Overview
Payment terms in Odoo 19 define when invoices are due and how payments can be split into installments. They automatically calculate due dates on invoices and can include early payment discounts. Payment terms are managed through the account.payment.term model and applied to both customer invoices and vendor bills.
Prerequisites
- Odoo 19 with Accounting module installed
- Accounting Manager or Administrator access
Step 1: Access Payment Terms
Navigate to Accounting > Configuration > Payment Terms. Odoo provides several default terms like "Immediate Payment" and "30 Days". You can modify these or create new ones.
Step 2: Create a New Payment Term
Click New and configure:
- Payment Terms — Descriptive name (e.g., "Net 30", "2/10 Net 30", "50% Now, 50% in 30 Days")
- Description on Invoice — Text shown to customers on the invoice (e.g., "Payment is due within 30 days")
- Display terms in — Show the terms in number of days or as a specific date
Step 3: Configure Term Lines
Each payment term has one or more lines that define how the amount is split:
Simple Net Terms
| Type | Value | Due Days |
|---|---|---|
| Balance | 100% | 30 days after invoice date |
Installment Plan
| Type | Value | Due Days |
|---|---|---|
| Percent | 50% | Immediately |
| Balance | 50% | 30 days after invoice date |
2/10 Net 30 (Early Payment Discount)
| Type | Value | Due Days | Discount |
|---|---|---|---|
| Percent | 100% | 10 days | 2% discount |
| Balance | 100% | 30 days | No discount |
The early payment discount configuration encourages customers to pay early by offering a percentage reduction.
Step 4: Configure Line Details
For each line, set:
- Type — Percent (fixed percentage of total), Fixed Amount, or Balance (remainder)
- Value — Percentage or fixed amount
- Due Type — Days after invoice date, Days after end of invoice month, Day of following month, Day of current month
- Number of Days — Days to add based on the due type selection
- Early Payment Discount (%) — Optional discount for early payment
- Discount Days — Number of days within which the discount applies
Step 5: Set Default Payment Terms
Configure company-wide defaults under Accounting > Configuration > Settings:
- Default Customer Payment Term — Applied to all new customer invoices
- Default Vendor Payment Term — Applied to all new vendor bills
You can override the default on individual customer or vendor records via their Accounting tab.
Step 6: Assign Payment Terms to Partners
Open a customer or vendor record and go to the Sales & Purchases tab:
- Set Customer Payment Terms for this specific partner
- Set Vendor Payment Terms for bills received from this vendor
These partner-level terms override the company default when creating invoices or bills for that partner.
Step 7: Verify on Invoices
Create a test invoice and verify:
- The due date calculates correctly based on the payment term
- For installment plans, the Installments tab shows the correct split with individual due dates
- Early payment discounts display on the invoice and portal
Best Practices
- Use "Net 30" or "Net 60" for most B2B relationships
- Offer early payment discounts (2/10 Net 30) to improve cash flow
- Use installment plans for large orders to reduce customer payment burden
- Review aged receivable reports regularly to monitor compliance with payment terms
- The last line should always be type "Balance" to capture any rounding differences