Yes, in Odoo, you can redeem loyalty points from a customer's sales order or invoice using custom logic, as the standard Odoo CRM/Sales modules do not offer out-of-the-box loyalty redemption like POS does. However, it can be implemented with the following approaches:

1. Create a Loyalty Points Field
   • Go to Contacts (Customers) > Add a custom field (e.g., loyalty_points) in the customer model using Studio or custom code.
2. Define Point Value Logic
   • Set a conversion rate, e.g., 1 point = 1 USD.
3. Sales Order / Invoice Integration
   • Add a checkbox or button on the Sales Order or Invoice form (e.g., “Redeem Points”).
   • On redemption:
     • Calculate the discount amount (e.g., 5 points = 5 USD).
     • Subtract it from the total amount using a discount product line.
     • Deduct points from the customer’s loyalty_points.
4. Add a Discount Line Automatically
   • Create a product called "Loyalty Redemption" with negative price.
   • When redeeming, a line is added to the Sales Order or Invoice with -5 USD.

Please refer:-

https://www.odoo.com/documentation/18.0/applications/sales/point_of_sale/pricing/loyalty.html

for ex-

• Customer has 5 points
• Bill is 100 USD
• You apply loyalty:
  • System adds a line item:
    “Loyalty Redemption” -$5
• New Total = $95
• Customer’s points reduced to 0

Hi,

Redeem loyalty reward is according to the loyalty program.The loyalty program provides a provision for the customers to allocate a reward like a free product or a discount. On selecting to add a free product select the respective gift, on the other hand, choosing a discount select the discount amount or the percentage allocation.

Please refer;-

https://www.odoo.com/documentation/18.0/applications/sales/point_of_sale/pricing/loyalty.html

https://www.cybrosys.com/blog/how-to-manage-loyalty-programs-in-odoo-17-pos

Hope it helps