Service Invoicing Policies Odoo 18

Consulting firm managing 30 client projects discovers billing chaos: different clients requiring different payment structures hourly billing agency retainer monthly fixed fee milestone-based payments but using single invoice template for all creating confusion client disputes, project manager tracking 120 hours consulting work unable generating invoice because system lacks timesheet integration manually calculating billable hours each payroll cycle introducing errors underbilling losing revenue, software development agency agreeing milestone-based payment 5-phase project $50K total but unable tracking which milestones completed invoiced resulting cash flow problems client confusion payment delays, marketing agency offering prepaid service packages unable processing upfront payments tracking service delivery against prepaid amounts creating accounting headaches, and construction company billing clients based progressive work completion manually updating invoice quantities each billing cycle spending 15 hours monthly creating invoices prone calculation errors disputes—creating revenue leakage billing disputes cash flow problems administrative burden and inability matching invoicing methods with diverse business models requiring flexible invoicing policies timesheet integration milestone tracking prepaid options and automated billing supporting accurate timely revenue recognition client satisfaction operational efficiency.

Odoo 18 service invoicing policies enable flexible billing through four comprehensive methods timesheet-based invoicing billing actual worked hours logged timesheets accurate transparent time-based billing, milestone-based invoicing breaking large projects staged payments each completion phase improving cash flow client budget management, prepaid fixed pricing enabling upfront billing fixed-fee services simplifying billing predictable revenue, delivered quantity manual providing progressive billing based actual service completion flexible client needs, billable feature activation enabling invoice functionality within projects, sales order integration linking service products projects automated invoice generation, smart buttons providing quick access projects tasks milestones invoices streamlined navigation, timesheet tab recording employee hours worked tasks automatic delivered quantity updates, milestone management marking milestones reached triggering invoice creation, and create invoice feature generating regular invoices down payments based policy configuration—reducing billing errors 95 percent through automated calculations improving cash flow via flexible payment structures enhancing client satisfaction through transparent accurate invoicing achieving operational efficiency automated invoice generation and supporting diverse business models through comprehensive invoicing policy options enabling professional service delivery financial excellence.

Understanding Service Invoicing Policies

Billing aligned with service delivery:

Purpose and Importance:

Four Invoicing Policies:

Enabling Billable Feature

Foundation for project invoicing:

Activating Billing Functionality:

1. Navigate to Project Settings:
   • Go to: Project → Configuration → Settings
   • Settings page displays
2. Enable Billable:
   • Locate Billable option
   • Check box activate feature
   • Save settings
3. Result:
   • Billing functionalities enabled across projects
   • Invoice t available within projects
   • Ready configure invoicing policies

Timesheet-Based Invoicing

Billing for actual hours worked:

Use Case:

Product Configuration:

1. Create/Configure Service Product:
   • Navigate: Sales → Products → Products
   • Click New or select existing product
2. Set Product Type:
   • Field: Product Type
   • Select: Service
3. Configure Invoicing Policy:
   • Field: Invoicing Policy
   • Select: Based on Timesheets
4. Set Create on Order:
   • Field: Create on Order
   • Options:
     • Project & Task: Creates both
     • Task: Creates only task existing project
5. Save product

Creating Sales Order:

1. Navigate: Sales → Orders → Quotations
2. Click New
3. Select customer
4. Add configured timesheet service product order lines
5. Confirm quotation

Accessing Project and Tasks:

1. From Sales Order:
   • Smart buttons appear: Projects or Tasks
   • Click access automatically created project/task
2. From Project Module:
   • Navigate: Project → All Projects
   • Locate project linked sales order

Recording Timesheets:

1. Open Task:
   • Click Tasks smart button sales order
   • Task form opens
2. Access Timesheets Tab:
   • Click Timesheets tab
   • Timesheet entry interface displays
3. Add Time Entry:
   • Click Add a line
   • Select employee
   • Choose date
   • Enter hours in Time Spent field
   • Optional: Add description
   • Save entry
4. System Updates:
   • Allocated Time percentage updates
   • Time Spent cumulative total displays
   • Time Remaining calculated automatically

Generating Invoice from Timesheets:

1. Return sales order
2. Check Delivered column order lines
3. Reflects logged timesheet hours automatically
4. Click Create Invoice
5. Select Regular Invoice
6. Draft invoice generates
7. Review invoice lines showing worked hours
8. Confirm invoice

Milestone-Based Invoicing

Staged payments for large projects:

Use Case:

Milestone Product Configuration:

1. Navigate: Sales → Products → Products
2. Create new product for each milestone
3. Set Invoicing Policy: Based on Milestones
4. Configure Create on Order as needed
5. Save products

Sales Order with Milestones:

1. Create sales quotation
2. Add milestone products order lines:
   • Milestone 1: Design Phase - $10,000
   • Milestone 2: Development Phase - $20,000
   • Milestone 3: Testing Phase - $10,000
   • Milestone 4: Deployment - $10,000
3. Confirm quotation

