Mandatory Configuration: Setting Up Outstanding Accounts

In Odoo, the payment process requires a temporary "Bridge Account" to hold funds before they are fully reconciled with your bank statement. These are known as Outstanding Receipts and Outstanding Payments accounts.
Since this module automates the reconciliation of multiple invoices and handles write-offs, the system must have these accounts configured to generate the correct journal entries.
If these accounts are missing, Odoo’s internal validation will block the payment and display the following error message: “Please set Outstanding Receipts Account in the Journal for the selected payment method.”

1.How to Fix the "Outstanding Account" Validation Error

Go to Accounting → Configuration → Journals and select your Bank/Cash journal.

Set a valid account in the Outstanding Receipts (for Customers) or Outstanding Payments (for Vendors) column under the respective payment tabs.

2. Configurations:

Go to Accounting → Customers → Payments.

Click New to create a new payment.

Select Payment Type and choose the Customer (or Vendor for outbound).

Click the Load Invoices/Bills button.

The module searches for all Posted invoices in Not Paid or Partial status for the selected partner and populates the Invoices & Write-off tab.

Enter the payment amount in the Amount field.

If the user forgets to enter the payment amount, the system displays a validation error: “Please enter an amount.”

Tick the Select checkbox on each invoice/bill you want to include in this payment.

If the user forgets to select an invoice or bill, the system prompts a validation message requiring them to select at least one invoice or bill for payment.

Use the eye icon on any row to open the source invoice/bill in a popup form and verify line items — without leaving the payment screen.

3. Confirm Payment with all Writeoff details

If the payment does not exactly cover the invoice/bill total, enter the difference in the Write-off Amount field.

If the user selects invoices and enters a write-off amount but does not specify a write-off account, the system displays a warning: “Invalid fields: Write-off Account.”

When the user provides all write-off details (i.e., Write-off Amount, Write-off Account, and optionally Write-off Notes) and clicks Confirm, the system Creates a complete and accurate journal entry and the selected invoices as paid.

The payment status is Paid for the selected invoices

A journal entry is created following Odoo’s default behavior. If a write-off account, write-off amount, and write-off note are entered on the payment form, these values are applied to the write-off line in the generated journal entry.

4. Confirm Payment without Write-off Details

When the user does not enter any write-off details and simply enters the total invoice amount, selects the invoices, and clicks Confirm, the system creates a complete and accurate journal entry and marks the selected invoices as Paid without applying any write-off.

Journal Entry when Write-off Details not assigned in Payment