Basic Configurations
CONFIGURING A NEW BANK ACCOUNT
Utilizing Odoo, one can manage multiple bank accounts. The user can easily add, update or delete their bank account following few simple steps.
Configuration
Go to Accounting> Configuration> Payments> Bank Account
You can see a rundown of several bank accounts created by Odoo. However, one can edit it prior to filling the relevant bank information.
CONFIGURING CHART OF ACCOUNTS
A chart of accounts is a rundown of the names of the accounts that an organization has recognized and made accessible for the recording transactions in its general ledger. An organization has the adaptability to tailor its chart of accounts to best suit its needs. This is determined via consequently reporting the profit and loss balance in your balance sheet report.
Odoo provisions the end client to utilize the predefined charts of accounts, encompassing all basic configurations like tax codes and fiscal localization packages. However, one can also create their own chart of accounts in Odoo.
For that go to Accounting-> Configuration-> Accounting ->Chart of Accounts.
One can see the rundown of different account names. Upon clicking any, one can make sufficient edits to the existing. Click Save button to mark changes.
Upon clicking CREATE button, you will be navigated to a new window like below:
One can include the details like: Tax code, Account Name, Account Type (Account type is used for information purpose, to generate country specific legal reports, and set the rules to close a fiscal year and generate opening entries), Default taxes, Tags for Custom Reporting, Group, Company, and Account Currency (Forces all moves for this account to have this account currency).
CONFIGURING TAXES
Odoo's tax engine is very adaptable and it comes supportive to a wide range of tax types like value added taxes (VAT), eco-taxes, federal/states/city taxes, retention, withholding taxes and so on. For most nations, the system is pre-designed or configured with the right taxes.
Configuration
In order to define new taxes for various use cases.
Go to Accounting> Configuration-> Invoicing > Taxes
From this menu, you get all the taxes you can utilize: say sales tax or purchase taxes.
Upon clicking the desired, you will be navigated to a new window just like below:
The creation form will have the following attributes:
- Tax Name: Name of the tax
- Tax Scope: The field defines where to use this tax. If you select ‘None’, you can only use this tax with other tax group. Odoo provides with Sales, Purchase, None (for example belittled or deprecated expense) and Adjustment.
- Tax computation: Odoo have four different types of tax computation-
- Group of taxes
- Fixed
- Percentage of price
- Percentage of price tax included
Under Advanced Options Tab,
- Label on Invoices: This can be used on the invoice report to represent this tax. One can add custom tags to create custom reports.
- Included in analytic cost: If we set this option, then the amount computed by this tax will assign to the same analytic account mentioned the invoice line.
- Included in price: Set this option if this tax is included in the unit price of the product/service.
- Affect base of subsequent taxes: If you set this option, Base amount of subsequent taxes will be sum of current base amount and tax amount of this tax.
- Tax Due
- Based on Invoice: The tax is due as soon as the invoice is validated.
- Based on Payment: The tax is due as soon as the payment of the invoice is received.
CONFIGURING FISCAL POSITIONS
Odoo can handle Multi Company and multi-currency concepts. This feature is for helping the business organizations who are dealing with outstation clients, be it the Customers or the Suppliers. Both team may be operating from another country or states. Therefore, the laws and regulations with respect to taxes will be different for each other. Fiscal position comes in handy for such business circumstances. Using Odoo’s fiscal position one can seamlessly map taxes and accounts specific to that country.
Configuration:
Go to Accounting > Configuration > Invoicing > Fiscal Position
One can either create a new fiscal position corresponding to the nation of your supplier/customer or edit/use the existing fiscal positions in Odoo.
Tax Mapping: Tax mapping is another useful option to configure taxes. For example, imagine a product have 10% tax rate in one state and 15 % tax rate in another state. Using Tax Mapping and Accounts Mapping one can easily manage them under Odoo fiscal positions.
CONFIGURING JOURNALS
All your bookkeeping sections or accounting entries need to show up in an accounting journal. An accounting journal is a record of transaction exchanges requested by a date. So you ought to make a Sales Journal for customer invoices, a Sales Refund Journal for customer credit takes notes, a Purchase Journal for supplier invoices, a Purchase Refund journal for supplier credit notes and a Bank Journal for bank exchanges. However, one can also add different journals in Odoo.
Configuration
Go toAccounting > Configuration > Invoicing > Journals.
Upon clicking Journals, you will be navigated to a new window, where Odoo enlists with different Journal Types like Customer Invoices, Vendor Bills, and more.
Upon clicking the create button, you can add a new accounting journal in Odoo.
The creation form includes:
- Journal Name: The field defines the name of the accounting journal.
- Type: There are five types of journals in Odoo.
- Company: The company related to this journal.
- Short Code: The journal entries of this journal will be named using this prefix.
- Next Number: The next sequence number will be used for the next invoice.
- Default Debit Account: It is the default account for debit amount.
- Default Credit Account: It is the default account for credit amount.
- Currency: The currency used to enter the statement.
Under the Advanced Settings option
Lock Posted Entries with Hash: If ticked, the accounting entry or invoice receives a hash as soon as it is posted and cannot be modified anymore.
CONFIGURING INTERCOMS
Incoterms is the abbreviation for International commercial terms. Fifteen terms of sale are accepted worldwide in a task of expenses and responsibilities among purchaser and merchant. Essentially, Incoterms are exchange/trade terms distributed by the International chamber of commerce(ICC), and it is widely used in both global(international) and local (domestic)exchange contracts. In other words, Incoterms divide the transaction costs and responsibilities between the buyer and seller and reflect the state of art transportation practices.
