Inventory Purchase Process with 30% Prepayment (Odoo + Xero)

Step 0: Create Purchase Order in Odoo

• Create a Purchase Order (PO) in Odoo.

• Total Value: $1,000

• PO Status: Request for Quotation → Purchase Order

Step 1: Pay 30% Prepayment ($300)

• No formal invoice yet.

In Xero, via Bank Reconciliation, select "Prepayment" option:

Dr Prepayment – Inventory     $300  

Cr Bank                        $300

Step 2: Supplier Issues Final Invoice ($1,000)

In Xero, record:

Dr Inventory Clearing         $909.09  

Dr GST Receivable              $90.91  

Cr Accounts Payable          $1,000.00

•  (Assumes 10% GST included in total price)

Step 3: Pay Remaining 70% ($700)

In Xero, via Bank Reconciliation:

Dr Accounts Payable          $700  

Cr Bank                      $700

Step 4: Apply the 30% Prepayment ($300)

In Xero, allocate the prepayment credit note to the invoice:

Dr Accounts Payable          $300  

Cr Prepayment – Inventory    $300

Step 5: Receive Goods into Inventory

• In Odoo, mark PO as "Done" after goods are received.

• If Odoo is integrated with Xero, inventory journal may sync automatically.

In Xero, record:

Dr Inventory                 $909.09  

• Cr Inventory Clearing        $909.09