Odoo Invoice

Odoo Invoice

What the difference between Invoices and bills


An invoice is a document given to the buyer by the seller to collect payment. It includes the cost of the products purchased or services rendered to the buyer. Invoices can also serve as legal records, if they contain the names of the seller and client, description and price of goods or services, and the terms of payment. An invoices serves the following functions:

  • An invoice is a business transaction that requests payment from a client for services rendered

  • An invoice is issued before payment is received, as a way of requesting payment by a specific deadline

  • An invoice provides the business with a record of the goods or services sold, for recordkeeping purpose

In odoo to create an invoice you can make sale order first, after the status  become sale order so the next step you can make an invoice by pressing the create invoice button however before making an invoice make sure the availability of the goods.

You can add a down payment with type of percentage or fixed amount, then you can press the create invoice button.

Then a new invoice will be created on the smart button, click the invoice smart button.

This is an invoice detail which is still in draft status meaning you can edit the invoice before pressing the post button.

Preview is used to view invoices from the customer's side, you can also print the invoice.

Cancel entry used to cancel the invoice

The next process is payment, you can press register payment button

Fill the journal, amount, date and memo then press validate.

In addition to the above methods, you can also easily create invoices without making a sales order first, by opening an inventory or accounting application and then going to the Customers > Invoice menu.

You will see a list of invoices that have been created. You can create an invoice by pressing the create button.


A bill is an invoice received from a supplier, on which the supplier states the amount owned by the recipient. This document outlining the amount a customer owes for goods received or services rendered and is printed or written out as a statement of the charges. A bill serves the following functions:

  • A bill is issued before payment is sent

  • A bill serves as a record for the customer of the goods or services provided by a business and acts as a reminder of payments owing

  • When you receive an invoice from a supplier as a customer, you enter it in your books as a bill that must be paid 

To make a bill you can make a purchase first, open the purchase application and then create a new RFQ. Enter the vendor and product to be purchased, when finished click confirm order.

After the status become purchase order next you can make a bill by pressing create bill, but make sure the number of goods received is in accordance with the request.

This is a detail of the bill that contains vendor name, bill date, list of purchased products and other important information. While the status still draft you still be able edit this bill. Click the post button to change the status to posted.

The next step is payment, press register payment button

Enter the amount to be paid in the amount field, then click validate

In addition to the above method, you can also create a bill without having to make a purchase first, the way is by going to the Vendors > Bills menu in the inventory or accounting application.

Then will appear the list of bills that have been created before. To create a new bill you need to press create button.


An invoice and a bill convey the same information about the amount owed as part of a business transaction, but an invoice is generated by the business providing a service, and the customer receiving the invoice records it as a bill to be paid. The point is that what the seller issues is an invoice while what the buyer receives is a bill.

What is a Credit Note ?

A credit note is a document issued by a seller to a buyer to notify that credit is being applied to their account. An example of a case is when a customer is interested in the car we sell and he chose the car a few days ago, but he realized that the car was too big for his garage, so he canceled it.

You may issue a credit note when there’s a need to cancel all or part of an invoice for a variety reasons, including :

  • Changes to an order after an invoice is issued

  • Goods returned or services rejected

  • Goods were damaged during shipping

  • Pricing mistakes on the original invoice

To create a credit note, you can make a sale order first, go to the sales application and create a new order. For example, we will sell 5 units of Large Cabinet, 12 units of Storage Box and 3 units of Pedal Bin. After the customer and product are filled, press the confirm button.