How to Automate Invoicing & Billing
The Problem
Manual invoicing is slow, error-prone, and directly impacts cash flow. Finance teams spend hours creating invoices from sales orders, double-checking line items, and sending them by email or post. Late invoices mean late payments, and without automated follow-up, outstanding receivables pile up. Subscription and recurring billing adds another layer of complexity when handled manually, as missed billing cycles translate directly into lost revenue.
The Solution
Odoo invoicing automation generates invoices automatically from confirmed sales orders, delivery orders, or timesheet entries and sends them to customers on a defined schedule. Recurring invoices for subscriptions are created and dispatched without intervention. Automated payment reminders escalate through configurable follow-up levels, and online payment links let customers pay instantly from the invoice email, dramatically reducing days sales outstanding.
Step-by-Step Setup
Configure Invoice Templates
Design professional invoice templates with your branding, payment terms, bank details, and legal footnotes. Create variants for different customer types such as retail, wholesale, and subscription.
Set Up Auto-Invoicing Rules
Configure Odoo to automatically generate invoices when sales orders are confirmed, when goods are delivered, or on a recurring schedule for subscription products. Define the trigger event for each product category.
Enable Online Payments
Connect payment gateways like Stripe, PayPal, or bank transfer portals to Odoo. Invoices include a secure payment link so customers can pay by credit card or bank transfer directly from the email.
Automate Payment Follow-Ups
Define follow-up action levels in Odoo: a friendly reminder at 7 days overdue, a firm reminder at 14 days, and a final notice at 30 days. Each level has its own email template and can trigger phone call tasks for the collections team.
Configure Recurring Billing
Set up subscription plans with billing intervals (monthly, quarterly, annual) and automatic invoice generation. Odoo handles prorations for mid-cycle upgrades or downgrades.
Set Up Credit Note Automation
Define rules for automatic credit note generation on returns and cancellations. Link credit notes to the original invoice for clean audit trails and reconciliation.
Before vs After
| Aspect | Before | After |
|---|---|---|
| Invoice Generation | Manually creating each invoice from sales orders, taking 10-15 minutes per invoice | Auto-generated from confirmed orders in seconds with zero manual entry |
| Payment Collection | Average 45-60 days sales outstanding with no systematic follow-up | Average 18-25 DSO with automated reminders and instant online payment |
| Recurring Billing | Calendar reminders to manually create subscription invoices each month | Fully automated subscription billing with proration handling |
| Payment Reconciliation | Manually matching bank deposits to open invoices weekly | Auto-reconciliation when online payments are received through integrated gateways |
| Dispute Resolution | Searching through email threads and file cabinets to find invoice history | Complete invoice lifecycle with notes, attachments, and credit note links in one record |
Frequently Asked Questions
Can I send invoices in multiple languages and currencies?
Yes. Odoo generates invoices in the customer preferred language and currency. Exchange rates update automatically, and multi-currency receivables are tracked with gain/loss calculations at reconciliation.
How do automated payment reminders work?
You define follow-up levels with day thresholds and email templates. Odoo checks overdue invoices daily and sends the appropriate reminder based on how many days past due. You can also assign phone call tasks to your team for high-value overdue accounts.
Can Odoo handle both B2B and B2C invoicing?
Absolutely. You can configure separate payment terms, tax treatments, and invoice templates for business and consumer customers. B2B invoices can include purchase order references and net payment terms while B2C invoices include simplified tax breakdowns.
What happens when a customer partially pays an invoice?
Odoo records partial payments and keeps the invoice open for the remaining balance. Payment follow-up rules apply to the outstanding amount, and the customer portal shows the current balance due with full payment history.
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