How to Manage Timesheet-Based Invoicing in Odoo 18 Projects

Overview

In Odoo 18, timesheet-based invoicing is an essential feature for service-based businesses, allowing them to bill clients based on the actual time spent on tasks. By leveraging timesheets, companies can ensure accurate billing, track employee productivity, and maintain transparency in client invoicing. Odoo provides flexible invoicing policies that let businesses choose between billing all recorded timesheets or only validated timesheets. Understanding how to set up and manage timesheet-based invoicing in Odoo 18 can help improve workflow efficiency and streamline financial operations.

Project

Go to project Module. Create a new Project Eg: ‘Custom ERP set up’. Enable the booleans Timesheets and Billable.

Timesheet Boolean: If enabled, users can log their working hours on tasks using timesheets.

Billable Boolean: If enabled, recorded timesheets can be billed to the customer.

After enabling them, create the project. You can provide status for the tasks under that project like: New, In Progress, Done.

Product Creation

1) Eg:’ Development Services’. Configure the product such that :

Product Type : Service

Sales Price : 75 For eg.

Create On Order : Task

Project : Select the created project. Eg:Custom ERP set up

Invoicing Policy : Based on Timesheets.

2) Eg:’ Testing. Configure the product such that :

Product Type : Service

Sales Price : 50 For eg.

Create On Order : Task

Project : Select the created project. Eg:Custom ERP set up

Invoicing Policy : Based on Timesheets.

3) Eg:’ Project Management. Configure the product such that :

Product Type : Service

Sales Price : 80 For eg.

Create On Order : Task

Project : Select the created project. Eg:Custom ERP set up

Invoicing Policy : Based on Timesheets.

Sale Order

Now create a sale quotation with these created products. Eg:

In this example , add the products such that

Project Management allocates 100 Hours
Development Services allocates 200 Hours
Testing allocates 50 Hours.

Before confirming SO we need to check the invoicing policy for the timesheets.

In Odoo 18, the Invoicing Policy for timesheets determines which recorded time entries are considered when generating invoices for services.

Go to Setting -> Timesheets-> Invoicing Policy select validated timesheets only.

All Recorded Timesheets: With this policy, every timesheet entry, regardless of its validation status, is included in the invoicing process. This approach ensures that all logged hours are billed to the client.
Validated Timesheets Only: This policy restricts invoicing to only those timesheet entries that have been validated. Validation typically involves a review and approval process, ensuring that only approved hours are billed to the client.

Select ‘All Recorder Timesheets’.

After confirming, we can see the smart buttons with 1 project and 3 tasks added.

Open the tasks and select any one of the tasks.

1)Development Services.

Select an assignee for that task . Eg: Marc Demo.

For this task already 200 Hours are allocated . Under the timesheet tab you can add each timesheets.

-02/12/2025 - Backend Development - 8 Hours

-02/13/2025 - continue - 6 Hours

2)Testing

Select an assignee for that task . Eg: Marc Demo.

For this task already 50 Hours are allocated . Under the timesheet tab you can add each timesheets.

-02/12/2025 -Testing- 8 Hours

-02/13/2025 - continue - 3 Hours

3)Project Management

Select an assignee for that task . Eg: Marc Demo.

For this task already 100 Hours are allocated . Under the timesheet tab you can add each timesheets.

-02/12/2025 -Management- 10 Hours

After allocating timesheets when we check the sale order, delivery quantities will be updated.

Invoicing

Create a draft invoice of the sale order created. We can see that an invoice will be created for those hours that will be filled by that employee.

Conclusion

Timesheet-based invoicing in Odoo 18 is a powerful tool for businesses that charge clients based on hours worked. By choosing the right invoicing policy, companies can ensure accurate and transparent billing. Whether opting for automatic invoicing of all recorded hours or implementing a validation process before billing, Odoo provides the flexibility to adapt to different business needs. Properly managing timesheets and invoicing in Odoo 18 can lead to improved financial accuracy, enhanced client trust, and streamlined project management.

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in General

How to Manage Timesheet-Based Invoicing in Odoo 18 Projects

How to Manage Timesheet-Based Invoicing in Odoo 18 Projects

Overview

Project

Go to project Module. Create a new Project Eg: ‘Custom ERP set up’. Enable the booleans Timesheets and Billable.

Timesheet Boolean: If enabled, users can log their working hours on tasks using timesheets.

Billable Boolean: If enabled, recorded timesheets can be billed to the customer.

After enabling them, create the project. You can provide status for the tasks under that project like: New, In Progress, Done.

Product Creation

1) Eg:’ Development Services’. Configure the product such that :

Product Type : Service

Sales Price : 75 For eg.

Create On Order : Task

Project : Select the created project. Eg:Custom ERP set up

Invoicing Policy : Based on Timesheets.

Product Type : Service

Sales Price : 50 For eg.

Create On Order : Task

Project : Select the created project. Eg:Custom ERP set up

Invoicing Policy : Based on Timesheets.

3) Eg:’ Project Management. Configure the product such that :

Product Type : Service

Sales Price : 80 For eg.

Create On Order : Task

Project : Select the created project. Eg:Custom ERP set up

Invoicing Policy : Based on Timesheets.

Sale Order

Now create a sale quotation with these created products. Eg:

In this example , add the products such that

Project Management allocates 100 Hours

Development Services allocates 200 Hours

Testing allocates 50 Hours.

Before confirming SO we need to check the invoicing policy for the timesheets.

In Odoo 18, the Invoicing Policy for timesheets determines which recorded time entries are considered when generating invoices for services.

Go to Setting -> Timesheets-> Invoicing Policy select validated timesheets only.

All Recorded Timesheets: With this policy, every timesheet entry, regardless of its validation status, is included in the invoicing process. This approach ensures that all logged hours are billed to the client.

Validated Timesheets Only: This policy restricts invoicing to only those timesheet entries that have been validated. Validation typically involves a review and approval process, ensuring that only approved hours are billed to the client.

Select ‘All Recorder Timesheets’.

After confirming, we can see the smart buttons with 1 project and 3 tasks added.

1)Development Services.

Select an assignee for that task . Eg: Marc Demo.

For this task already 200 Hours are allocated . Under the timesheet tab you can add each timesheets.

-02/12/2025 - Backend Development - 8 Hours

-02/13/2025 - continue - 6 Hours

Select an assignee for that task . Eg: Marc Demo.

For this task already 50 Hours are allocated . Under the timesheet tab you can add each timesheets.