Down Payments in Odoo 18 Sales

Sales teams invoicing full order value upfront create cash flow problems: $50K machinery order needs manufacturing before delivery but customer won't pay $50K until receipt, company fronts materials/labor costs for months draining working capital, and customers balk at large upfront payments preferring staged payments tied to milestones—creating standoff where neither party comfortable with payment timing.

Odoo 18 Down Payments solve cash flow timing by requesting partial upfront payment (percentage or fixed amount), generating separate down payment invoice immediately, automatically deducting prepayment from final invoice preventing double-charging, tracking payment status per order, and providing flexible payment terms satisfying both parties—securing revenue early while building customer trust through transparent billing.

Creating Down Payment Invoice

1. Create sales order (Sales → Orders → New)
2. Confirm order (status changes to Sale Order)
3. Click Create Invoice
4. Select down payment option:
   • Down Payment (Percentage): e.g., 50% of total
   • Down Payment (Fixed Amount): e.g., $295
5. Click Create and View Invoice
6. Confirm invoice, then click Pay

Down Payment Types

Creating Final Invoice

When ready to invoice remainder:

1. From sales order, click Create Invoice again
2. Select Regular Invoice
3. Odoo automatically adds negative line item: "Down Payment (INV/2025/00035)"
4. Final amount due = Total - Down Payments already collected
5. Confirm invoice—customer sees transparent deduction

Best Practices

Request 30-50% Down Payments: Covers materials/labor costs without over-committing customer. 50%+ down payments reduce customer willingness to proceed.

Use Fixed Amounts for Cost Recovery: If order requires $2K in custom materials upfront, request fixed $2K down payment regardless of total order value.

Multiple Down Payments for Milestones: Long projects? Request 30% at order confirm, 30% at production complete, 40% at delivery. Ties payments to progress.

Conclusion

Odoo 18 Down Payments balance cash flow needs with customer flexibility through percentage or fixed amount deposits, automatic final invoice deduction, and transparent payment tracking. Secure working capital early without double-billing customers.