Odoo 13 Community Edition

Invoicing

The user-friendly application Odoo ERP includes a well efficient and reliable invoicing module that can be integrated with all other Odoo modules such as sales, purchase, inventory, and many more. Using this module we can instantly generate Odoo invoices and can send them through email with few steps.

Before entering the invoicing module let me inform you that for getting the complete features in this module you want to activate the developer mode from the settings.

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Now you can move on to the user’s menu available in settings and there you can see the option Show Full Accounting Features under the technical settings. Enable this option for getting all the accounting features to your invoicing module. The image of the window is depicted below.

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Accounting Dashboard

The invoicing module of the Odoo community edition provides you with a structured and user-friendly accounting dashboard that will help you to manage all the accounting aspects of your company. You can conduct operations such as tax invoices, vendor bills, cash, export invoices, retail invoices, point of sale, expenses, miscellaneous operations, and bank reconciliations from the accounting dashboard itself. You can access the accounting dashboard directly by entering the invoicing module. The image of the accounting dashboard is depicted below.

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Here in this dashboard window, you can view the above-mentioned operations and you can select the menu icon available in each tab described in the platform.

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You can see the options for creating and uploading new invoices, bills, miscellaneous entries, bank account configuring options, etc in the respective tabs. If you are clicking on the three dots available at the upper right corner of each tab you will be depicted with a new drop-down menu along with the options view, new, and reporting. Under the view tab, there are options to navigate invoices, credit notes, payment matching, and journal items menu. You can create new invoices and credit notes by selecting the respective menu available under the new tab. Additionally, under the reporting section, you can view each report analysis.

For creating new invoices you can select the create option and you will be depicted with a new window where you can provide customer details, delivery address, reseller, can allocate invoice/bill date, payment terms, journal entries, company details. You can also add the product details by selecting the add a line option available under the invoice lines menu. It is also possible to add a section and a note under the invoice lines.

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Under the other info tab, you can provide the details such as a salesperson, sales team, accounting details, payment details, marketing details, import or export details.

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The data can be filtered and grouped by for sorting out required data using the default or customizable options available in the platform.

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So far we were discussing the accounting dashboard in the platform and now let us discuss the various configurations that are available.

Configurations

The platform provides various default configuration options and the menus available in the accounting module which will definitely help you to manage the financial aspects of the company. We can discuss each one below.

Bank accounts

In the Odoo platform, we can configure multiple bank accounts and can manage them easily by taking the route accounting- > configuration-> payment-> bank account. The image of the bank account window is given below.

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Using this window you can see the created bank accounts and can create several bank accounts by selecting the create icon. If you are selecting the create icon you will be depicted with a creation window as shown below.

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In the bank account creation window, you can provide the journal name and can allocate the bank account details and the currency used to enter the statement, also can define how the bank statement will be registered and can allocate the payment method types.

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So far we were discussing the configuration of a bank account in the platform. Now let us discuss the configuration of the chart of accounts.

Chart of accounts

A chart of accounts is a list of accounts used in the ledger of a business organization for recording the various business transactions of that organization. In the Odoo platform, it includes the balance sheet, or profit and loss accounts. Different companies can prepare a different chart of accounts depending upon the business requirements. This chart of accounts can be viewed from the configuration tab of the invoicing module by taking the route invoicing -> configuration -> chart of accounts.

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All the chart of accounts described in the platform can be viewed from the menu and you can also add new items by clicking on the create option available.

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Using this window, you can see the list of different account names, types of accounts, and can allocate company of operation details where you have the provision to select each account separately and can make desirable changes by clicking the edit button available. The image of the window is depicted below.

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After making sufficient changes in the window you can select the save button to mark changes. Now let us see how to create a new account on the platform. You can create a new account by clicking on the create button available on the top left corner of the chart of accounts window. The image of the window is depicted below.

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Here in this window, you can provide a code and name for the account and It is the identification mark of the respective account. Also, it indicates the account's purpose. After providing the name and code, the account type can be allocated and it is for the information purpose. To generate country-specific legal reports, also set the rules to close a fiscal year and generate opening entries. You can also define the default taxes and it will be applied if the account is selected for product sale or purchase. Additionally, you can allocate tags and account groups which is useful to list multiple accounts as sub-accounts of a bigger account. Moreover, the company and account currency can also be allocated. There are also other options such as allow reconciliation and deprecated. You can check the box near the option allow reconciliation if this account allows invoices and payments matching of journal items.

