1.5 Reconciliation: Introduction to Odoo Accounting


Reconciliation is an accounting practice in which two kinds of records can be successfully compared in order to check whether these records are proper and in agreement. Reconciliation is the right method to identify any inconsistencies between them. This method is helpful for substantiating that the accounts in the general ledger are uniform, precise, and complete.

In the case of Account Reconciliation, it will be beneficial to describe the difference between two financial records or account balances. That means the system allows you to ensure the money that drops from an account matches the money that is actually spent. This adequate method is very comfortable for ascertaining that the balances after each accounting period are equal. Little kinds of differences may be reasonably caused by the time of payments and deposits. However, the unauthorized discrepancies will be identified successfully. You can reconcile your records as a basis of daily, monthly, or yearly.
In the Odoo platform, you can see both Payment Matching and Bank Reconciliation. These two methods are used for matching and reconciling entries. Let us discuss each one below.

Payment Matching

In the Payment Matching method, the strategy applied is that the invoice created or the bill created will be compared against customer payments or vendor payments. As an example, suppose a customer invoice is created and registered payment from the invoice. The payment matching will be performed automatically. However, when the customer payment is added, the payment should match the invoice.

Bank Reconciliation

The Bank Reconciliation procedure is very effective for helping the user to match an individual or an organization’s cash account information to bank details. Using the comparing method, the bank reconciliation enables an organization to understand whether there are any dissimilarities in the account. With these advanced advantages, an organization will be able to obtain fast corrective actions if any variances are found.

Bank reconciliation is to match the system payment entries with the bank statement. As per the above example, the customer invoice is matched with the customer payment. Now the next is to match with bank statements. There will be an entry in the bank statement corresponding to the invoice. Now reconciling with the bank statement will be termed as bank reconciliation.



Cybrosys Technologies Pvt. Ltd.
Neospace, Kinfra Techno Park
Kakkancherry, Calicut
Kerala, India - 673635



Cybrosys Technologies Pvt. Ltd.
1st Floor, Thapasya Building,
Infopark, Kakkanad,
Kochi, India - 682030.



Cybrosys Techno Solutions
The Estate, 8th Floor,
Dickenson Road,
Bangalore, India - 560042

Send Us A Message