Martin Trigaux
126 lines
4.1 KiB
ReStructuredText
126 lines
4.1 KiB
ReStructuredText
============================
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How to setup cash discounts?
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============================
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Cash discounts are an incentive (usually a small percentage) that you
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offer to customers in return for paying a bill owed before the scheduled
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due date. If used properly, cash discounts improve the Days Sales
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Outstanding aspect of a business's cash conversion cycle.
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For example, a typical cash discount would be: you offer a 2% discount
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on an invoice due in 30 days if the customer were to pay within the
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first 5 days of receiving the invoice.
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Configuration
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=============
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Payment terms
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-------------
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In order to manage cash discounts, we will use the payment terms
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concept of Odoo (From the Accounting module, go to :menuselection:`Configuration -->
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Management --> Payment terms --> Create`).
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Let's start with the above example: a 2% discount on an invoice due in
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30 days if the customer were to pay within the first 5 days.
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A typical payment term of 30 days would have only one installment:
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balance in 30 days. But, in order to configure the cash discount, you
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can configure the payment term with two installments:
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- 98% within 5 days
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- balance within 30 days
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.. image:: ./media/discount01.png
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:align: center
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To make it clear that it's not a payment term but a cash discount, don't
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forget to set a clear description that will appear on the invoice:
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Invoice is due within 30 days, but you can benefit from a 2% cash
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discount if you pay within 5 days.
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Bank reconciliation model
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-------------------------
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In order to speed up the bank reconciliation process, we can create a
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model of entry for all cash discounts. To do that, from the Accounting
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application dashboard, click on the "More" link on the bank and choose
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the option "Reconciliation Models".
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.. image:: ./media/discount02.png
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:align: center
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Create a new model for cash discounts as follow:
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- **Button Label**: Cash Discount
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- **Account**: Cash Discount (according to your country)
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- **Amount Type**: Percentage
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- **Amount**: 100%
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- **Taxes**: depending on your country, you may put a tax on the cash
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discount if taxes have to be deduced
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.. image:: ./media/discount03.png
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:align: center
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.. tip::
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Even if it's a 2% cash discount, set a 100% amount on the reconciliation model
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as it means 100% of the remaining balance (the 2%). You can use the same
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reconciliation model for all your cash discount. No need to create a model
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per payment term.
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Creating an invoice with a cash discount
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========================================
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When you create a customer invoice, set the right payment term "30 days,
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2% cash discount" right after having selected the customer.
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.. image:: ./media/discount04.png
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:align: center
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Once the invoice is validated, Odoo will automatically split the account
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receivable part of the journal entry with two installments having a
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different due date: 98% within 5 days, 2% within 30 days.
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.. image:: ./media/discount05.png
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:align: center
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Payment
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=======
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Paying the invoice with a cash discount
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---------------------------------------
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If the customer pays with a cash discount, when processing the bank
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statement, you will match the payment (98%) with the related line in the
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journal entry.
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.. image:: ./media/discount06.png
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:align: center
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As you can see in the above screenshot, when selecting the customer, you
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also see the 2% remaining of 3$. If you want to accept the cash discount
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(if the customer paid within the 5 days), you can click on this line
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with 2%, click on "Open Balance", and select your "Cash Discount"
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reconciliation model. That way, the invoice is marked as fully paid.
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.. note::
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from now on, matching the remaining 2% has to be done manually. In the future,
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we plan to automate the reconciliation of the 2% if the 98% are paid on time.
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Paying the invoice in full
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--------------------------
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If the customer pays the invoice fully, without benefiting from the cash
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discount, you will reconcile the payment (in full) with the two lines
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from the invoice (98% and 2%). Just click on the two lines to match them
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with the payment.
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.. image:: ./media/discount07.png
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:align: center
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.. seealso::
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* :doc:`overview`
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