What is the importance of bank reconciliation? This process helps the user to match the cash account information of an individual or a firm with the bank details. Bank reconciliation helps a person to check if there are any differences in the accounts by comparing them. This also helps to take immediate corrective measures on noticing any differences.
On noticing any difference in accounts, the ERP will help to reconcile the difference. Odoo 14 has an updated software support tool to assist you to reconcile the accounts. We all know that all the cash transactions will be recorded in the bank when a person is running a business. The user will have to ensure that the bank account matches with the cash account to ensure that all transactions are being recorded in both the accounts and synched regularly. This will ensure transparency in the management of business revenue and expenditure. This will help the user to easily identify if any check has been bounced or any payment is due.
What does Odoo 14 offer?
It helps to link invoices and other payment details with the bank statements. Odoo offers two different types of reconciliation methods. The formats are as given below:
Direct registering of payment with invoices or payment registration
Reconciling open invoices with bank
We can check both the cases in this functional blog.
First, let us look at payment registration
Install the Accounting Module first.
For Payment Registration, there are no difficult steps for reconciliation. You can now create an invoice to proceed.
A user can just click on the register payment option in the invoice.
This will help the invoice to get automatically reconciled with the bank account. On clicking the Register Payment tab, a new window will appear to Register Payment.
Click on the Create Payment button and the account status will be changed to In Payment as given below.
It is this feature that helps the user to access payment details from the invoice. Near the amount, you can spot a small green icon near the payment made date. On clicking on the icon the user will get the payment information. Check this to find if the reconciliation process has been completed automatically.
Bank statement reconciliation case
Let us now check the bank statement reconciliation case. Import or create bank statements first. Then refer to documents from the bank feed section.
The reconciliation statement can be accessed from here.
Enter the name of the partner and the amount. Then Odoo 14 will help you automatically execute the reconciliation process.
The user can depend on manual action if any inconsistencies occur during the process. Mismatch in the name of the partner or omitting out the partner's name can be an inconsistency. In such cases add or correct partner name manually.
Odoo 14 also enables you to set Reconciliation models for easing reconciliation.
How to Create Reconciliation Models
Go to Accounting> Configuration> Accounting> Reconciliation Models.
I am going to create a reconciliation model now. For this, I will go to the Bank journal under the accounting application dashboard and use the more button to go to Reconciliation Models.
select reconciliation models now.
If you want to create a new reconciliation model use Create Button.
Let us take a case now. Suppose a company receives a bank fee cost based on the basis of the balance amount. Then we can find that the fee is variable.
To keep a document of this we can maintain model Bank fees. A new account can be created or an account can be selected to record these fees. It is also possible to mark account type. With Odoo the fee can be taken automatically following the already set parameters.
After completing all the procedures use the Save button.
To know more about Odoo 14 Accounting refers to our previously Published blog