Hello Siddharth,

You're right this is standard behavior in Odoo when using the Delivered Quantity invoice policy along with a 100% down payment.

Here’s what happens:

• Odoo considers that the full sales order is already paid (via the 100% down payment).
• When you try to invoice a partial delivery, Odoo sees that you're billing less than what’s already paid, and it creates a credit note to reflect the overpayment.

Possible workaround:

1. Create the 100% down payment as a regular invoice, not as a down payment.
2. Or, instead of invoicing by delivered quantity, switch to invoicing based on ordered quantity if your process allows it.
3. Alternatively, wait until full delivery is completed before invoicing if you must use down payments.

Bonus:

There’s currently no native way to create a partial delivery invoice that’s linked properly to a 100% down payment in Odoo standard. It would require custom development or a module extension to handle such cases more flexibly.

Hope this helps!

Hi Siddharth

I don't think you can use the down payment feature of Odoo for this one. You might need to create a manual payment and apply it later on when invoice has been created.

You can also check other third-party apps that satisfy Sales Advance Payments.