------------+

Receive a partial payment through the bank statement
====================================================

You can manually enter your bank statements in Odoo, or you can import
them in from a csv file or from several other predefined formats
according to your accounting localisation.

Create a bank statement from the accounting dashboard with the related
journal and enter an amount of $100 .

.. image:: ./media/invoice06.png
   :align: center

Reconcile
=========

Now let's reconcile!

.. image:: ./media/invoice07.png
   :align: center

You can now go through every transaction and reconcile them or you can mass reconcile with instructions at the bottom.

After reconciling the items in the sheet, the related invoice will now
display "You have outstanding payments for this customer. You can
reconcile them to pay this invoice. "

.. image:: ./media/invoice08.png
   :align: center

.. image:: ./media/invoice09.png
   :align: center

Apply the payment. Below, you can see that the payment has been added to
the invoice.

.. image:: ./media/invoice10.png
   :align: center

Payment Followup
================

There's a growing trend of customers paying bills later and later.
Therefore, collectors must make every effort to collect money and
collect it faster.

Odoo will help you define your follow-up strategy. To remind customers
to pay their outstanding invoices, you can define different actions
depending on how severely overdue the customer is. These actions are
bundled into follow-up levels that are triggered when the due date of an
invoice has passed a certain number of days. If there are other overdue
invoices for the same customer, the actions of the most overdue invoice
will be executed.

By going to the customer record and diving into the "Overdue Payments"
you will see the follow-up message and all overdue invoices.

.. image:: ./media/invoice11.png
   :align: center

.. image:: ./media/invoice12.png
   :align: center

Customer aging report:
----------------------

The customer aging report will be an additional key tool for the
collector to understand the customer credit issues, and to prioritize
their work.

Use the aging report to determine which customers are overdue and begin
your collection efforts.

.. image:: ./media/invoice13.png
   :align: center

Profit and loss
===============

The Profit and Loss statement displays your revenue and expense details.
Ultimately, this gives you a clear image of your Net Profit and Loss. It
is sometimes referred to as the "Income Statement" or "Statement of
Revenues and Expenses."

.. image:: ./media/invoice14.png
   :align: center

Balance sheet
=============

The balance sheet summarizes the your company's liabilities,
assets and equity at a specific moment in time.

.. image:: ./media/invoice15.png
   :align: center

.. image:: ./media/invoice16.png
   :align: center

For example, if you manage your inventory using the perpetual accounting
method, you should expect a decrease in account "Current Assets" once
the material has been shipped to the customer.