The AR Collection Challenge
Getting invoices paid on time is critical for cash flow. The invoice-to-payment workflow in Odoo covers everything from generating an invoice through collecting and reconciling the payment. Odoo Accounting provides automated follow-ups, online payment options, and aging analysis to help you reduce days sales outstanding (DSO) and maintain healthy cash flow.
Invoice Generation
Invoices in Odoo originate from several sources. Sales order invoicing creates invoices from confirmed orders based on your invoicing policy (ordered quantities or delivered quantities). Timesheet invoicing bills customers based on hours logged against projects. Recurring invoicing generates periodic invoices for subscriptions and retainers. Manual invoicing handles one-off charges outside the normal sales flow.
Invoice Content
Each invoice includes the customer name and address, invoice number (from a configurable sequence), invoice date and due date (based on payment terms), line items with descriptions and amounts, applicable taxes, payment instructions, and an optional QR code for mobile payment. Odoo supports customized invoice templates with your company branding.
Invoice Delivery
Odoo delivers invoices through multiple channels. Email is the most common — Odoo sends a PDF invoice attached to a branded email with a portal link. The customer portal lets customers view invoices, download PDFs, and pay online. Printed invoices can be generated for customers who require physical mail. EDI (Electronic Data Interchange) formats like Peppol, FACe, and CFDI handle B2B invoice exchange in specific countries.
Payment Options
The more payment options you offer, the faster customers pay. Odoo supports online payment directly from the invoice email or portal (Stripe, PayPal, Authorize.net), bank transfer with pre-filled reference numbers, direct debit (SEPA mandates for European customers), credit card processing, and check payment recording. Online payment is the fastest — customers click a button in the invoice email and pay immediately with their card.
Payment Follow-Up
Automated follow-ups are essential for collecting overdue invoices. Odoo allows you to configure follow-up levels with escalating urgency.
| Level | Trigger | Action | Tone |
|---|---|---|---|
| 1 | Due date reached | Friendly reminder email | Polite |
| 2 | 7 days overdue | Second reminder email | Firm |
| 3 | 14 days overdue | Phone call + email | Urgent |
| 4 | 30 days overdue | Formal letter | Final notice |
| 5 | 60 days overdue | Collections referral | Legal |
Each level has an email template with appropriate language. Follow-ups run automatically on a schedule, but the accounting team can review and manually override before sending.
Payment Reconciliation
When payments arrive, they must be matched to the correct invoices. Odoo's bank reconciliation interface matches incoming bank transactions to open invoices using reference numbers, amounts, and customer names. Exact matches are proposed automatically. Partial payments are applied to the invoice, leaving the remaining balance open. Overpayments can be applied as credit for future invoices or refunded.
Aging Analysis
The accounts receivable aging report shows outstanding balances grouped by age: current, 1-30 days overdue, 31-60 days, 61-90 days, and over 90 days. This report helps you identify collection problems early. Aging trends over time reveal whether your collection process is improving or deteriorating. Filter by customer, salesperson, or sales team to identify patterns.
Key Metrics
- Days Sales Outstanding (DSO) — Average days to collect payment. Lower is better.
- Collection effectiveness index — Percentage of receivables collected versus total outstanding.
- Bad debt ratio — Percentage of invoices written off as uncollectible.
- Online payment adoption — Percentage of customers paying online. Higher means faster collection.
- Follow-up response rate — How often follow-up emails result in payment within 48 hours.
DeployMonkey + AR Collections
Deploy Odoo Accounting on DeployMonkey and configure your AR collection workflow with AI assistance. From payment follow-up schedules to online payment providers, start collecting faster from day one.