Chapter: 3 - Configuration tools in Accounting module

The Odoo Accounting module is the complete finance and accounting management tool for any form of business operations equipped with advanced features and operational capabilities. In the previous chapter, we were discussing the options and tools available in the Settings menu of the Accounting module. As we are clear on that, let's now move on to understand the configuration tools as well as the menus available in the Accounting module in this chapter.

In this chapter, we will be covering the configurational tools available in the Odoo accounting module such as:

  • Accounting configurations
  • Payment Options
  • Asset Models
  • Analytical Accounting
  • Configuring Invoicing
  • Configuring bank Payments

Each of the options available under these configuration tools will be described and discussed in detail.

Accounting configurations

The Accounting configuration holds the primary priority of configuration which needs to be set up before running the financial management operations of the company. This is because once the aspects of accounting configurations are set up changing them will be entirely difficult thus affecting the overall operation of the company. Two of the primary aspects that need to be configured under this tab will be the Chart of Accounts and Taxes which should be configured at the initial stage of the business operations to be operational. Let's have an understanding of the configurational aspects of Accounting one by one in the following sections

Creating Chart of Accounts

The Chart of Accounts is one of the most important parts of financial management operations in a company, it is considered as the index of all the financial operations in a company with a complete insight on the general ledger of the company being defined. Moreover, it will provide the complete and clear cut information of the financial operations being conducted in terms of the company during a financial term and well classified based on the categories and ease of recording. In further terms, it can be said as a bookkeeping tool for the financial operations usable by accountants, managers as well as the concerned executives of a company as they can get a full picture of every accounting operation that is being conducted.

Odoo supports double-entry bookkeeping, always ensuring that the records of your financial operations stay well defined and recorded for future use. One of the initial aspects of starting your financial management with the Odoo Accounting module is that you should configure the Chart of Accounts because all the further operations are defined based on it. You can create custom charts of accounts as per your operational need helping you to have full control of the management of the financial operations.

You can create a custom Chart of Accounts in the Chart of Accounts menu available under the Configuration tab of the Accounting module. Here all the Chart of Accounts derived from the platform will be depicted. Moreover, if you need to obtain a specific Chart of Account you can use the search bar. Furthermore, there are Filtering as well as Group By options available in the menu helping you to obtain the desired Chart of Account. The following image depicts the Chart of Accounts menu. Here the Code, Account Name, and Type of the Chart of Accounts will be depicted. There is also an option available that can be enabled and disabled to configure the Reconciliation of the respective chart of accounts.

You can choose the Account Type to be the one from the ones which are defined by default. The Accounting type can be either Asset, Liability, Equity, Profit & Loss, Expense, or Other. Moreover, there are numerous subtypes of accounts that are available under all these defined Types of Accounts. Furthermore, the Hierarchy of the Chart of Account operations of the Odoo platform can be configured during the development of the platform. Once your business operations are being defined the right experts of Odoo development will be able to craft and create the hierarchy of operations for the respective chart of accounts. In the Chart of Accounts menu, the hierarchy can be viewed by selecting the arrow options that are available on the left side of the window where the numbers are being depicted. Each of the numbers can be selected and expanded using the arrow options and you will be able to view the respective hierarchy of operations.

Additionally, the respective Journal entries with respect to the Chart of Account can be defined this will provide an insight on the financial operations of the Chart of Accounts in the company. In addition, the Taxes of operations by default for the respective Chart of Account can be defined this will ensure that the financial operations conducted are along with the taxes which have been defined. Moreover, you can define and select the tax for the respective chart of accounts based on the region of operation of the company.

To stop the usage of a respective Chart of Account you can select it to be Deprecated you can enable the respective option in a Chart of Account editing menu. However, the option will be only visible for the Chart of Accounts which are in operation. Once you need to stop using and running with a Chart of Account you cannot directly delete it from operation as it contains the entire and financial data of operations that were being used and much value in the future. What you can do is stop its operations in the finance management however you will have the respective entries and data of the Chart of Account but not in operation. This can be done in Odoo by enabling the Deprecate options that are available under the respective menu.

Configuration tools in Accounting module

To create a new Chart of Accounts you can choose the Create option available which will bring in a new line for describing the new Chart of Accounts. You can provide the Code, Account Name, and Type of the Chart of Account along with configuring the Reconciliation option. In addition, you can make use of the SETUP option available under each of the Chart of Accounts to move on to the configuration aspects of the respective Chart of Account. The following image depicts the configuration window of a Chart of Account. Here all the information such as the Code, Account Name, Type, and Group of the Chart of Account will be described just as depicted in the previous menu of all the Chart of Accounts. Furthermore, there are options to enable or disable the Reconciliation as well as the Deprecation of the Chart of Accounts.

The Accounting Options available in the configuration of the Chart of Accounts allow you to define the Default Taxes, and the Tags allocated which can be selected from the drop-down menu. In the Security tab, the Allowed Journal for the respective Chart of Account can be specified from the dropdown menu. Additionally, the Deferred Expense Options of Automated Deferred Expense can be set as No, Create in the draft, and Create and validate. To view the Journal Items concerning the Chart of Accounts you can select the Journal Items menu available in the right corner of the respective Chart of Accounts menu as shown in the following image.

Configuration tools in Accounting module

You can create an N number of Chart of Accounts. based on the requirement of the company operations which will be helpful for you to define the accounting operations of every finance management. Let's now move on to understand the aspects of Configuring Taxes on the company operations based on the region.



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