In Settings / Accounting / eInvoicing / Customer what does the option "Manage customer payments" do?
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It installs the module account_voucher
which simplifies invoice processing and adds many features like Customer/Supplier Payments, Sales/Purchase Receipts and Refunds.
Here is the official module description from source:
Invoicing & Payments by Accounting Voucher & Receipts
The specific and easy-to-use Invoicing system in OpenERP allows you to keep track of your accounting, even when you are not an accountant. It provides an easy way to follow up on your suppliers and customers.
You could use this simplified accounting in case you work with an (external) account to keep your books, and you still want to keep track of payments.
The Invoicing system includes receipts and vouchers (an easy way to keep track of sales and purchases). It also offers you an easy method of registering payments, without having to encode complete abstracts of account.
This official module description does not describe the embedded functionnalities; as such one cannot decide to use it or not. The precise description of the objectives and rationale which have been decided to setup the module would be preferable. :)
You are right, but the question was about the effect of the option, not about the module.