In order to facilitate precise communication and uphold accountability, the issuance of a purchase order is imperative, as it formalizes the contractual agreement between the client and the supplier, delineating the specific items, quantities, and negotiated prices. Concurrently, invoices hold significant value as they serve as legal documentation of the transaction, encompassing essential details for financial reporting and payment processing. When utilized in conjunction, these documents empower an organization to maintain meticulous financial records, mitigate potential disputes, and enhance the efficiency of procurement operations.
In many companies, the billing process is managed by the accounting department, while the procurement department is in charge of purchasing. To effectively handle purchase orders and billing in Odoo 18, users can leverage two separate modules: Odoo 18 Accounting and Odoo 18 Purchase. An interesting feature is the connection between these two components. As a result, it is crucial to align vendor bills with purchase orders in these scenarios. This alignment ensures that the items or services received correspond to what was ordered, helping to prevent errors or overpayments. This procedure supports precise record-keeping, readiness for audits, accountability, and a decrease in financial inconsistencies.
Let's explore the process of matching bills and purchase orders in Odoo 18. To begin, we need to access the purchase module. The purchasing team has decided to acquire new items for the company's inventory. Therefore, we will create a new Request for Quotation (RFQ) for the selected vendor. Simply click the new button to initiate the creation of a new RFQ.
The vendor associated with this order is Alexa Laza - US12345699. Ensure that you input the other necessary details such as currency, order deadline, and expected arrival date. Moreover, the products tab allows you to include the items you plan to purchase.
The order line contains product names, quantities, and unit prices. Here, the purchase team ordered two products. One is a Acoustic Bloc Screen with a unit price of $300, and a Aperol Spiritz costs $450. The top of the screen contains a confirmation button. So click on the Confirm button.
So the purchase order is confirmed. As said before, the billing staff is responsible for creating the bill. Moving to the accounting module, click on the Vendor menu and choose the Bills.
A list view of the created bills is shown there. Bill sequence, vendor, bill date, due date, reference, and other details are shown there. Click on the New button to add a new bill.
Here is a draft vendor bill, so add the same vendor, Alexa Laza. In the Invoice Lines, add the details like product and reference. So, to add a new reference, click on the icon marked in the screenshot below.
Instead of listing the product, please include a description labeled "Payment." The total amount should be $817.50. Don't forget to add the billing date and then finalize the invoice.
A new smart tab named "Purchase Matching" has been introduced in Odoo 18. This feature enables you to align bill payments with corresponding purchase orders. Simply click on it to access the functionality.
The smart tab shows all purchase orders associated with the vendor Alexa Laza. To add a payment to a specific purchase order, choose the relevant Bill and purchase order.
To attach the payment to the purchase order, click on the ‘Add to PO’ button. This will trigger a popup where you can select the purchase order. After entering the purchase order, click the Add Down Payment button to complete the process.
After that, the selected purchase order will appear. To verify the purchase order, go back to the purchase section. Open the purchase order that was previously established.
A description has been newly added to the order line, which matches the one found in the Vendor bill.
Two new smart tabs were added, named Vendor Bills and Bill Matching. Open the first smart tab, Bill Matching.
Similarly to the Purchase Matching feature found within the vendor bill, it is also feasible to reconcile vendor bills with purchase orders from this interface.
To proceed with the purchase order, select the Receive button to accept the products. Following that, the next action is to generate the bill by clicking on the Create Bill button.
The accounting department has already prepared and validated the invoice. As a result, the vendor bill includes the down payment that was received from the invoice issued by the accounts department.
Confirm the vendor bill. Then, the bill was paid. then check the Invoice Lines. the products added in the purchase order are shown with the cost. The amount that is added to the vendor bill is shown with a negative sign.
To sum up, Odoo 18 simplifies the process of reconciling vendor bills with purchases. This enhancement leads to greater financial precision, reduces discrepancies, and fosters trust in the company's operations.