Odoo 14 book

Accounting and Finance Management

Finance management of any company operations will be trickier as numerous parameters involved in the management as it revolves around the entire company operations. An efficient management tool for the accounting and the financial aspect of the company will provide the accountants in the finance managers with a release of burden from then shoulders. Odoo provides the user with an excellent, efficient and reliable finance and accounts management for the company.

Odoo accounting and finance management operates with numerous main modules as well as supporting modules which will add up to the management features. In addition, these modules are interconnected with other modules of the platform to be indulged with the entire company operations. The reliability and the real time data operations and management are the key aspects of the Odoo platform which can be well executed in the financial aspects of the company with Odoo.

The salient features of Odoo accounts and financial management are:

  • Quick reconciliation.
  • Automated synchronization
  • Batch operations
  • Third party device and software integration
  • Follow ups operations on payments
  • Payment automation
  • Automated alerts and warnings
  • Business intelligence integration
  • External payment gateway integration
  • Analytical and quantitative reporting
  • Data exporting and import functionality.

And many more which makes the Odoo platform stand high among its competitors.

The methodology of the Odoo accounting modules operation is sophisticated and it provides a full supervision over all the accounting aspects of the company. The following are the terminologies on which Odoo manages to operate.

Double entry bookkeeping

Maintain record of every financial operation on journal and maintains double entry bookkeeping for the company financial data.

Accrual and cash basis method

This allows the users to keep the record of income and the coast at the instance of the transactions exchange operations takes place in Odoo

Multi-company operation

This allows the user to manage multiple companies in the platform which have separated financial terminologies of operations, ledgers, chart of accounts and other accounting aspects.

Multi-currencies

Odoo being an internationally used management software supports more than fifty currencies of the world. In addition, the user can define a new one in the platform with the help of an expert developer and as per the standard and regulations.

Accounts receivable and payable

The Odoo platform allows the users to manage the operations of accounts receivable and payable which can be defined under the cart of accounts section of the platform. In addition, the payment for each customer, vendor and even product can be configured based on the operation

Generate budgetary reports
  • Performance reports (Profit and loss, budget variants etc.)
  • Position report (Balance sheet, aged reports etc.)
  • Cash report (Bank summary)
  • Detailed report (Trial balance, ledger reporting etc.)
  • Management reports (Budget, executive summary etc.)
Reconciliation

Bank reconciliation feature of Odoo will allow the users to import bank statements of the company directly into the platform.

Inventory valuation

The inventory valuation of the feature of the Odoo can be configured to be operated automatically or can be done manually.

Easy retained earnings

The earnings of the company can be automatically ascertained by the Odoo automatically in real time for the present year. This is achieved by the constant report generation of the profit and loss operations of the company by Odoo.

Accounting dashboard

The Odoo platform provides the user with an efficient and reliable accounting dashboard to deal with the accounting aspects of the company. The user can create invoices, vendor bills, other miscellaneous operations and the bank operations from this dashboard.

odoo-accounting

On Selecting the menu icon available in the respective tabs described in the dashboard.

odoo-accounting

The user can select to add new invoices, bills, miscellaneous entries, exchange differences etc. using the create new options available with respect to each tab. Under the view tab the user can view the invoice menu, credit notes and payment matchings. Additionally, under the new tab the user can create the invoices, credit notes and upload invoices to the platform.

To generate a new invoice, the user can select the create option. Provide customer details, delivery address, taxation allocated, date, due date and journal entry. The user can add products with respect to the sales to the invoice by selecting the add a line option available under the product lines menu. A note and the section can be also added under the invoice lines.

odoo-accounting

Under the other info tab, the user can define the customer references, sales person, sales team, bank details, accounting details and fiscal position.

odoo-accounting

The various reporting aspects of the dashboard will allow the user to generate reports on invoice analyst, aged reports and follow up reports.

odoo-accounting

Additionally, in the accounting dashboard the data available can be filtered and grouped by for sorting out the specific required data using the various default as well as customizable options available.

Configurations

There are various default configuration options and menus available in the accounting module which will help the users with the financial aspects of the company for the users.

