How to Add a Payment Method

 In Odoo, a bill can also be directly linked to an invoice, or it can be an independent document.

  • Whenever a payment is attached to an invoice, the amount due on the invoice is reduced. You may connect multiple transactions on the same invoice. 

  • When a payment is not connected to an invoice, the client will have an unpaid balance as an outstanding balance with a seller in your business. This unpaid credit/debit can be used to fund future invoices or payments. 

Payment of an Invoice 

When you're making a payment on an invoice or a vendor bill, the payment will immediately be reconciled with the deduction of the due amount.  

Payment Registration 

When we go to the accounting module, go to Sales if the payment is for Customer Invoice then select 'Payments'. For payments on purchase orders and vendor bills, go to Purchases then select 'Payments'. The payments made here is not linked to invoices, but are easily reconcilable with said invoices.

Reconciling the payments for invoices 

Reconciling a payment directly to an invoice is the easiest way to do the reconciliation. The easiest way is by doing the reconciliation on the invoice itself. After any purchase or sales, when we are yet to confirm the bill or invoice, Odoo warns or alerts us if we have an outstanding payment with the customer or vendor. Under the total amount, Odoo will show the outstanding payments and we can reconcile it from there.

So, that is all about the Payment Method in Odoo.