We have discussed the configuration of the charts of accounts and now let us move on to the next part tax configuration in the platform.

Tax configuration

The Odoo platform supports you to create and configure the various taxes for the credible operations of your company and the taxes menu can be accessed from the configuration tab of the invoicing module. The image of the window is depicted below.

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The platform will support a wide range of tax types such as value-added taxes (VAT), eco-taxes, federal /state/city taxes, retention tax and withholding taxes, and many more. The chart of accounts that you defined is automatically preconfigured with the main taxes of the country.

Now let us see how we can define new taxes in the platform.

You can create new taxes by accessing the creation window and for accessing the window you can select the create button available in the taxes window.

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In this creation window, you can provide the tax name, allocate tax computation, tax scope, and amount. The tax scope determines where the tax is selectable with sales, purchase, or none and the none means the tax can’t be used by itself however it can still be used in a group. Odoo provides you four different types of tax computation which are the group of taxes, fixed, percentage of price, percentage of price tax included. You can set active to false to hide the tax without removing it. The taxing rule for the repartition of invoices and credit notes can be configured under the definitions tab.

You can define the following fields under the advanced options tab of this window as depicted below.

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Here you can define label on invoices, tax groups, and allocate company details. If you are enabling the option include in analytic cost , the amount computed by this tax will be assigned to the same analytic account as the invoice line. You can enable the option included in price if the price you use on the product and invoices includes this tax. Additionally, affect the base of subsequent taxes and the reverse charges can be enabled or disabled. Also, the tax can be due based on invoices or based on payment.

As we clear on tax configuration in the platform and now let us move on to the next part, fiscal position.

Configuring Fiscal position

The fiscal positions in the invoicing module is a beneficial feature that helps you to place the tax according to the country’s tax policy. We all know that the major source of revenue for all governments is from taxes and each country follows different tax policies. So this feature will help you to operate with multiple currencies and company operations and you have the provision to configure the taxes and accounts specific to the country or region of operations.

The fiscal position of this module can be configured under the fiscal position menu accessible from the configuration tab. The image of the window is given below.

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In this window, you will be depicted with all the fiscal positions defined and you have the provision to edit the details by selecting the respective one and it is also possible to create a new one by selecting the create icon available in this window. The image of the creation window is given below.

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In this creation window, you can provide a name for the fiscal position and you can allocate a mapping by selecting the add a line option available under the tax mapping tab. You can provide a tax on products and a tax to apply for the fiscal position. Moreover, the account mapping can also be defined under the account mapping tab.

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So far we were discussing the fiscal positions in this platform and now we can discuss the configuration of journals.

Configuring journals

In this platform, all the financial documents associated with a company are recorded as a journal entry. The journals are an effective data recording aspect of the accounting operations as regards the transactions conducted. This will help to manage everything without making mistakes or wasting time and energy. The journal feature can be accessed from the configuration tab of the invoicing module and the image of the window is depicted below

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In this window all the journals described in this platform are enlisted and you can create new journals by selecting the create menu available. The image of the journal creation window is depicted below where you can provide a journal name, allocate type as sales or purchase or cash or bank or miscellaneous. Allocate the company details related to this journal and GSTIN.

Under the journal entries tab you can provide the various accounting details of the journal such as short code ( the journal will be named using this prefix), next number, default debit account, default credit account and the currency which is used to enter the statement.

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Under the advanced settings tab you can define the control access information such as allowed account type and accounts allowed. Additionally you can enable the option lock posted entries with a hash and if you are enabling this option the accounting entry or the invoice receives a hash as soon as it is posted and cannot be modified anymore. The image of the window is depicted below.

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Now let us move on to the journal types

Journal types

All the journal entries of this module should be configured for the operation under the journal types defined. That means by giving a journal type on journal entries you are specifying that the current journal comes under an accounting document. In this platform, the journal types can be defined under the journal types menu accessible from the configuration tab. The image of the window is depicted below and you can see all the journal entries defined in the platform and you can create a new one using the create option available.

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So far we were discussing the journals configurations in the platform and now we can move on to the next feature intercoms.

Intercoms

Intercoms are the abbreviation for international commercial terms. It is the series of fifteen sales terms described by the international chamber of commerce (ICC) which are globally accepted and used in both global and domestic business operations. This feature can be accessed from the configuration tab of the invoicing module where you are depicted with all the intercoms described in this platform and also you can create a new one using the create option available.

