Chapter: 3 - Configuration tools in Accounting module

Defining Journals

Journals are one of the vital aspects of accounting operations in any company as they will define the distinctive operations as categorizing and the financial operation is based on it. Every business all around the world will maintain a journal entry of the financial operations conducted both credits as well as density which will be done in favor of the company. Moreover, the Journals are defined based on the operations of the business and a Journal record is maintained to define the operations in it which in earlier days were one in pen and paper and has been digitized now with the impact of digitalization. The Odoo Accounting module supports the aspects of creation and management of Custom Journals as per the need with the help of a dedicated Journal management menu where all the Journals are defined as depicted in the following image. Here, the Journal Name, Journal Type, and the Journal Group of the respective Journals are being defined. You will also have Filters, Group By, and Favorites options available helping you to retrieve the required journal from the long list of Journals that are being described. Moreover, in Odoo you can define the Journal Types based on the default ones which have been defined in the platform, and in Odoo it’s a must that you choose a Journal type for a respective Journal which is being defined. Here, you can select a Journal as one of the following types: Sales, Purchase, Cash, Bank, and Miscellaneous. The Sales Journal is used to define all the Sales operations entries of an organization likewise the Purchase journal defines all the purchase operations of the company. Similarly, the Cash Journal will define all the cash operations entries with respect to the functioning of the company. Moreover, the same is in the case of Bank Journal where all the Bank based transactions are being entered.

However, in the case of the Miscellaneous Journal, all the entries which do not fall into the other journal are being defined over here. The Journal entries such as Inventory Adjustment, Exchange Record, Salary Slip details, and many more.

Defining Journals

You can create a new Journal by selecting the Create option available which will direct you towards the window as depicted in the following screenshot. Here, the Journal Name, and Type can be defined. Under the Journal Entries menu, the Accounting Information such as the Default Income Account as well as the Short Code can be defined by creating new or selecting it from the drop-down menu available. Moreover, you can enable or disable the Dedicated Credit Note Sequence which will configure whether the Invoices, as well as the Credit notes which are being described in the operations, require the same sequence on the number or not. The Short Code for the journal entries can be defined here which will ensure that the invoice and the credit note entries start with the respective code provided. Here the Short Code is described as INV and then when the invoices are generated it will start with the term INV and further with the sequence number. Additionally, there is an option to Send Messages as well as describe a Log Note to the followers of the respective Journal. These followers are the other users of your Odoo platform who are the employees working in your company. The Log Note will help to register the changes done by the employees and describe it along with the date and time.

Defining Journals

Furthermore, you can schedule an activity with the followers or an external person, or a party to discuss the various aspects of the respective Journal. The scheduling can be done with the help of a calendar helping you to schedule the activities which do not coincide with other activities and company operations with the same date and time. In addition, there is an Advanced Settings menu available in the Journal description menu.

Under the Advanced Settings the Control Access details such as the Allowed Account Types, and the Allowed Accounts can be defined or can be selected from the drop-down menu. You can also enable the option Lock Posted Entries with Hash helping you to lock the entries to the respective Journal with a hashtag to it. This will ensure that an Invoice created under the respective Journal cannot be Reset to Draft or modified in any form once it's posted. You can also configure the option Create Invoices upon Emails where you have the directly to the menu where you can Configure Email Servers which will ensure that once an email is being received under the respective server domain an invoice will be created. Here the Customer invoices will be created in the respective journal which is being defined which will be a helpful feature for the business operations to implement the automated invoice generation upon the order revival form the customers.

Additionally, the Electronic Data Interchange configuration of the Electronic Invoicing the Factor-X(FR) can be enabled or disabled. Moreover, the Payment Communication configuration option, the Communication Type, and the Communication Standard can be defined. This will be helpful in the operations of the customer invoice payment where a communication reference will be available. The same reference can be used by the customer while generating the payment for the invoice. The Follow Customer Payment option Schedule Activity can be defined by selecting the activity from the drop-down menu.

Defining Journals

The Journal creation and configuration of the Sales, Purchase, and Miscellaneous types of Journals are the same in Odoo. As we have described the operation of the Sales Journal type, let's now move on to understand the configuration aspect of the Bank Journal which is configured in a different way than the Sales, Purchase, and Miscellaneous Journal types.

