A customer statement is a document delivered by a business to its customer that summarizes the financial transactions that transpired between the two parties over a specified time period, usually a month. It gives a detailed picture of the customer's outstanding balance, payments made, and any modifications, such as credits or refunds. This statement is an important tool for tracking and managing accounts since it keeps both businesses and customers informed about the current health of their financial relationship.
Customer statements are essential for establishing a smooth financial relationship between businesses and their customers since they ensure both parties have a clear grasp of existing balances and previous transactions. The main purpose of this customer statement is to keep a clear record. It keeps an official record of all transactions (invoices, payments, and adjustments) between a company and its customers. This ensures transparency and allows both parties to keep accurate records. Customers' bills frequently feature outstanding amounts and due dates, which serve as reminders to make timely payments and avoid late fees or penalties. Customer statements help businesses handle accounts receivable, monitor cash flow, and guarantee that payments are received on schedule. Customers can use them to monitor their own expenses and verify they are paying the correct amounts. A well-designed and clear statement can enhance the customer experience by creating trust, allowing customers to better understand their financial obligations and manage their accounts.
For example, a construction company providing services on a project basis may have multiple clients and complex payment schedules. By generating Customer Statements regularly, they can keep track of outstanding invoices and payments, ensuring that clients are aware of overdue amounts and any credits or adjustments that have been made. This prevents payment delays and fosters better communication with customers, ultimately leading to smoother cash flow management.
In essence, Customer Statements in Odoo provide businesses with a tool to maintain financial transparency, improve communication with customers, and streamline accounts receivable processes.
In Odoo 18, this customer statement is a newly introduced feature. On moving to the Accounting module, there will be a Customer menu, on clicking this main menu, there will be a Customers sub-menu.
On clicking this menu will be redirected to a list of customers in a Kanban view. To get the customer statement of each customer, select the customer for whom the customer statement is needed.
As shown in the image above, when a customer’s page is opened, there will be a ‘Customer statement’ smart tab.
On clicking the action button in the customer form, there are an option ‘Open customers statements’. This feature can also be used to get the Customer statement of that specific customer. The total balance of the customer is visible from the Customer Statement smart tab. Once the customer statement is opened, it will give the customer statement.
There are some default filters added to this report: Accounts, which are the account types in which the transactions are made by the customer, then the partner filter, the entries status, currency, etc. Here, as we select the customer statement for the partner Audrey Peterson, Odoo automatically adds the partner filter as Audrey Peterson, as shown in the screenshot below.
Then the next is the date filter, in which a main feature is included in the customer statement. For a customer statement, it is essential to set a date or a period.
On clicking this calendar icon, Odoo 18 provides an option to add a date filter. Here, we can add a month, quarter, year, or even a custom date. Here in the screenshot above, as per the added custom date, the customer statement has been reduced to that specific period. Here, this customer statement is automatically generated by Odoo. Even without using this customer statement feature, you can easily generate a customer statement from the Partner Ledger report in Odoo. For that, move to the Select the Partner ledger report sub-menu from the Reporting menu of the Accounting application.
On clicking the partner ledger, all the partner's statements will be listed. To get the statement of each customer, in the Partner filter field, add the partner for whom you want a customer statement.
Here, in the screenshot above, a partner filter is added to the Odoo 18 partner ledger, which will give that partner statement or a customer statement.
The Customer Statement feature in Odoo 18 offers businesses a full, organized view of all customer transactions over a specified time period. This feature is essential for managing relationships with customers, tracking payments, and keeping financial records correct and up to date. Over time, invoices are raised, and payments are made. The Customer Statement provides an overview of the payments received, outstanding amounts, and due dates, helping both the business and the customer track the financial relationship.
For businesses managing multiple clients and numerous transactions, the Customer Statement can act as a reminder to customers about their unpaid invoices or upcoming due dates. This helps the business ensure timely payments, improving cash flow and reducing the risk of late payments.
To read more about An Overview of Odoo 17 Accounting Reports, refer to our blog An Overview of Odoo 17 Accounting Reports.