How To Record Down Payment In Odoo 17

The down payment feature is primarily useful in each company as it allows the customer to pay some of the amount in a defined percentage as a down payment to secure and reserve the service and then the customer can pay the remaining amount later. It reflects the commitment towards the product and services that are gonna be purchased.

In Odoo17 as well, we can create an invoice and receive some of the amount as a down payment. Usually, companies request a down payment to minimize the payment risk and commitment of the customer. This down payment functionality is advantageous to attract customers and businesses. Odoo offers two ways to manage the down payments: a fixed amount or a fixed percentage.

Let’s explore the approach to handle down payments in Odoo17:

To manage the down payment in odoo17 the initial step is to set up a sale order.

To do so, let’s dive into the sales module > click on new > add further details

Define related details in the sale order, customer- if the customer referrer is there so we can also define referrer, specific price list, payment terms can be selected, and the product can be added with related quantity and unit price.

Currently, the order is in the draft stage which is why it is showing as a “quotation” stage. We can send the quotation to the customer by clicking on “send by email” when a customer accepts the quotation, the order will be confirmed as a “sales order”.

Then we can click on “create invoice" and a new window will pop-up.

In this window, we can have three options: regular invoice, down payment(percentage) and down payment ( fixed amount). While clicking on a regular invoice a standard invoice would be created with the full amount. To record a down payment in Odoo, we can either use a down payment( percentage) or a down payment(fixed amount).

To record a down payment (percentage), select the option of down payment (percentage) and there we can define the percentage of the amount that would be considered as a down payment amount.

And the invoice worth the amount of the down payment percentage will be created in the draft and we can confirm it. Afterwards, to receive the down payment, we can click on register payment and proceed with the invoice and the invoice status would be changed to “in payment”.

To record a down payment (fixed amount), we can select it while creating an invoice, define the down payment amount and then we can create and view the invoice and to receive the payment we can click on the register payment button.

After the down payment, when we receive the remaining amount, the Odoo will suggest to us the amount to invoice which is deducted from the actual amount minus the early down payment while creating the invoice.

Use-case:

The down payment feature is so versatile. In every industry, this feature can be used as the basic functionality to record a lump sum amount to pre-reserve services or goods and it can be considered as a commitment towards the products.

Suppose we are a company that sells Home appliances. We sold the products with the down payments as customers first need to pay the down payment amount at the time of purchase and then based on payment terms remaining amount can be invoiced.

To do so first we all need to create a sale order for that product and then create an invoice.

Now, we need to create an invoice by clicking on the button “create an invoice”. We can select a down payment(percentage) or down payment(amount) and specify a percentage or amount that can be defined as a down payment.

We can click on “Create Draft Invoice”. A draft invoice can be created where we can see related down payment amounts and product details.

We can confirm the invoice and to register a payment, we can click on “register payment” and create a payment. The invoice status would be changed to “in payment”.

After that, we can do the reconciliation and mark the status of the invoice as paid. Basically to reconcile means to match the payment with invoices.

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We hope this blog comes handy for you while managing your Accounting and Sales in Odoo 17. If you are looking for expert advice, reach out to us today and avail a free consultation!

 

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