Bank accounts

The user can add a bank account by selecting the add a bank account option that can be accessed from the configuration tab of the module.

Here the user can choose from the bank accounts available and connect with it, if not the user can select the create option available

odoo-accounting
Chart of accounts

The carts are accounts information which are described to be used in the various business operations of the company. The chart of accounts operation will help the user with the description of the various financial operations conducted in the company based on the ledgers defined. These charts of accounts can be viewed from the menu accessible from the configuration tab. All the charts of accounts described in the platform can be viewed from the menu and the user can select to add the new ones using the create option available.

odoo-accounting

On selecting to create a new chart of account the user can define it in the menu itself providing the code, account name, type, enable or disable reconciliation, and allocate a company of operation.

odoo-accounting

Under the setup window available under each of the chart of accounts the users will be provided with the various operations to describe the accounting aspects of the respective chart of account.

odoo-accounting
Taxes

The taxes of the company operations are an aspect which is unavoidable as it would allow the companies to stick to the authoritarian rules imposed by the governments of the operational regions. The Odoo platform allows the users to create and configure various taxes for the company operations under the taxes menu accessed from the configuration tab of the module.

odoo-accounting

The user can create a new tax using the creation window available. In the creation window the user can provide the tax name, tax computation, tax type, tax scope and amount. The user can activate the tax to operate by enabling the activate option. The taxing rule for the distribution of invoices and credit notes can be configured under the definitions tab.

odoo-accounting

Under the advanced options menu, the user can assign the label on invoices, tax group, and company to which the tax is allocated. The options such as including the taxes in the price, affect the base of subsequent taxes and the reverse charges can be enabled or disabled.

odoo-accounting
Fiscal positions

The fiscal position of the accounting operations will help the users operating with multiple currency and company operations. The fiscal position will help the users to configure the taxes and accounts specific to the country or region of operations. The fiscal positions of the platform are defined under the fiscal position menu accessible from the configuration tab. In the menu the user will be depicted with all the fiscal positions defined and the user can edit the details by selecting the respective one and the user can also create a new one using the creation window available.

odoo-accounting

In the fiscal position creation window the user can provide a name for the fiscal positions. Under the tax mapping the user can allocate a mapping by selecting the add a line option available. Provide a tax on product and a tax to apply for the fiscal position. Additionally, the account mapping can also be provided under the respective menu.

odoo-accounting
Journals

The book keeping is an important aspect while dealing with the accounting operations of the company. The journals are an efficient data recording aspect of the accounting operations with respect to the transactions conducted. The journals menu can be accessed from the configuration tab of the accounting module. Under the journals menu all the journals described in the platform are listed out and the user can create new ones.

odoo-accounting

In the journal creation window the user can provide a journal name, allocate type and the taxing information. Under the journal entries the various accounting information of the journal can be defined such as profit account, loss account, default income account, dedicated credit note sequence can be enabled or disabled and the short code for the journal can be assigned.

odoo-accounting

Under the advanced settings the control access information such as allowed account types, allowed accounts and icon posted entries can be enabled. There are also various options for electronic data interchange and follow customer payments can be configured. Additionally the payment communications for the communications type and the communications standard can be configured.

odoo-accounting
Journal types

The journal entries of the platform should be configured for the operation under the journal types defined. The journal types for the platform can be defined under the journal types menu accessible from the configuration tab. Under the journal types the user can view all the enlisted ones and can create new one using the create option.

odoo-accounting
Intercoms

The Intercoms is the abbreviation for the international commercial terms. There are fifteen terms of business terminologies accepted between the seller and the purchaser. Intercoms are trade terms described by the International Chamber of Commerce(ICC) which are globally accepted in the international and domestic business operations.

The intercoms menu can be accessed from the configuration tab of the module and the user can view all the intercoms described in the platform which are enlisted. The user can create a new one using the create option available.

odoo-accounting

On selecting to create a new one the user can do it in the same menu itself. The created intercoms should be acceptable for all the businesses operations of the company.

