Odoo Invoice
What the difference between Invoices and bills
Invoices
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.
Bills
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.
Conclusion
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.
Furthermore, after the status becomes a sale order, you will see the smart button in the upper right corner. Press the button to validate the quantity requested and the amount to be sent.
Enter the done value according to the requested amount, then press validate. Make sure the status is done. After that, return to the previous page. The next step is to create an invoice by pressing Create Invoice.
After new page opens you need to press post button to change invoice status from draft to posted
You will press add credit note first. Then a wizard will appear that displays the credit note form. Note that in the credit method section there are 3 methods, including:
Partial refund
This option will form a draft credit note with the same contents as the original invoice, you can edit the contents of the credit note, for example, eliminating or reducing the number of products.
Full refund
This option will automatically create a credit note as well as perform a reconciliation, so that the credit note will automatically be paid.
Full refund and new draft invoice
This option will create a copy of the original invoice and the status is draft, this option will not create a credit note but instead create a new invoice from a copy of the original invoice.
You can see that a credit note with the name RINV/2022/0036 will be made from the invoice INV/2022/0039. In the first case you choose a partial refund, then you will then get a draft credit note that you can edit, the contents of the product and the amount are the same as the original invoice. For example, the customer wants to return the Storage Box and Large Cabinet.
Then click register payment to make payment
Enter journal, payment method, amount, date and memo and press validate button
When you return to the sale order, the original invoice was one, now it has increased to two. Click the invoice smart button you will find there is one invoice and one credit note
Click the original invoice and you can make another credit note on the same invoice, for example this time we will do a full refund and a new draft invoice
Then a new invoice will be created from a copy of the original invoice and the status is draft, for example, we edit the product list to only be Pedal Bin. Press post and make a payment, the result will be a new invoice with the code INV/2022/0040.
When you return to the sale order and see the invoice, it changes to 4 because the full refund and new draft invoice pad, the system will create an invoice as well as a credit note. When we make another credit note with the partial method, the invoice will only increase by one.
The last one is a full refund, a full refund cannot be used when the invoice has been paid, we have to make a new order, do the process until the invoice is made. Then create a credit note with the full refund method, a credit note will be create and will automatically be paid in full according to the amount ordered. This means it will return the entire order.
Another way we can do is directly create a credit note from the list of invoices that have been made, you can go to the invoice application and choose an invoice. Or the third way is to make a credit note directly from the Customer menu > Credit Note, this method does not need to create an invoice first, aka a credit note that is made not dependent on any invoices.
What is an Account Payment and what is the difference between each payment type ?
When registering a new payment, you must select a customer or vendor, the payment method, and the amount of the payment. The currency of the transaction is defined by the payment method. If the payment refers to a document (sale order, purchase order or invoice), set the reference of this document in the memo field.
Account Payable
A company’s accounts payables comprise amounts it owes to suppliers and other creditors items or services purchased and invoiced for. AP does not include, for example, payroll or long-term debt like a mortgage though it does include payments to long-term debt.
Account Receivable
Accounts receivable are the funds that customers owe your company for products or services that have been invoiced. The total value of all accounts receivable is listed on the balance sheet as current assets and include invoices that clients owe for items or work performed for them on credit.
When the partner type is a vendor, the account used is a payable account, while when the partner type is a customer, the account used is an account receivable.
When the payment method is send money, the account is issued (debit), while when the payment method is receive money, the account receives (credit).
Send money
Create a new payment. The payment type is set to send money. Choose partner key vendor or customer, company automatically will be set to My Company, specify the Amount and add a Memo if you wish. Choose payment method you want (manual or checks)
After that press confirm then select the item journal you will see like this
It can be seen from accounts payable issuing debits and banks accepting credits
Receive money
Create a new payment. The payment type is set to receive money. Choose partner key vendor or customer, company automatically will be set to My Company, specify the Amount and add a Memo if you wish. You cannot choose the payment method.
After that press confirm then select the item journal you will see like this
It can be seen from accounts receivable receiving credits and banks issuing debits
Internal Transfer
An Internal Transfer is moving money from one bank account to another (to withdraw and deposit), or moving money from one bank account to a credit card account (to pay the card) or moving money from petty cash to the bank (or vice versa).
Make an internal transfer payment as shown below, then press confirm.
Then look at the journal items, the following picture explains that the bank issued a debit of 2 dollars, then the liquidity transfer received a credit of 2 dollars, then the liquidity transfer issued a debit, then the bank received a credit.
