Our Newest Odoo App: Process Payments with Discounts

Our Newest Odoo App: Process Payments with Discounts

The Process Payments with Discounts app allows companies to give customers a discount for early payments. The discount can be applied to a single invoice or to multiple invoices at once.

Installing

Choose Default Accounts

  • Choose default accounts for payment difference (Optional):
    • Accounting > Configuration > Settings : Invoicing & Payments
    • Customer Invoices/Vendor Bills

Create Payment Terms

  • Create Payment Term(s) for Cash Discounts:
    • Accounting > Configuration > Management > Payment Terms

    • Current Restrictions: Payment Term must have two lines
      • The first line can be “Fixed Amount” or “Percentage”, but it must have “Discount Remainder if Paid” checked.
      • The second line should be “Balance” and “Value” of zero.
      • “Number of days” should be set for each line; it determines the date the invoice should be paid by in order to receive the discount.
    • Example:
      • Name: 10%/10 Days Net 30

      • Balance due within 30 days. If invoice is paid within 10 days, it receives a 10% discount.

      • Payment Term Line 1:
        • Due Type: Percent
        • Value: 90.0
        • Discount Remainder if Paid?: Yes
        • Number of Days: 10
        • Option: Day(s) after the invoice date
      • Payment Term Line 2:
        • Due Type: Balance
        • Value: 0
        • Discount Remainder if Paid?: No
        • Number of Days: 30
        • Option: Day(s) after the invoice date

Usage

Processing a Single Invoice with Cash Discounts

  • Create a Customer Invoice or Vendor Bill
    • Payment Term (Other Info): Your Cash Discount Terms
  • Validate Invoice
    • Notice: Below the Totals section, there is a new field, Amount Due (Discounted), which is the payoff amount with discount taken off of the balance.
    • You can view the Journal Entry to see the breakdown of the Journal Items amounts and due dates. This is core Odoo behavior, determined by the Payment Term setup.
  • Register Payment
    • If the invoice is still eligible for the discount:
      • “Payment Amount” defaults to the “Amount Due (Discounted)”
      • “Payment Difference” defaults to “Mark invoice as fully paid”
      • “Post Difference in” defaults to “Default Payment Difference Account” for invoice type (if set in Accounting > Configuration > Settings)

Processing Multiple Invoices with Cash Discounts

  • Create multiple Customer Invoices or Vendor Bills for the same partner
    • Payment Term (Other Info): Your Cash Discount Terms

    • Note:
      • Payment Terms can be different on each invoice.
      • Payment Terms do not all need to be cash discounts for the discounts to apply.
  • Validate Invoice
    • Notice: Below the Totals section, there is a new field, Amount Due (Discounted), which is the payoff amount with discount taken off of the balance.
    • You can view the Journal Entry to see the breakdown of the Journal Items amounts and due dates. This is core Odoo behavior, determined by the Payment Term setup.
  • Pay Multiple Invoices at once (for the same partner)
    • View the invoices in a list, select the invoices you want to pay (via checkboxes)

    • At the top middle of the screen, click Action > Register Payment

    • If any of the invoices are still eligible for a discount:
      • “Payment Amount” defaults to the “Amount Due (Discounted)”
      • “Payment Difference” defaults to “Mark invoice as fully paid”
      • “Post Difference in” defaults to “Default Payment Difference Account” for invoice type (if set in Accounting > Configuration > Settings
    • Note: Invoices that are not eligible for discounts will still be charged the full amount.

To learn more and access our demo site, click here.

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