Managing Milestones:

1. Access Milestones:
   • From sales order click Milestones smart button
   • Milestone management interface opens
2. Create Tasks for Milestones:
   • Click Tasks smart button
   • Create task each milestone
   • In each task form set Milestone field
   • Link task appropriate milestone
3. Track Progress:
   • Employees update task progress
   • When task completed milestone achieved

Invoicing Milestones:

1. Mark Milestone Reached:
   • Open sales order
   • Click Milestones smart button
   • Find completed milestone
   • Check box Reached column
2. Create Invoice:
   • Return sales order main page
   • Delivered column updates
   • Click Create Invoice
   • Select invoice type
   • Invoice generates for reached milestone
3. Record Payment:
   • Process customer payment
   • Invoiced column updates
   • Invoices smart button displays
4. Repeat for each subsequent milestone

Prepaid/Fixed Price Invoicing

Upfront or fixed-fee billing:

Use Case:

Product Configuration:

1. Create service product
2. Set Product Type: Service
3. Set Invoicing Policy: Prepaid/Fixed Price
4. Configure Create on Order
5. Save product

Creating Invoice:

1. Create confirm sales order
2. System expects full payment upfront or upon delivery
3. Click Create Invoice
4. Choose invoice type:
   • Regular Invoice: Full amount
   • Down Payment (percentage): E.g. 30% upfront
   • Down Payment (fixed amount): E.g. $5,000 deposit
5. Generate invoice
6. Confirm invoice
7. Access via Invoices smart button

Delivered Quantity (Manual) Invoicing

Progressive billing based completion:

Use Case:

Product Configuration:

1. Create service product
2. Set Invoicing Policy: Based on Delivered Quantity (Manual)
3. Set Create on Order: Project & Task
4. Save product

Managing Delivered Quantities:

1. Initial State:
   • Sales order created confirmed
   • Project task automatically generated
   • Delivered Quantity shows zero
2. Update Progress:
   • As work progresses manually update Delivered column
   • E.g.Order quantity: 100 hours
   • Week 1: Update delivered to 25 hours
   • Week 2: Update delivered to 50 hours
3. Generate Invoice:
   • Click Create Invoice
   • Invoice generated based current delivered quantity
   • Draft invoice displays
   • Review confirm invoice
4. Progressive Billing:
   • Continue updating delivered quantities
   • Generate invoices as work progresses
   • Client billed only services actually completed

Best Practices

Choose Invoicing Policy Matching Your Actual Service Delivery Model: Mismatched invoicing policy equals billing confusion administrative headaches client disputes. Selection criteria: Hourly consulting services use timesheet-based policy ensuring accurate time billing, large fixed-scope projects milestones use milestone-based staged payments, fixed-fee packages use prepaid policy simplifying billing, progressive-completion projects use manual delivered quantity flexible billing. Correct policy selection from beginning ensures smooth billing process reducing errors maintaining client trust.

Always Enable Billable Feature Before Creating Billable Projects: Forgotten billable activation equals missing invoicing functionality requiring retroactive configuration data re-entry. Activation checklist: Enable billable feature Project settings before project creation, verify billable option appears project forms, test invoice creation sample project confirming functionality, train team billable feature location purpose. Proactive activation prevents frustration ensures billing capabilities available when needed.

Use Smart Buttons Quick Navigation Between Sales Orders Projects Tasks Invoices: Manual navigation different modules equals wasted time lost context reduced productivity. Navigation efficiency: Click Projects smart button sales order accessing related project instantly, use Tasks smart button jumping specific task timesheet entry, access Invoices smart button verifying invoice status, leverage Milestones smart button tracking milestone completion. Smart button utilization streamlines workflows reducing clicks improving user experience.

Regularly Review Delivered Quantities Before Invoice Generation Ensuring Accuracy: Unverified delivered quantities equals billing errors overcharging undercharging client disputes. Verification routine: Check timesheet entries match expected hours before invoicing, verify milestone completion confirmed stakeholders before marking reached, review manually-entered delivered quantities against project progress, confirm invoice amounts match agreed project terms. Pre-invoice review catches errors early protecting revenue accuracy maintaining professional relationships.

Conclusion

Odoo 18 service invoicing policies enable flexible billing through timesheet-based invoicing milestone-based invoicing prepaid fixed pricing delivered quantity manual billable feature activation sales order integration smart button navigation timesheet recording milestone management and create invoice automation. Reduce billing errors through automated calculations improving cash flow via flexible payment structures enhancing client satisfaction through transparent accurate invoicing achieving operational efficiency automated invoice generation supporting diverse business models through comprehensive invoicing policy options enabling professional service delivery financial excellence and achieving competitive advantage through superior billing capabilities systematic revenue recognition efficient project-based invoicing supporting business growth organizational success.