Payment terms

The payment terms are the ways in which the customers and the company are supposed to make the payments of the products and services. The Odoo platform allows the user to describe the various payment terminologies of the company operations. The payment terms can be described in the payment term menu accessible form the configuration menu of the module.

odoo-accounting

Under the payment terms creation window the user can provide a name for it, assign the company where this payment terminology should be used and describe details that should be mentioned on the invoice can be provided. Under the terms menu the user can define the terminologies of the respective payment terms operation.

odoo-accounting

If the user wants to add payment terms he/she can choose the add a line option available and will be depicted with the following window as shown below. Here the terms type can be mentioned and the due date of the operation can be described. The terms type can be assigned as balanced, percentage or fixed amount. Additionally, the due date computation can be made based on the days after the invoice date, last day of the following month or the last day of the current month.

odoo-accounting
Payment follow ups

It's essential for any company operations when there is a due payment and the customer has not yet been paid. The Odoo platform allows the users to create and configure various follow up operations for the payments under the payment follow up menu accessible from the configuration tab of the module. In the payment follow ups menu all the follow up operations are defined and the user can create a new one using the create window available.

odoo-accounting

Under the follow up description menu the user can select the name for the follow ups action and the due date of the action. The various actions of the follow up provider can be configured. The follow ups actions such as emails, SMS, letter or a manual action can be triggered by enabling it under the accounting tab. Under the options tab the auto execute and the join open invoices can also be provided.

Under the message tab the user can customize it by editing the description and suiting it as per the company demands.

odoo-accounting
Fiscal year

The fiscal year is a distinctive operational period allocation of the company operations which will allow the users with the book keeping aspects of the company along within the budget summaries and the tax filings. The fiscal year is usually configured with the financial year described by the governmental organizations as it will help the users to describe and file the tax returns of the company.

The fiscal year option can be provided in the settings menu of the accounting module accessible from the configuration tab. Under the fiscal periods menu the user can enable the fiscal year option, describe the fiscal year and the invoice switching threshold.

odoo-accounting

All the fiscal years can be viewed in the fiscal year menu accessible from the settings menu itself under the fiscal periods menu. In the menu all the fiscal years are defined and the user can create a new one using the create option available. In the fiscal year creation window the user can assign a name, duration of operations including the start date and the end date of the fiscal year and the company allocation for the same.

odoo-accounting
Budgetary positions

The budgetary positions allow the user to create spending plans for the specified chart of accounts. This will help the users in the aspect of budget allocations in the company. The budgetary positions can only be assigned if the budget management option of the accounting module is enabled. Under the analytics menu of the settings module the user should enable the budget management options and save it. Therefore, under the configuration tab the user can view the new option budgetary position.

odoo-accounting

On selecting the budgetary position option the user will be depicted with the menu containing the budgetary listing and the user can create new ones by selecting the create option available. In the budgetary creations window the user can provide a name and allocate the company of operations.

odoo-accounting

Under the accounts may the user can allocate the various charts of accounts to deal with the budgetary operations by selecting the add a line option available. On selecting the add a line option the user will be depicted with the following window to choose the respective chart of accounts for the budgetary position.

odoo-accounting

Deferred revenue management

Deferred revenue is the advance payment which has been recorded under the liability account of the beneficiary until an internal task is triggered on the product conveyance. In layman's terms it can be defined as the advance payment received by the company but it’s not regarded as revenue thus making it unable to be reported as the company income. The deferred revenues menu can be accessed from the configuration tab on selecting the deferent revenue model the user will be depicted with the menu with the list of all deferred revenues. The user can create a new deferred revenue model using the create window available.

In the deferred revenue creations window the user should add a name for it. Under the depreciation method menu, the user can allocate the depreciation number of recognition and the years of it. The prorata temporis can be enabled to make the first depreciation entry of the asset to be done as per the purchase date rather than the fiscal year operations defined in the platform.

In the accountancy menu the user can allocate the company, revenue account, deferred revenue account, journal, analytical accounting and the analytical tag.

odoo-accounting

As the deferred revenue models are being defined the user can now create and allocate different revenues to the module. Under the accounting tab the user can view the different revenue menu ico. On the selecting menu the user can view all the deferred revenues described and the user can select the create option available.