If the Journal Type is chosen as Bank you will need to define the Journal Entries aspects such as the Accounting Information and the Bank Account Number details. Under the Account Information the Bank Account, the Suspense Account, Shortcode, and the Currency Details can be defined. The Suspense Account is used until the Bank Account is reconciled to the payments, here the Suspense Account acts as a temporary holding up until reconciliation of the bank statement transactions for the respective journal operation. Further, under the Bank Account Number, the Account Number and the Bank Feeds can be selected as Undefined Yet, Automated Bank Synchronization or as Import (CAMT, CSV, OFZ, QIF) should be selected. Upon choosing the Import option the details can be imported from the dashboard. Furthermore, if the Automated Bank Synchronization is enabled the Odoo platform will fetch the Invoice payment details directly from the bank servers, and in the dashboard, you will obtain the review on the synchronized operations moreover, there will be an online synchronization option available.

Defining Journals

Furthermore, the Payment Configuration details such as the Incoming as well as the Outgoing Payment details can be defined. Under the Incoming Payments, the Outstanding Receipts Account can be chosen from the drop-down list. Furthermore, the Methods such as Electronic, Batch Deposit, SEPA Direct Debit, Manual, and the ones which have been defined can be enabled. Under the Outgoing Payments, the Outstanding Payment Account can be selected from the drop-down menu. The Methods can be SEPA Credit Transfer, Manual, or Checks. Moreover, the Check Printing option the Manual Numbering can be enabled based on the need.

The operations of the Outstanding Account operations are as follows; once the customer generates the payment for the invoice it would never directly be credited to the bank account rather it will be defined in the Outstanding Receipts Account which can be defined here. Once the Bank statement, as well as the payment, is being reconciled either automatically or manually then only the payment will be credited to the Bank account of the company. Similarly, in the case of purchase payment, the amount for the vendor bill will be initially generated from the Accounts payable and will be moved to the Outstanding Payments Account further then when the bank statement reconciliation occurs with respect to the vendor bill bank will be credited. Further during Reconciliation, the respective transaction will be Reconciled with the outstanding payment entries instead of the Payable Account.

The Advanced settings configuration is similar to that of the Sales, Purchase, and the Miscellaneous accounts, and the respective account operations details can be configured for the Cash as well as Bank Journals based on the operational needs.

Defining Journals

In this manner, you will be able to define and edit the Journals where the Journal entries will be defined for the finance management operations. As we are clear on the aspects of defining Journals and managing them, let's now move on to understanding the Journal Groups which will help classify the Journals which are being defined in the next section.

Group your journals

Classification is a vital aspect in the operations of a business where you can group various aspects of the business operation, helping you to divide the entire operation into miniature tasks. In the Odoo platform, you have defined multiple Journals for the running of the finance operations of accounting in your company. There are chances that you will mix up the Journals and their entries. Therefore, the Odoo platform has a special feature to Group the Journals. This advanced feature will help in the classification aspects of the journals that have been created.

You can access the Journal Groups menu from the Configuration tab of the Accounting module where all the Journal Groups that have been described will be depicted. You can also create new Journal Groups by using the Create option available. Once you select to create a new line will appear in the listed out menu and you can provide the Journal Group name and allocate the Excluded Journals. In the menu, you will also have default as well as customizable Group By and Filtering options helping you to sort out the required Journal Groups.

Defining Journals

The Journal Grouping functionality that is available in the Odoo Accounting module will be a useful feature helping you with the Filtering as well as Group by aspects of the various operations of the Journal and its financial operations. In Odoo reporting as well as report generation are some of the advanced features which the platform puts forward. Moreover, in any of the Accounting based reporting functionality in Odoo, you will obtain a filtering tool where the Journals Types can be used as a filtering aspect helping with the effective operation.

The Chart of Account Types can be also be selected for the respective one while defining it, this will be beneficial for the filtration aspects of the accounting information with respect to the Chart of Account Types which are being defined.

Defining Journals

The Journal Group functionality will help the finance department of your company to run the Journal management operations with ease. As we are clear on the aspects of Journal Groups let's now move on to understand the Currency Management aspects of the Odoo Accounting module in the next section.



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