How to create Payment Terms in Odoo 12
A Payment Term is an agreement between the buyer and selling on how much money will be paid in that time. It’s essential that your financial picture matches your business goals. Payment Terms apply to both customer invoices and supplier bills. The payment term is a time period that is used to define and calculate payment installments and their respective dates. i.e, 30 percent in advance and the balance in 10 days means that the customer has to pay 30 percent on confirmation of invoice and the remaining 70 percent within 30 days from the date of invoice. Now you can set different terms in Odoo and use it for both customer bills and vendor bills.
Now Lets’ see how to create and use Payment Terms in Odoo:
Go to Accounting ->Configuration ->Management ->Payment Terms
At that time you can create a new payment term by clicking the create button.
First of all, you have to fill the following details like Payterm terms, description for the invoice. This description will be displayed in the invoice or sale order. Now you are creating a new payment term is ‘30 % advance in 5 days and balance in 15 days’.
At that time you can add term details by click on Add an item button. Please note that the last line’s computation type should be ‘Balance’ to ensure that the whole amount will be allocated. On the other hand, can’t save the newly created payment term and show a warning.
At that time you can see that 3 term types such as:
Due Date Computation: The basis by which the due date for the Payment Term is to be calculated. You can choose from the following items in the drop-down menu:
- Days after: Enables you to manually select a number of “Days after” the due date should be set to.
- Days following the end of the invoice month: Enables you to manually select the number of “Days following the end of the invoice month” the due date should be set to.
- Last day of the following month: Enables you to select the number of “Last day of the following month” the due date should be set to.
- Last day of the current month: Sets the due date to the last day of the current month.