Payment Terms

Payment terms are rules thart are imposed on customers by suppliers. Payments terms are imposed to ensure that payments are received in a reasonable time frame and/or within the normal cycal of business.

AdvaCare offers two broad payment policies to customers:

1. Incentive based payment policy (New Policy)
2. Non-incentive based payment policy (Old Policy)

Within these two broad bands of payment policies, there are a large number of payment policies (listed below)

Incentive Based Policy

AdvaCare's incentive based policies center around a penalty for late payments. These late payment penalty's are designed to ensure that payments are made on time

Penalties are time based and are as follows:

Non-Incentive Based Policy

No penalties or discounts are granted for early or late payments.

Determining which band a Customer falls in is the domain of the sales department, who have unilateral decision making powers in determining the payment policy.

Creating a New Payment Policy

Go to Accounting -> Configuration -> Payment Terms and click on create

In the description field add the description that is displayed in the sale order and invoice

1. The Terms field define the rules and computation of the invoice
2. The allocation of the "value" and "number of days" fields determines how odoo allocates the revenue or expense to a particular date
3. The polices field determines the computation of any discounts/penalties applied to the invoice

Creation of a new payment policy is only allowed by the accounting manager in consultation with the sales manager.

for further reference: https://www.odoo.com/documentation/user/14.0/accounting/receivables/customer_invoices/payment_terms.html