Customer Advances

1. Service Retainers
   • Track client deposits against monthly service invoices
   • Example: Law firm applying retainer payments to monthly bills
2. Product Deposits
   • Manage customer down payments for goods
   • Example: Manufacturer applying 30% deposit against production order

Supplier Prepayments

1. Material Purchases
   • Track and apply prepayments to supplier invoices
   • Example: Construction company managing material prepayments
2. Service Contracts
   • Reconcile advance payments to contractors
   • Example: IT firm managing vendor retainers

Prerequisites

• Odoo Accounting module installed
• Properly configured Chart of Accounts
• At least one journal marked as “Advance Journal”

Integration Points

• Works with standard Odoo invoicing workflow
• Extends the account.move model
• Compatible with:
  • Odoo’s native multi-currency
  • Multi-company setups
  • Standard reporting features

1. Journal Configuration

1. Create → Type: Miscellaneous
2. Name: “Advance Compensation”
3. Code: ADV
4. Default Account: [Select prepayment account]
5. Advanced Settings → ☑ Is Advance Journal

2. Prepayment Accounts

Path: Accounting → Configuration → Chart of Accounts

• Customer Advances:
  • Type: Current Assets
  • Name: “Advances Receivable”
  • ☑ Allow Reconciliation
• Supplier Advances:
  • Type: Current Liabilities
  • Name: “Advances Payable”
  • ☑ Allow Reconciliation

3. Advance Product

Path: Inventory → Products

• Name: “Advance Payment”
• Type: Service
• Accounting:
  • Income/Expense: [Linked to prepayment account]

1. Recording an Advance Payment

1. Create a new invoice with the “Advance” product
2. Register the complete payment for the advance invoice
3. The advance will be available for compensation once fully paid

2. Applying Compensation

1. Open the regular invoice (must be for the same partner)
2. Click the Compensate Advance button
3. In the compensation wizard:
   • Select available advance(s) from the left panel
   • Choose invoice lines to compensate on the right
   • Enter the compensation amount
4. Click Compensate to apply the compensation

Supported Scenarios

• Customer and supplier invoices
• Partial compensation of advances
• Multi-currency transactions
• Multiple advance compensations per invoice

Prerequisites

• Advance invoice must be fully paid
• Regular invoice must be for the same partner
• Accounts must be reconcilable
• Proper journal configuration

Common Issues

1. Advance not appearing in compensation wizard
   • Verify the advance invoice is fully paid
   • Check if the partner matches
   • Confirm journal settings are correct
2. Compensation not working
   • Ensure accounts are properly configured
   • Check currency compatibility
   • Verify user has necessary permissions