In the creation menu provide the deferred revenue name. Under the asset value provides the original value and the acquisition date of the revenue. Furthermore, under the depreciation method the user can select the number of recognitions in the duration, enable the prorata temporis and describe the first reception date. Under the current values the residual amount to recognize and the different revenue amount are being described. Moreover, under the accounting menu the company allocated can be defined, revenue account and the deferred revenue account can be described along with the journal details, analytical account and the analytical tag can be defined.

odoo-accounting

Once the deferred revenue details are being provided and verified they can save it and confirm the operation. Once the operation is confirmed it starts to run on the platform. The user can view the revenue board under the respective deferred revenue description

odoo-accounting

On selecting verifying list, the user can select the post entries options available which will post the respective revenues in the journal. On selecting to post the user will be depicted with the posting details in a menu and the user can verify them.

odoo-accounting

After the revenue has been confirmed and posted the user can modify it if needed by selecting the modify option now available.

odoo-accounting

On selecting to modify the revenue the user will be depicted with the following menu. Here the reason for modifications can be provided and the new values of the deferral revenue can be configured. The number of depreciations, depreciable amount and the non-depreciable amount can be described.

odoo-accounting

Asset management

The asset management of the accounting aspects of a company are the financial operations of the sales, purchase, inventory operations, repairs and many more which are involved with the business concerning the financial operations. All the financial operations on these aspects can be planned, executed and monitored. In addition the physical assets such as land, vehicle, equipment etc. can be configured and subjected to a strict financial operations concerning the funds spent on them.

The asset model menu can be accessed from the configuration tab of the accounting module. In the menu all the asset models described will be listed out and the user can create a new one.

In the new asset creation window the user can assign an asset model, allocate the depreciation method to be a straight line, digressive or accelerated degradation. Additionally, allocate the duration and the prorata temporis. Under the accounting menu the user can describe the accounting aspect of the asset such as fixed asset account, depreciation account, expense account, journal, analytical account and analytical tab.

odoo-accounting

As the asset models are created the user can now create the various assets to be described in the company operations in the Odoo platform. To allocate an asset to the company the user can select the asset menu accessible from the accounting tab. Here all the assets of the model are being described and the user can select to get a new one.

In the asset creation window the user should initially provide a name, allocate the asset value of the acquisition price and the date of it. Additionally, the current values can be described by the asset.

Furthermore, the depreciation method can be allocated and the duration of the depreciation and the start date of the depreciation can also be allocated. Moreover, the accounting aspects of the asset can be described under the menu such as depreciation account, expense account, journal of entry, analytical account and the analytical tab can be described.

odoo-accounting

As the asset is being described and this is saved upon verification the user can view the option to confirm the asset to be described in the platform.

odoo-accounting

On confirming the asset the user can view the options sell or dispose, set as draft, pause depreciation, modify depreciation, and save the model.

odoo-accounting

The depreciation board will be depicted down the depreciation board. Here all the reference of the asset and the details will be described.

odoo-accounting

Analytical accounting

The analytical accounting aspect of the Odoo platform can be used to determine the financial aspects of invoicing, sales, purchase and the various financial aspects involved to determine where the funds of the company are being spent and are retained. The Odoo platform allows the users to care for the analytical accounts and tags which do not interfere with the chart of accounts of the company.

The Odoo analytical accounting can be used for the various financial operations such as analysing the cost of the company, reinvoicing the products and services to the customers. Additionally these can be used to determine the financial aspects of the projects and therefore determining the performance and the productivity.

The analytical accounting aspects can be enabled to be operational in the Odoo platform by enabling the analytical accounting option under the settings menu of the accounting tab. In addition, the analytical tags can be enabled for the operation in the platform.

odoo-accounting

The analytical accounts of the platform are defined in the analytical accounts menu which can be accessed from the configuration tab of the module. Here all the analytical accounts are listed out and the user can edit them and create new ones.

odoo-accounting

The analytical accounts for the platform can be created by selecting the create option available. The user can provide a name for the analytical account, reference number, customer details, allocate a group and the budget lines can be defined under the budget items.

odoo-accounting
Analytical account groups

The user can create and assign groups of analytical accounts for the analytical account option to be conducted in Odoo. These analytical account groups can be defined from the analytical group menu accessible from the configuration tab. In the menu all the analytical groups are listed out and the user can select to create a new one using the creation window. In the groups creation window the user can define the name, parent group, provide the company and have a custom made description for the group being defined.

odoo-accounting
Analytical tags

The analytical tags of the Odoo platform can be described for classification of the analytical accounts available. The analytical tags of the can be defined under the analytical tag menu accessible from the configuration tab of the module.

