Efficient invoicing is one of the foundations of successful business operations. Every organization needs a structured billing process to maintain healthy cash flow, reduce payment delays, and improve customer satisfaction. When invoices are generated accurately and at the right time, finance teams spend less time correcting errors while customers receive a smoother purchasing experience.
Invoicing Policies in Odoo 17 provide businesses with complete control over when customer invoices are created. Rather than relying on manual decisions, Odoo automatically generates invoices according to predefined business rules. As a result, organizations can standardize their billing process while reducing administrative work. Whether a company prefers to invoice immediately after confirming a sales order or only after delivering products, Odoo 17 offers flexible options to support both workflows.
The Odoo 17 Sales application includes two invoicing methods:
- Invoice What is Ordered
- Invoice What is Delivered
Although both policies generate customer invoices, each one serves a different business model. Therefore, selecting the correct invoicing policy is essential for maintaining accurate accounting records, improving operational efficiency, and ensuring a seamless sales cycle.
This guide explains how to configure Invoicing Policies in Odoo 17, compares both invoicing methods, demonstrates the complete workflow, and helps you determine which option best fits your business.
Understanding Invoicing Policies in Odoo 17
An invoicing policy defines when Odoo creates a customer invoice after confirming a sales order. Instead of forcing every company to follow the same billing procedure, Odoo allows businesses to choose an invoicing strategy that aligns with their operational requirements.
For instance, wholesalers and subscription-based businesses usually invoice customers immediately because they collect payments in advance. In contrast, manufacturers, distributors, and logistics companies often prefer invoicing only after products reach the customer.
Implementing the correct invoicing policy helps organizations:
- Improve invoice accuracy
- Reduce billing disputes
- Maintain reliable accounting records
- Automate invoice generation
- Improve cash flow management
- Minimize manual errors
- Standardize financial processes
Because of these advantages, Invoicing Policies in Odoo 17 play a vital role in modern ERP-based sales management.
Types of Invoicing Policies in Odoo 17
Odoo 17 provides two standard invoicing policies that businesses can configure according to their sales process.
Invoice What is Ordered
Under this policy, Odoo creates customer invoices based on the quantity ordered in the Sales Order. Product delivery is not required before invoice generation.
Organizations commonly choose this method when they:
- Collect advance payments
- Sell customized products
- Offer subscription services
- Manufacture products after order confirmation
- Require payment before shipping
Invoice What is Delivered
This policy generates invoices only after products have been delivered. Odoo validates the delivered quantity before allowing invoice creation.
Businesses commonly use this method when they:
- Manage warehouse inventory
- Deliver products in multiple shipments
- Operate wholesale businesses
- Handle logistics operations
- Want invoices to reflect actual deliveries
Configure Invoicing Policies in Odoo 17
Before creating customer invoices, configure the invoicing policy within the Sales application.
Navigate to:
Sales → Configuration → Settings → Invoicing
Locate the Invoicing Policy section.
You will find two options:
- Invoice What is Ordered
- Invoice What is Delivered
Choose the policy that best matches your business requirements and click Save.
Although this setting establishes the default invoicing behavior, Odoo also allows individual products to use different invoicing policies whenever necessary.
Configure Product-Level Invoicing Policies
Once the global setting is complete, configure each product individually.
Navigate to:
Sales → Products → Products
Open the desired product.
Inside the General Information tab, locate the Invoicing Policy field.
Select one of the following:
- Ordered Quantities
- Delivered Quantities
Save the product.
From this point onward, Odoo automatically applies the selected invoicing policy whenever customers order that product.
Ordered Quantity Invoicing in Odoo 17
The Ordered Quantity policy allows businesses to generate invoices immediately after confirming a Sales Order. Delivery validation is unnecessary because invoice creation depends solely on the ordered quantity.
Consequently, organizations that collect advance payments often prefer this workflow.
Step 1: Create a Sales Order
Navigate to:
Sales → Orders → Quotations → New
Create a quotation by selecting the customer.
Next, add the configured product.
Enter the required quantity.
Verify pricing, taxes, and delivery information.
Finally, click Confirm.
Immediately after confirmation, Odoo converts the quotation into a Sales Order and enables invoice creation.
Step 2: Generate the Invoice
Select the Create Invoice button.
A dialog window appears.
Choose the preferred invoice creation method.
Click Create Draft Invoice.
Since the product uses the Ordered Quantity policy, Odoo instantly creates the draft invoice without checking delivery status.
Consequently, businesses can begin payment collection much earlier.
Step 3: Confirm the Invoice
Review the invoice carefully.
Verify customer details.
Confirm pricing information.
Click Confirm.
Once posted, register the payment using the Register Payment option.
Meanwhile, warehouse teams can continue preparing the shipment independently.
Advantages of Ordered Quantity Invoicing
Many organizations prefer this invoicing method because it accelerates the billing cycle.
Customers receive invoices immediately after order confirmation. Finance departments can collect payments before dispatching products. Sales teams avoid unnecessary delays while processing orders. Manufacturers also secure advance payments before production begins. Overall, this workflow strengthens cash flow and simplifies invoice management.
