How To Forecast Future Bills To Pay In Odoo
Cash flow is essential to any successful organization, regardless of size. If you have access to operational cash, you will be in a better position to manage and build your company correctly. When it comes to having problems being paid on time, most of the vendors are also in the same position as you.
This includes being in the same boat as you. Although you may not have given it much thought before, cash flow is of the utmost significance to the vendors (which are primarily small companies). Because of this, a significant number of businesses provide various incentives, such as early payment discounts.
In a nutshell, if you have a greater cash flow than your suppliers, you will be in a position to help them get cash flow as well. as a result of the many doors of opportunity for advancement that you access. The article below will show you how to forecast future bills to pay in Odoo to process payments on time. So, let’s dive in! Table of contents:
- Advantages for suppliers when payments are made on time
- How to forecast future bills to pay in Odoo
Advantages for suppliers when payments are made on time
It is difficult for small businesses to constantly pay their suppliers on time since small firms often find themselves in financial straits from time to time. This suggests that your vendors may be more willing to offer discounts for prompt or early payment; nevertheless, you should not be surprised in the event that there is not yet a defined policy.
Be sure to highlight the benefits that they will obtain from being paid early when you are discussing the terms and circumstances with them. These include the following:
Maintaining a Steady Cash Flow: Cash flow gaps might also be experienced by suppliers. It is known that they have to wait over a month to get paid for a job. If you can reduce this time lag, you will assist them in improving their cash flow and cash on hand, allowing them to maintain control over their operating costs as they continue to fulfill orders. Being paid ahead of time reduces the risk of subsequent payments being delayed: This may sound like a no-brainer, but it’s essential to remember. Consider the implications. If a customer believes they will have enough time to pay a bill, they may decide to put off payment until the last possible moment, which may very likely result in the payment being late. Suppliers rely on their customers sticking around for future business: If your current suppliers offer incentives, such as early payment discounts, you will have a greater propensity to purchase from them again (and perhaps even recommend them to other suppliers).
How to forecast future bills to pay in Odoo
When you receive hundreds of bills from different vendors every month, and each has its unique payment conditions, it can be challenging to keep track of what you have to pay and when you have to pay it. Paying your suppliers ahead of schedule will reduce the amount of cash you have available while paying them after the due date can result in additional fees.
Odoo, to your good fortune, gives you access to the tools you need to properly manage payment orders sent to vendors.
Step 1: Adjust the payment terms in Configuration
We make use of payment terms in Odoo in order to keep track of the various vendor requirements. The payment terms make it possible to record the criteria that must be met to calculate an invoice’s due date. The following are some examples of payment terms: 50 % in less than a month 50 % in less than 45 days
Make advantage of the following option in the Accounting application: Configuration > Management > Payment Terms in order to generate your most often used payment terms. The following illustration demonstrates a payment term in which 30% of the total is due immediately, and the remaining 70% is due after 30 days.
After the payment conditions have been specified, you will be able to assign them to your vendor automatically. Adjust the value in the field labeled “Vendor Payment Term” that can be found on the “Accounting” tab of a vendor form. In this approach, Odoo will always suggest the appropriate payment period whenever you make a purchase from this particular merchant.
Even if you do not specify a particular payment term on a vendor, you will still be able to do so on the bill associated with that vendor.
Step 2: Utilize the Aged Payables report to make payment schedule projections
Utilize the Aged Payable report to keep track of the amounts that must be paid to the various suppliers. You may acquire it by going into the Accounting program and selecting the Reports option. This report provides a summary of the amounts that need to be paid to each vendor, along with their respective due dates (the due date is computed on each bill using the payment term).
This report will inform you how much money you are going to be responsible for paying over the following few months.
Step 3: Choose which invoices you need to pay
You may obtain a list of vendor invoices by selecting Purchases > Vendor Bills from the drop-down menu. By using the sophisticated filters, you will be able to compile a list of all invoices that are due soon or that are past due (you are late on the payment).
You may also go to the pivot table or the graph view from this page to acquire statistics on the amount that is due over the following month by utilizing the feature labeled “Due Date.”
The ability to accurately predict which payments need to be paid can build your company’s credit. Check with your seller to discover if they report payments to the credit bureaus and, if so, whether they do so automatically or manually.
Should this occur, a record of your on-time payments will be kept, which will assist you in building a solid credit history for your business. Potential suppliers, vendors, and even lenders will be able to see that your firm has a good reputation if they access this information and read it for themselves.
We hope this tutorial will help you understand how to forecast future bills to pay in Odoo. Because of this, your suppliers will have a greater propensity to maintain their relationship with you in the coming years and continue doing business with you.
not your workload
Simple, powerful tools to grow your business. Easy to use, quick to master and all at an affordable price.Get Started