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By selecting the create button, you can create a new one using the same window itself where you can enter the code and name and select the save button to mark the changes.

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We discussed and made clear about the terminology intercoms and now let us move on to the configuration of payment terms.

Payment terms

The payment terms are the various payment methods followed by the customers and the company for making the payment of the product and services and it provides clear details about the expected payment on a sale. This module allows the user to define the various payment terminologies of the company operations. This feature can be accessed from the configuration tab of the invoicing module by taking the route

Invoicing module -> configuration -> invoicing -> payment terms

The image of the window is depicted below.

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Using this window, one can utilise different payment terms such as immediate payment, payment in 15 days, 21 days, 30 days, 45 days, 2 months, end of following month, 30% now and balance in 60 days, 30 % advance end of following month etc depending on the occasions. You can also define new payment terms by selecting the create icon available. The payment terms creation window is given below.

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In this window you can provide a name for the payment terms and can allocate the company details and the details that should be mentioned on the invoice can be provided in the box under the option description on the invoice. This is the payment terms explanation for the customer. You can define the terms by clicking on the add a line option where you will be depicted with a create terms window and here you can choose the term type and due date computation. The image of the window is given below.

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Odoo provides three kinds of term types named balance, percent, and fixed amount. You can select the term type depending on your business requirements. Moreover, the due date computation can be set based on the day after the invoice date, the last day of the following month, or the last day of the current month.

As we are clear on the configuration of payment terms and now let us move on to the analytical account option.

Analytical account

The analytical accounting feature of the Odoo platform can be used to determine the financial aspects of your business such as invoicing, purchase, and the various financial aspects involved to analyze the costs and revenue. With the support of Odoo analytic accounting, you can create analytic accounts, analytic tags without having to create more accounts in charts of accounts.

The Odoo analytic accounting can be used for several purposes such as analyzing the cost of the company, reinvoicing the time to a customer, and also analyzing the performance of a service or a project. Using this feature, one can generate reports that provide insights into the transactions from a different point of view. You can easily analyze the profit and loss in each department.

The analytical accounting feature in the Odoo platform can only be used if you enable the analytical accounting option from the settings menu under the analytics tab. The image of the window is depicted below.

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Now the analytic accounting option is available in the configuration tab of the invoicing module.

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All the analytical accounts can be defined in this analytical accounts window and you have the provision to edit them and can create a new one by selecting the analytical accounts menu

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If you are selecting the create button, you will be depicted with a new window like below where you can provide a name for the analytical account and reference, allocate customer details, and group them as projects, departments, or internal also you have the provision to create a new one by selecting the create and edit option. The window for creating the group is depicted below.

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The group is where one can add multiple analytic accounts and gets the results for all these accounts. After allocating the group you can provide the company details.

So far we were discussing the feature analytical accounts in the platform and now we can discuss the analytics tags option.

Analytics Tags

The analytical tags of the Odoo platform can be described under the analytics tag menu accessible from the configuration tab of the invoicing module. Using this feature, the revenue or expense can be distributed among the different analytical accounts. The image of the window is given below. In this window, we can see that all the analytical tags will be listed out and we can create a new one by selecting the create icon.

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The image of the creation window is depicted below and in this creation window, you can enable the analytic distribution option and can allocate a name for the analytic tag. Additionally, you can allocate the company details.

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This is all about the analytic tags feature in this platform and now let us move on to the next section.

Customer Invoice to Payments

Depending upon your business and the application you use, you can follow different approaches to automate the customer invoice creation in Odoo. Normally, draft invoices are made by the framework (data originating from different reports like sales orders or contracts) therefore, the accountants can easily approve or validate the draft invoice and send the solicitations in batch (by customary mail or email).

You can create a customer invoice on this platform directly from the dashboard by clicking on the New Invoice button and you can also create it by taking the route invoicing -> customers -> invoices.

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If you are clicking on the invoice button, you will be navigated to a new window where you can see all the invoices described in this platform and you have the provision to create a new one by selecting the create icon. The image of the invoices window is depicted below.

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The below image depicts the invoice creation window and in this window, you can allocate the customer, delivery address for the current invoice, registered reseller details, and the reference. You can also allocate the invoice date and the company which is related to this journal. Additionally, you can define the payment terms and currency used for the transaction.

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Under the invoice line tab, you can add the products that the customer wishes to buy via selecting the add a line option. You can add a description if any under the label menu. After entering all the details you can register the payment by clicking the register payment button available in the window

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If you click on the register payment button you will be navigated to a register payment window where you can define the journal as bank or cash and can allocate the amount, date, then click on the validate button.

