Billing based on delivered quantity is a crucial invoicing method in project-based businesses. Odoo 18 provides a flexible approach to billing projects where invoices are generated based on manually recorded delivered quantities. This method ensures that clients are charged accurately for completed tasks or delivered services rather than pre-defined contracts or milestones. Since invoices are generated based on actual deliverables, clients can clearly see what they are paying for, which helps minimize billing disputes and strengthens trust.
This blog discusses the setting up and execution of manual billing based on delivered quantities in Odoo 18. This method is particularly useful for businesses that operate on a pay-for-what-you-get basis, such as consulting firms, construction companies, and service providers.
The first step in setting up fixed-price project billing in Odoo is ensuring the project is properly configured. The project should be designed to track all tasks, activities, and associated costs. To create a new project, navigate to the Odoo 18 Project module, then click New from the dashboard.
In the project creation form, enter the project name in the Name field. Enable the Timesheet option to log time spent on tasks, and activate the Billable option to allow invoicing for time and materials. Assign a customer to the project and specify an email alias in the Create tasks by sending an email to the field. This will enable task creation when an email is sent to the designated alias.
After creating the project, add the necessary stages. And create task under the project and say the task has been completed and the customer has to be billed for the completed work. For that, a sale order can be created, and the product can be added for which the delivered quantity can be manually set according to the completed work; for that, navigate to Sales > Products > Products and click New to create a new product.
In the Product form, enter the product name and set the Product Type to Service. Configure the Create to Order option as Task if a task has to be created or else configure it as Nothing. If a task has been given an extra Project field will be added to where the relevant project can be linked. Finally, set the Invoicing Policy to Based on Delivered Quantity (Manual).
To create a sales order, navigate to Orders > Quotations and click the New button to create a new quotation.
Add the customer and other required details, and also add the product. Add the product that was created, the quantity need not be added since the delivered quantity can be manually added and it can be billed to the customer.
The project can be linked to this sale order by adding the project under the Other Info tab. This can be done only if the project has been created for the customer for whom the sale order is created. In this case, the customer is ‘Anita Oliver’.
Then click on the Confirm button to confirm the invoice. Now since the invoicing policy has been set as Based on Delivered Quantity (Manual), the Delivered quantity can be manually set in the sale order.
Here the delivered quantity has been set manually to 5, the same as the quantity. Now the invoice can be created for the delivered quantity.
Click on the Create Invoice button. And select whether it is a regular invoice or if any down payment has been made, it can be selected to create a Draft invoice.
Confirm the invoice, and then the payment can be made. Now go to the Project module and go to the dashboard of the project to view the Revenue.
Also, a sale order can be created for the service for which the service has to be billed to the customer by manually adding the delivered quantity. Then, under the Profitability, the Total Revenue of the project can be viewed and how the revenue was generated. Here, under the Revenue, it can be seen as Timesheets (Billed Manually).
And now, since the project has been billed, the service has to be provided to the customer.
There are several benefits for billing customers using this invoicing policy. This method allows businesses to manually trigger invoices based on actual work completed or services delivered. This flexibility is useful for projects where progress varies or where clients prefer milestone-based billing. With manual control over the invoicing process, there is a reduced risk of billing customers for uncompleted work or missing billable items, ensuring accurate revenue recognition. By invoicing only for completed work, businesses can maintain a steady cash flow. Clients are billed in stages, making it easier for them to approve payments and for the company to manage revenue. Billing projects based on delivered quantities manually in Odoo 18 provides a precise and flexible approach to invoicing. This method ensures that businesses charge their clients only for completed services, improving transparency and revenue management.
To read more about How to Set Milestones With Odoo 17 Project Module, refer to our blog How to Set Milestones With Odoo 17 Project Module.