Guide: Advance Account Payment

Guide: Advance Account Payment

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Overview

This module enhances Odoo's accounting functionality by enabling the management of advance payments for both customers and vendors. Users can mark specific accounts for advance payments, track these payments through journal entries, and apply. Key features include the ability to define incoming and outgoing accounts for advance payments, automatic reconciliation, and seamless integration with existing accounting workflows. This module simplifies and streamlines the handling of advance payments in your Odoo system.

Hot Features

◆ Automatic Advance Payment Allocation

◆ Advanced Customer & Vendor Payments

◆ Easy Advance Payment Account Setup

◆ Auto Reconciliation for Advance Payments

◆ Advance Payment Returns Support

Features

◆ Supports advance payments for both customer invoice and vendor bills. 

◆ Enables easy setup of incoming and outgoing accounts for advance payments. 

◆ Automatically reconciles advance payments with open invoices, reducing manual effort and potential errors. 

◆ Also supports return advance payments for both customer invoice and vendor bills. 

◆ Multiple advance payments can be applied to multiple invoices/bills.

Work Flow

• Add an (Advance Payment?)boolean field to the Chart of Accounts. Accounts in which that field is true will be used for advance payment. Additionally, create new accounts specifically for customer and vendor advance payments.

• Create new Journal for Advance Payments.

• Add new configuration in accounting settings, and set Default Configuration for Advance Payments.





Customer Invoice Payment

• Add new menu name Advance Payments under the Customer menu.

• Choose the Payment Amount, Payment Journal, and Customer. When the customer has made payment, specify the Payment Date as well. Unless you need to modify it, the default configuration that you established for the advance payment account will be displayed. In order for the advance payment to be posted, save it as a draft or confirm it.

• Posted advance payment can now be used to apply advance payments on invoices.

• When an advance payment is posted, a journal entry will be created.

• Add (Apply Advance Payment)button in Customer form view. On click this (Apply Advance Payment)button open a Advance Payment Wizard.

• Click on the (Apply Advance Payment) button and the Advance Payment Wizard will open. And click on Apply button apply payment for invoice.

• The chosen advance payments will be added to the Advance Payments tab when you click the wizard's Apply button.

• When applied on the invoice, payment will be shown below the invoice Total and in Advance Payments tab.

• Applying an advance payment to invoices will generate a journal entry, where the accounts used are based on the invoice's account and the advance payment account from the payment. The amount recorded (as a debit or credit) will be the total of all advance payments applied.





Vendor Bill Payment

• Add new menu name Advance Payments under the Vendor menu.

• Choose the Payment Amount, Payment Journal, and Vendor. When the vendor has made payment, specify the Payment Date as well. Unless you need to modify it, the default configuration that you established for the advance payment account will be displayed. In order for the advance payment to be posted, save it as a draft or confirm it.

• Posted advance payment can now be used to apply advance payments on bills.

• When an advance payment is posted, a journal entry will be created.

• Add (Apply Advance Payment)button in Vendor form view. On click this (Apply Advance Payment)button open a Advance Payment Wizard.

• Click on the (Apply Advance Payment) button and the Advance Payment Wizard will open. And click on Apply button apply payment for bills.

• The chosen advance payments will be added to the Advance Payments tab when you click the wizard's Apply button.

• When applied on the bills, payment will be shown below the bills Total and in Advance Payments tab.

• Applying an advance payment to bills will generate a journal entry, where the accounts used are based on the bill's account and the advance payment account from the payment. The amount recorded (as a debit or credit) will be the total of all advance payments applied.





Return Advance Payment

• Add (Return Advance Payment)button in Advance Payment form view. Click on the (Return Advance Payment) button, and your advance payment is returned. Note that this button will be shown only if there is amount to return.

• Enter the amount to be refunded, the return date, and journal. Confirm the payment to process the refund for the advance payment. The posted refund will be reconciled with the original advance payment.

• When an advance payment is returned, a journal entry will be created.