diff --git a/accounting/receivables/customer_invoices.rst b/accounting/receivables/customer_invoices.rst index c4abef655..bdcff5de6 100644 --- a/accounting/receivables/customer_invoices.rst +++ b/accounting/receivables/customer_invoices.rst @@ -9,7 +9,6 @@ Customer Invoices customer_invoices/cash_discounts customer_invoices/cash_rounding customer_invoices/payment_terms - customer_invoices/installment_plans customer_invoices/deferred_revenues customer_invoices/credit_notes customer_invoices/epc_qr_code diff --git a/accounting/receivables/customer_invoices/installment_plans.rst b/accounting/receivables/customer_invoices/installment_plans.rst deleted file mode 100644 index 67c9556eb..000000000 --- a/accounting/receivables/customer_invoices/installment_plans.rst +++ /dev/null @@ -1,83 +0,0 @@ -======================================================= -How to define an installment plan on customer invoices? -======================================================= -In order to manage installment plans related to an invoice, you should -use payment terms in Odoo. They apply on both customer invoices and -supplier bills. - -Example, for a specific invoice: - -- Pay 50% within 10 days -- Pay the remaining balance within 30 days - -.. note:: - Payment terms are not to be confused with a payment in several parts. If, - for a specific order, you invoice the customer in two parts, that's not a - payment term but an invoice policy. - -Configuration -============= - -Configure your usual installment plans from the application :menuselection:`Accounting --> -Configuration --> Payment Terms`. - -A payment term may have one line (eg: 21 days) or several lines (10% -within 3 days and the balance within 21 days). If you create a payment -term with several lines, make sure the latest one is the balance. (avoid -doing 50% in 10 days and 50% in 21 days because, with the rounding, it -may not compute exactly 100%) - -.. image:: ./media/installment01.png - :align: center - -.. tip:: - The description of the payment term will appear on the invoice or the sale order. - -Payment terms for customers -=========================== - -You can set payment terms on: - -- **a customer**: the payment term automatically applies on new sales - orders or invoices for this customer. Set payment terms on - customers if you grant this payment term for all future orders - for this customer. - -- **a quotation**: the payment term will apply on all invoices created - from this quotation or sale order, but not on other quotations - -- **an invoice**: the payment term will apply on this invoice only - -If an invoice contains a payment term, the journal entry related to the -invoice is different. Without payment term, an invoice of $100 will -produce the following journal entry (for the clarity of the example, we -did not set any tax on the invoice): - -+----------------------+------------+---------+----------+ -| Account | Due date | Debit | Credit | -+======================+============+=========+==========+ -| Account Receivable | | 100 | | -+----------------------+------------+---------+----------+ -| Income | | | 100 | -+----------------------+------------+---------+----------+ - -If you do an invoice the 1st of January with a payment term of 10% -within 3 days and the balance within 30 days, you get the following -journal entry: - -+----------------------+------------+---------+----------+ -| Account | Due date | Debit | Credit | -+======================+============+=========+==========+ -| Account Receivable | Jan 03 | 10 | | -+----------------------+------------+---------+----------+ -| Account Receivable | Jan 30 | 90 | | -+----------------------+------------+---------+----------+ -| Income | | | 100 | -+----------------------+------------+---------+----------+ - -On the customer statement, you will see two lines with different du dates. To get the customer -statement, use the menu :menuselection:`Sales --> Customers Statement`. - -.. seealso:: - - :doc:`overview` - - :doc:`payment_terms` diff --git a/accounting/receivables/customer_invoices/media/installment01.png b/accounting/receivables/customer_invoices/media/installment01.png deleted file mode 100644 index 437dc4b62..000000000 Binary files a/accounting/receivables/customer_invoices/media/installment01.png and /dev/null differ diff --git a/accounting/receivables/customer_invoices/media/payment_terms_configuration.png b/accounting/receivables/customer_invoices/media/payment_terms_configuration.png new file mode 100644 index 000000000..4cbb63c3d Binary files /dev/null and b/accounting/receivables/customer_invoices/media/payment_terms_configuration.png differ diff --git a/accounting/receivables/customer_invoices/media/payment_terms_journal_entry.png b/accounting/receivables/customer_invoices/media/payment_terms_journal_entry.png new file mode 100644 index 000000000..388d00f5a Binary files /dev/null and b/accounting/receivables/customer_invoices/media/payment_terms_journal_entry.png differ diff --git a/accounting/receivables/customer_invoices/payment_terms.rst b/accounting/receivables/customer_invoices/payment_terms.rst index f4a372637..7ed8047ab 100644 --- a/accounting/receivables/customer_invoices/payment_terms.rst +++ b/accounting/receivables/customer_invoices/payment_terms.rst @@ -1,96 +1,109 @@ -================================== -How to setup and use payment terms -================================== +=================================== +Payment Terms and Installment Plans +=================================== -Payment terms define the conditions to pay an invoice. They apply on -both customer invoices and supplier bills. +**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: -Example, for a specific invoice: +- The due date +- Some discounts +- Any other condition on the payment -- Pay 50% within 10 days +Defining Payment Terms automates the computation of payments due dates, both for invoices and bills. +This is particularly helpful in managing installment plans. -- Pay the remaining balance within 30 days +An **installment plan** allows the customers to pay an invoice in parts, with the amounts and +payment dates defined beforehand by the seller. -.. note:: Payment terms are different from invoicing in several areas. If, - for a specific order, you invoice the customer in two parts, that's not - a payment term but invoice conditions. +**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. + +.. 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. Configuration ============= -Configure your usual payment terms from the Configuration menu of the -Account application. The description of the payment term is the one that -appear on the invoice or the sale order. +Go to :menuselection:`Accounting --> Configuration --> Payment Terms` and click on *Create*. -A payment term may have one line (ex: 21 days) or several lines (10% -within 3 days and the balance within 21 days). If you create a payment -term with several lines, be sure the latest one is the balance. (avoid -doing 50% in 10 days and 50% in 21 days because, with the rounding, it -may not do exactly 100%) +The **Description on the Invoice** is the displayed text on a sale order, invoice, or bill. -.. todo:: screenshot payment term forms, after QDP have commited the change - planned on this object +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. + +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% 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_configuration.png + :align: center + :alt: Example of payment terms. The last line is the balance due the 31st of the following month. Using Payment Terms =================== -Payment terms for customers ---------------------------- +Payment Terms can be defined with the **Payment Terms** field on: -Payment terms can be set on: +- | **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. +- | **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. -- **a customer**: to apply this payment term automatically on new - sale orders or invoices for this customer. Set payment terms on - customers if you grant this payment term for all future orders of - this customer. +Journal Entries +=============== +Invoices with specific Payment Terms generate different *Journal Entries*, with one *Journal Item* +for each different *Due Date* computed. -- **a quotation**: to apply this payment term on all invoices - created from this quotation or sale order, but not on other - quotations +This makes for easier *Follow-ups* and *Reconciliation* since Odoo takes each due date into account, +rather than just the balance due date. -- **an invoice**: to apply the payment term on this invoice only +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. -If an invoice has a payment term, the journal entry related to the -invoice is different. Without payment term or tax, an invoice of $100 -will produce this journal entry: +.. image:: media/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. -+----------------------+------------+---------+----------+ -| Account | Due date | Debit | Credit | -+======================+============+=========+==========+ -| Account Receivable | | 100 | | -+----------------------+------------+---------+----------+ -| Income | | | 100 | -+----------------------+------------+---------+----------+ +The $1000 debited on the Account Receivable is split into two distinct *Journal Items*. Both of +them have their own **Due Date**. -If you do an invoice the 1st of January with a payment term of 10% -within 3 days and the balance within 30 days, you get the following -journal entry: ++----------------------+-------------+---------+---------+ +| 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 | Jan 03 | 10 | | -+----------------------+------------+---------+----------+ -| Account Receivable | Jan 30 | 90 | | -+----------------------+------------+---------+----------+ -| Income | | | 100 | -+----------------------+------------+---------+----------+ - -In the customer statement, you will see two lines with different due -dates. - -Payment terms for vendor bills ------------------------------- - -The easiest way to manage payment terms for vendor bills is to record a -due date on the bill. You don't need to assign a payment term, just the -due date is enough. - -But if you need to manage vendor terms with several installments, you -can still use payment terms, exactly like in customer invoices. If you -set a payment term on the vendor bill, you don't need to set a due date. -The exact due date for all installments will be automatically created. +This allows for easier reconciliation and to accurately follow up late payments. .. seealso:: - - :doc:`cash_discounts` + - :doc:`cash_discounts` + - `Odoo Learn: Terms and Conditions (T&C) and Payment Terms `_ \ No newline at end of file