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Event Odoo Experience 2021 starts on October 6, 2021 at 2:00:00 PM +0200
Using Subscriptions and deferred revenue models to manage warranty extensions and renewals
Functional
Location: Studio 1 - 10/6/21, 2:00 PM - 10/6/21, 2:30 PM (EDT) (30 minutes)

Using Subscriptions and deferred revenue models to manage warranty extensions and renewals
Thomas Arbib Consultant  at Camptocamp France SAS

My name is Thomas Arbib, and I work as an Odoo consultant for Camptocamp (Gold partner) in the Paris office. I started with Odoo six years ago (first project on Odoo 8), and my main areas of expertise are accounting, sales management, marketing, and project management for service companies. I love working on international projects, as I speak French, English, and Chinese, and contributing to the OCA.


By selling physical products, you may increase your revenue by offering warranty extensions and renewals. As they usually last for an additional 12 or 24 months and are invoiced at order, you will most probably end up with revenue covering several periods.

Example:

  • Sale of chemical equipment with a warranty of 12 months
  • The deferred revenue is generated with draft journal entries

Odoo's solution:

Combine the power of Subscriptions to follow the warranty extensions bought by your customers and deferred revenue models to integrate them into your accounting seamlessly.

  • Creation of an account in the P&L for a 12-months warranty
  • Creation of a deferred revenue model, triggering the generation of draft entries in your accounting
  • A sales order for equipment and the 12-months warranty
  • A subscription is created automatically
  • Delivery of the equipment
  • The order is fully invoiced
  • When approaching the end of the warranty, the subscription becomes "to renew," giving a new sale opportunity
  • Renew the warranty, and everything is linked to the same subscription