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Now you can see that the invoice has been paid for. The image of the window is depicted below.

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And upon clicking the send & print button available on the top left corner of this window you will be depicted with a new window as shown below.

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Using this window you can send an invoice by selecting the send & print button. The sample pdf of the invoice is given below.

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If you are clicking on the preview button available in the invoice window, you can see the website view of the invoice as depicted below.

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After completing these steps, next what you want to do is to go to invoicing -> journals -> sales.

In the sales window of the invoicing module, you can see the journal entry that was automatically created for the invoice.

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Then you can click on them to get the journal entry with debit and credit balanced.

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Now you can go to the payment window to see the payment details. For that, you can go to

Invoicing -> Customers-> Payments. The image of the window is depicted below.

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In this payments window, you can see the invoice payment details such as date, invoice name, journal, payment method, customer details, amount, status, and the responsible company.

You can also access the corresponding journal items and the invoices by using this payments window.

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As we clear the invoice creation and payment in this platform and now we can move on to the next part of cash rounding’s.

Cash Rounding Methods

Cash rounding is possible when the base unit of an account is smaller than the most reduced denomination category of the currency. The amount that needs to be paid is adjusted to the closest variety of cash unit accessible, through exchanges paid in different ways such as cheques, credit cards, are not adjusted.

Cash rounding is an important aspect of any type of business. This business process enables the vendor to round off the cost of any request while instalment is made. Odoo not only supports cash rounding but also helps you to round the total amount of a bill to the nearest

This helps the vendor to create a more close and rounded figured bill.

For enabling this feature what you want to do is to go to settings and enable the cash rounding option from settings.

Go to Invoicing -> Configuration -> Settings -> Taxes -> Rounding method. The image of the window is given below.

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This platform provides two methods for cash rounding.

1. Round per Line: The round per line method can be used when the price is tax included and this method will help to calculate the sum of line subtotals as equal to the total with taxes.

2. Round Globally: This method is used when the tax is included but it adjusts on the total tax amount.

Now you can create cash rounding through Invoicing -> Configuration -> Management -> Cash rounding.

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Then you will be depicted with a new window as shown below and in this window you can see all the cash rounding’s described in the platform and you have the provision to create a new one by selecting the create button.

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If you are selecting the create button, you will be depicted with a new creation window as shown below and using this window you can create a new cash rounding method in Odoo.

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In this window, you can provide a name for cash rounding’s and can describe the rounding precision which is the numeric value describing the number of digits expressing the particular value both left and right of the decimal. The rounding precision will also affect the rounding of the computed value. The next field that you need to describe is the rounding strategy. Here we can specify which way will be used to round the invoice amount to the rounding precision. In this field, you have two options. Add a rounding line and modify the tax amount. In the add a rounding line method, you can add the rounding in a new line, and in the case of the modify the tax amount, you can add the rounding to the highest tax amount. Then allocate the account and the rounding method, using this method you can define to which precise value it is rounding, which can be either up, down, or half-up.

This is all about the cash rounding aspects in this module and now let us discuss the multi-currencies in the platform.

Multi-currencies in Odoo

The multi-currency option in Odoo will allow you to send sales invoices, quotes, and purchase orders or receive bills and payments in different currencies. If you are enabling this option you will be able to conduct transactions other than your own currency. Using this option you can also set up bank accounts in other currencies and can conduct reports on your foreign currency activities

For enabling this option you should go to Invoicing -> Configuration -> Settings -> Currencies -> Multi currencies. Now you can enable the option of multi-currencies. The image of the window is given below.

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Now you can access the multiple- currencies option from the invoicing module by taking the route Invoicing -> Configuration -> Accounting -> Currencies. The image of the currencies window is depicted below.

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Using this window you can add more currencies by activating the other currencies option.

Exchange gain or loss journal.

This unique feature allows you to record the difference between the payment registration and the expected amount. That is if the instalment is paid two months after the receipt was issued, there might be the chances for the variations in the exchange scale. The variations will bring some misfortune or benefits that are recorded by Odoo.

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The enabling of the multi- currencies option allows you to manage multiple currencies at the time of creating an invoice. Using this invoicing module, you can instantly generate Odoo invoices and can send them through email in just a few clicks. The flexible and user -friendly invoicing module helps businesses to track your sales and manage your finances.

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