Delivered Quantity Invoicing in Odoo 17
Unlike the previous method, the Delivered Quantity policy creates invoices only after products have been delivered successfully.
Instead of relying on ordered quantities, Odoo verifies the actual delivered quantity before permitting invoice generation.
Therefore, invoices always match the products delivered to customers.
Step 1: Configure Delivered Quantities
Open the required product.
Navigate to:
Sales → Products
Locate the Invoicing Policy field.
Choose Delivered Quantities.
Save the product.
Step 2: Create the Sales Order
Generate a new quotation.
Select the customer.
Add the configured product.
Review the quotation details.
Confirm the Sales Order.
Although the Create Invoice button appears, invoice creation remains unavailable until delivery is completed.
Step 3: Attempt Invoice Creation
Click Create Invoice.
Choose the invoice method.
Press Create Draft Invoice.
Rather than generating the invoice, Odoo displays an error message because no delivery has been validated.
This safeguard prevents businesses from invoicing customers before shipment.
Step 4: Validate Product Delivery
Open the Delivery smart button.
The delivery order appears.
Warehouse personnel can now process the shipment.
Enter the delivered quantities inside the Operations tab.
Click Validate.
After validation, the delivery status changes to Done.
At this stage, Odoo records the delivered quantities and updates inventory automatically.
Step 5: Create the Customer Invoice
Return to the Sales Order.
Click Create Invoice once again.
Choose the preferred invoice method.
Click Create Draft Invoice.
Now Odoo successfully generates the customer invoice because delivery has been completed.
Review the draft carefully.
Confirm the invoice.
Finally, register the customer payment.
Benefits of Delivered Quantity Invoicing
Businesses that depend on inventory management often select this invoicing policy.
Invoices accurately reflect delivered quantities. Customers experience fewer billing disputes. Finance teams maintain more reliable accounting records. Warehouse operations remain synchronized with invoicing. Furthermore, companies can manage partial deliveries without generating inaccurate invoices.
Consequently, this method is ideal for businesses handling physical inventory.
Ordered Quantity vs Delivered Quantity in Odoo 17
| Feature | Ordered Quantity | Delivered Quantity |
|---|---|---|
| Invoice Creation | Immediately after Sales Order confirmation | After delivery completion |
| Delivery Required | No | Yes |
| Billing Basis | Ordered Quantity | Delivered Quantity |
| Cash Flow | Faster | Standard |
| Billing Accuracy | Order-based | Delivery-based |
| Suitable Business | Advance payment | Inventory businesses |
| Warehouse Dependency | Low | High |
| Customer Disputes | Moderate | Minimal |
Which Invoicing Policy is Right for Your Business?
Choosing the appropriate invoicing policy depends entirely on your operational workflow.
Businesses should select Ordered Quantity when they collect advance payments, manufacture products after confirmation, or provide subscription services.
Conversely, organizations should choose Delivered Quantity when warehouse operations determine billing, deliveries occur in multiple stages, or invoices must exactly match shipped products.
Fortunately, Odoo 17 allows different products to use different invoicing policies. Consequently, businesses gain exceptional flexibility without additional customization.
Best Practices for Managing Invoicing Policies in Odoo 17
Successful implementation requires more than simply selecting an invoicing policy.
Review product configurations before publishing new products. Train sales and warehouse teams to understand both invoicing methods. Validate deliveries promptly whenever Delivered Quantity invoicing is used. Reconcile invoices with deliveries on a regular basis to eliminate discrepancies. Finally, integrate Odoo Sales with Odoo Accounting to automate financial reporting and payment reconciliation.
Following these recommendations helps businesses improve operational efficiency while maintaining accurate financial records.
Why Businesses Choose Odoo 17 for Invoice Management
Odoo 17 integrates Sales, Inventory, Purchase, CRM, Accounting, and Customer Management into a single ERP platform.
Because every module shares the same database, businesses eliminate duplicate data entry and reduce manual work. Customer quotations, Sales Orders, delivery orders, invoices, and payments remain connected throughout the entire sales cycle.
Moreover, automated workflows improve reporting accuracy, accelerate payment collection, and simplify financial management. Organizations also benefit from real-time visibility into sales, inventory, and accounting activities, allowing managers to make faster business decisions.
Conclusion
Choosing the right Invoicing Policies in Odoo 17 helps businesses automate billing while improving financial accuracy. Companies that require advance payments can benefit from the Ordered Quantity policy because invoices become available immediately after Sales Order confirmation. On the other hand, organizations that rely on inventory movements can use the Delivered Quantity policy to ensure invoices accurately reflect delivered products.
Since Odoo 17 supports both global and product-level invoicing policies, businesses can easily adapt the ERP system to different operational requirements. This flexibility improves cash flow, strengthens financial control, reduces billing errors, and creates a more efficient sales process.
If you are planning to implement, customize, or optimize Odoo 17, Infintor Solutions, a trusted Odoo ERP Partner, can help you configure invoicing workflows, automate sales operations, and maximize the value of your ERP investment.