Odoo 16 Community Book

Payment Terms

In order to manage transactions smoothly, companies often choose multiple payment methods and payment providers for their business. No matter what payment method you associate with your business, it is essential to define appropriate payment terms to get paid within a predictable date. Payment terms play a crucial role in setting conditions for payments which is beneficial to keep the transactions on track. It is possible to create multiple payment terms in the Odoo Invoicing module. These payment terms can be used while configuring new bills, invoices, or agreements in Odoo.

You can access the Payment Terms platform from the Configuration menu of the Invoicing module. The window will display pre-configured payment terms in your system.

To edit one of the available payment terms, you can click on the respective one. You can select a suitable view for this platform from the given options.

You can click on the New button to get the new creation window. The form view of the payment term creation window is shown below.

In the given space, mention the new Payment Term. The details you add in the Description on the Invoice will provide payment term explanation for customers. In the Company field, mention your company name. Activating the Display terms on invoices will display payment deadlines and respective due amounts on invoices.

The terms for this payment can be added in the window by using the ‘Add a Line’ button. The list will show the Due Type, Value, Months, Days, End of Month, Days after the End of Month, Discount, and Discount Days. The Due Type can be Balance, Percent, or Fixed Amount. The last line's computation type should be "Balance" to ensure that the whole amount will be allocated. You can create new payment terms by following this method.