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Advance Payment on Draft Invoice

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Raza Ali

I am customizing OpenERP for a client. I have a situation where my client needs to pay a vendor in advance but the exact invoice amount is not yet confirmed.

The approach I am thinking of, is to create a supplier invoice (account.invoice and corresponding lines), and invoke the payment wizard on that invoice. I am thinking of overriding any function that prevents payment on draft invoices. Later on when the amounts are final, I can make the changes in account.invoice and lines records.

  1. What adverse accounting/reconciliation effects will this approach have, if any?
  2. Is there any other, better way of doing this?

EDIT: I tried this approach. The draft invoice gets created and i am able to process a payment. But it doesn't show the payment in the payments section of the invoice. The payment is stored as journal entries / account moves only.

After validating invoice, I try to do manual reconcile... I select the invoice line and the payment line in the reconcile screen and do partial reconcile. Now when I go to the invoice payments section, it shows the payment, but it also brings along many other unrelated journal entries thus upsetting the paid total balance.

Please advise.

Thanks

2 Comments
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gunnar
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That is a setting that is happening for almost every invoice/payment in our scenario. Just with customers. We issue a Proforma invoice which is approximate. Customer pays upfront based on this draft. Then, when goods are being delivered the 'real' invoice with the actual values is being created and balance payment has to be done.

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gunnar
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seems one can't edit your own comments ... I forgot to add. I am not using Accounting/invoicing in Odoo yet, but well be needing a workflow for such a setup

1 Answer
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Ray Carnes
Best Answer


1. Create and validate a SUPPLIER PAYMENT for $500.

2. When SUPPLIER INVOICE comes in, create it as usual for $600.

3. Create a new SUPPLIER PAYMENT, you will see the $500 credit, can enter a total payment amount of $100 and apply $500 from the credit.

4. The SUPPLIER INVOICE for $600 is reconciled and closed. The SUPPLIER PAYMENT for $500 is applied and reconciled.


Also, there are modules that manage advance payments:

https://apps.openerp.com/apps/modules/7.0/account_advance_payment/

3 Comments
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Jiju Oommen
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If the vendor has lots of advance payments, the linking would be difficult, isn't it?

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Open Alpha LLC
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We just followed the above solution against three different advanced payments.

It worked perfectly well.

Thank you @Ray Carns for the brief to the point answer.

BR

Nick

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Open Alpha LLC
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BTW it should not be difficult linking. In a way advanced payment is when we know more or less the obligations towards the supplier and we would like to pay an amount in advance.

So basically many advanced payments to the same supplier create a pre-paid pool that gets reconciled with the above mentioned method.

Keep in mind that on "Supplier Payment" creation, the supplier name must be provided, so under Credit only downpayments to the specific supplier are shown.