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Down payments and Pro-forma invoices

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Odoo Sales down payments and pro-forma invoices let a business collect an upfront payment or send an early estimate before a sale is fully invoiced. This guide explains how each works and when to use them.

Down payments

A down payment is a partial payment a customer makes when confirming a sales order, with the remaining balance due on delivery or completion. In Odoo, down payments are created from the sales order’s Create Invoice button.

How to create a down payment invoice

  1. On a confirmed sales order, click Create Invoice.
  2. In the pop-up, choose Down payment (percentage) or Down payment (fixed amount).
  3. Enter the amount, for example 50%, and click Create Draft Invoice.

A 50% down payment leaves the remaining 50% to invoice on delivery. A 100% down payment does not close the order: Odoo still expects a final invoice to complete it.

If the invoicing policy is based on delivered quantities and nothing has been delivered yet, Odoo may not allow the down payment to be deducted, and a credit note may be needed unless delivery is confirmed first.

Changing the down payment income account

  1. With the Accounting app installed, go to Sales > Products > Down Payment.
  2. In the Accounting tab, update the Income Account.

Pro-forma invoices

A pro-forma invoice is an estimated invoice sent ahead of delivery, commonly used during negotiations or for customs purposes. Unlike a down payment invoice, it does not create accounting entries and is not a demand for payment. To use it, enable Pro-Forma Invoice under Sales > Configuration > Settings, in the Quotations & Orders section, then use the Send Pro-Forma Invoice button on a quotation or sales order.

Best practice

  • Use down payments to secure large orders and manage partial payments.
  • Use pro-forma invoices during negotiation or for international shipping requirements.
  • Set the invoicing policy according to whether billing should follow ordered or delivered quantities.
  • Keep down payment accounts mapped correctly to simplify financial reporting.

Frequently asked questions

Does a 100% down payment close the sales order?

No. Odoo still expects a final invoice to complete the order, even after a 100% down payment.

Does a pro-forma invoice create accounting entries?

No. A pro-forma invoice is an estimate and does not create accounting entries, unlike a down payment invoice.

Can I change the income account used for down payments?

Yes, in the Accounting tab of the Down Payment product under Sales > Products, or at the product category level.

Need help?

Need help setting up down payments or pro-forma invoices in Odoo Sales? Contact support@thoughtlogik.com or see our Odoo implementation services.

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