Accounting · Odoo glossary
Payment Allocation
Payment allocation assigns received or outgoing money to specific invoices, bills or open account items.
Definition
In general ERP practice
Payment allocation assigns received or outgoing money to specific invoices, bills or open account items. Allocation can be partial, and an unapplied payment may remain on account.
In Odoo
Odoo links payments directly to invoices or bills, or matches outstanding credits and debits later. Reconciliation reduces the residual amount; paying part of an invoice does not imply that the remaining balance has been settled.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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