Advance payment for the sales before delivery !

OpenERP 7.0 released with with the lots of improvements, one of them is to manage the way of advance payment before delivery on the sales order. It is different then managing the accounting payment terms.

In this post I will show you how you can control invoicing policy and create an advance invoice based on sales according to business demand.

In order to understand lets create an sales order where we are selling time and material in one sale order.

Sale time and material
Sale time and material

In some of the case you have to create an invoice based on the payment terms, as customer does not allow you to have a full invoice upfront with accounting payment terms, or in some of the country where you have to pay the tax based on the confirmed invoice. In such cases better to create an invoice based on the advance payment received, so you have to pay tax based on the payment and not based on the full invoice.

In order to create an invoice against advance payment, you have two options either select percentage of the payment or select an fixed payment based on what you received from customer as an advance. Below is an option you have to select if you receive advance in terms of % from customer.

Advance invoice of 20%
Advance invoice of 20%

If you fixed amount from customer then please select “Fixed price (deposit)” to encode the advance payment from customer as below.

Fixed amount received as an advance
Fixed amount received as an advance

Enjoy video below to understand the full flow of advance payment for the sales order before delivery, in this video I received 20% advance from customer.

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