Configuration
Go to Accounting > Configuration >Invoicing > Incoterms
Upon clicking the Incoterms, you will be navigated to a new window just like below image:
Odoo rundown a list of Incoterm for your business, however one can create a new Incoterm via clicking the CREATE button.
Upon clicking the create button, you can enter the Name: Incoterm Name and Code: Incoterm Standard Code for the intercom.
Click SAVE to mark changes.
CONFIGURING PAYMENT TERMS
Business organizations often indulge in different payment collection and different payment making methods. Under many cases, the payments to suppliers or the payments from customers comes as installments. To help the business with that case of payments, Odoo offers with certain set of features envisioning different configurations and different payment methods. Under Odoo, it is titled as Payment terms. One can set different payment terms in Odoo and utilize them for both customer bills and vendor bills.
Configuration:
Go toAccounting>Configuration> Invoicing>Payment Terms
Upon clicking the payment terms option, you will be navigated to a new window just like below,
One can use different payment terms like, immediate payment, 15 days, 21 days, 30% advance and balance after one month, etc. depending on different situations.
Via clicking on CREATE button, under Odoo one can create new payment term depending on the business operation.
Here one can create a new payment term, say “20 % advance within 3 days and balance in 10 days”.
Later give a payment term description detailing the payment term in the provided space. The end user can see that this description will be displayed in the invoice or the sale order.
Later add the terms, click on 'Add Item' and add the details of the term. Please note that the last line of terms always should be the 'Balance', otherwise a warning message will be displayed while attempting to save the payment term and we can’t save it.
When we add a new line, we will get redirected to the following wizard.
From the wizard, one can choose the Term Type and the Due Date computation method.
Under Odoo there are 3 kinds of Term Type,
- Balance
- Percent
- Fixed Amount
One can select the term type according to the business need.
Just below the Term Type, there is the option for selecting the Due Date computation method for that particular Type. The options are explained below.
Day(s) after the invoice date: The amount should be paid within the specified days after the invoice date.
Last day of following month: The amount should be paid within the last day of following month
Last day of current month: The amount should be paid within the last day of current month
Upon setting the terms, click SAVE button for saving the particular payment terms. After this, one can seamlessly set the particular payment term in Partner master or Sale order or Invoice.
One can set the payment terms in:
- Sale Order or Quotation
- Invoice
- Partner Master. Upon selecting partner, the payment terms will be automatically added to invoice or sale order.
CONFIGURING FOLLOW-UP LEVELS
It is fundamental for your business to gather installments or collect the payments when they are past due. Odoo will enable the end user to recognize payments that are late and will enable the end user to send appropriate reminders.
Configuration
Got to Accounting>Configuration> Invoicing >Follow-up levels
By default, follow-up plan is made accessible in Odoo, however one can tweak it any way you need. Depending upon the number of past due days, plan to send an email, a letter or to attempt a manual activity, one can customize their follow-up level in Odoo. You can likewise alter the format utilized for the announcement as indicated by the phase of the procedure.
Upon clicking CREATE button, you will be navigated to a new window like below:
CONFIGURING FISCAL YEARS
A fiscal year (FY) is a period that an organization or government utilizes for bookkeeping purposes and preparing budget summaries. The fiscal year changes among nations and is basically utilized for financial reporting by business and different associations. A fiscal year may not be same to a scheduled calendar year, however for tax purposes, the Internal Revenue Service (IRS) enables organizations to be either calendar- year tax payers or fiscal-year taxpayers.
One can configure fiscal year via clicking the button CONFIGURE under FISCAL YEAR segment.
Here, the user can add relevant details like Name, Start Date, End Date and Company and create a new fiscal year pertaining to company policy.
By default, the fiscal year starts with the 1st of January and ends on 31st of December, as those are the most common opening and closing dates. However, one can change the dates depending on your company.
One can also configure the fiscal year, via going to Accounts-> Configuration-> Settings.
Tick the option Fiscal years under Fiscal Periods option.
Much of the time, the fiscal year lasts for 12 months. In the event that it is your case, you simply need to define what is the last day of your fiscal year in the bookkeeping settings. By default, it is determined to be 31st December.
However, as we said forth, there may be a few special cases. For instance, if your business organization’s fiscal year, lasts pretty much than a year. In this case, you would need some extra arrangement.
Configuration
Accounting -> Configurations->Accounting-> Fiscal years
You would be able to configure your fiscal year here via clicking on the link Fiscal Year.
CONFIGURING BUDGETARY POSITIONS
Overseeing budgets is seen as a fundamental element for sustaining a business. It enables the individuals to quantify the real financial performance against the arranged one. Odoo deals its budget utilizing both General and Analytic Accounts.
Budgetary Positions
Budgetary positions are the general accounts for which you need to keep spending plans (regularly cost or salary accounts). They should be characterized so that Odoo can know, which accounts he needs to go get the budget data. Some may be already introduced with your chart of accounts.
Configurations
To define the budgetary positions, go to Accounting>Configurations>Accounting> Budgetary Positions.
The end user can define here in the field; which accounts relates to the project's expenses. One can make a position and add a line to select accounts.
Upon clicking Add a line button, you will be navigated to a new wizard, from where you can choose the specific number of accounts used.
Click on Select and Save the changes to conform Budgetary Positions in Odoo.
Repeat the very same steps for creating revenue budgetary position. However here, one can only select the relevant income accounts.