Here all the analytical tags will be listed out and the user can create new ones using the creation window accessible. In the new analytical tag creation window the user can provide the name of the tag, enable the analytical distribution, allocate the company and describe the analytical accounts coming under the respective tag by selecting the add a line option.

odoo-accounting

Let’s create an invoice to demonstrate the analytical account operation. The new invoices can be created from the customer tab and selecting the invoices. Where the user will be depicted with all the invoices generated from the platform and can create new ones.

Create an invoice and confirm the operation on providing and verifying the details.

odoo-accounting

If the payment is validated, then the process is indicated with a label.

odoo-accounting

Now back in the analytical items menu accessible from the configuration menu of the module the user will be depicted with all the accounting aspects of the company.

odoo-accounting

The user can filter out the accounts based on the date of operations and add an additional filter of analytical accounts.

odoo-accounting

On selecting an respective entry the user can view all the details of the same analytical account operation and the invoice details allocated with the respective account.

odoo-accounting
Analytical reports

As reporting is one of the major aspects of the Odoo platform the user can also generate the various analytical reports on the operations.

odoo-accounting

The Odoo provides the use with various default as well as customizable filtering as well as grouping option to sort out the required data.

The filtering can be done based on the dates by selecting the option where there are default as well as customizable options available.

odoo-accounting

To view the balance of the group under the hierarchy and subtotals the user can select the option under the options. In addition, the user can select the unfold option to view the analytical accounts unfolded.

odoo-accounting

The user can export the analytical reports to an external source using the export option which can be done on XLSX file. In addition, the user can select the print preview option to view the preview of the report which we generated if subjected to be printed

odoo-accounting
Profit and loss report of analytical account

To obtain the profits and loss report of the analytical accounts the user can select the profit and loss report accessible from the reporting tab.

Here the profit and loss aspects of the platform and the company operations are described.

odoo-accounting

The user can filter out the analytical account aspects of the company operations using the smart filtering option available in the profit and loss reporting menu. The required analytical accounts should be added and the user can also add the tags of operation.

odoo-accounting

As the filtering operations are completed the user can view all the analytical accounts and their profit and loss statements.

Budget management

Budget management is the stepping stone to success for any business. Odoo has developed an accounting module aiming to equip a business for efficient budget management. The persons using Odoo Accounts can efficiently track and monitor the financial status of the business along with the plans. Odoo makes use of the general and analytic accounting for ensuring efficient budget management.

For making use of Odoo budget planning, a user has to configure three of the following features.

Budgetary Positions

Analytic Accounts

Budget

Budgetary positions can be explained as a kind of mapping of the general accounts with budgets. For creating a budgetary position, a user has to go to

Accounting>Configuration>Accounting >Budgetary Position

odoo-accounting odoo-accounting

Here, the user can define all accounts linked to the budget.

odoo-accounting

Then Click on Select button

odoo-accounting

The user has to Save the changes to confirm the Budgetary position of the company.

odoo-accounting

The user can follow the same steps to make a revenue budgetary position. The only difference is that for revenue budgetary position one has to select relevant income accounts.

Analytical Account

The application has to be updated about the expenses or costs which are applicable to a predefined budget. In order to do so the user will have to link the invoices and costs to a defined analytical account. A user can create the analytical account by entering the Accounting module. Then go to

Accounting>Configurations> Analytic Accounting >Analytic Accounts.

odoo-accounting

In the next step you can set the budget

First set budget targets. For this, go to the accounting app, select Accounting ->Management->Budgets and create a new Budget.

odoo-accounting

Now, create budget by clicking CREATE button

odoo-accounting

Note:- Here, in the Budget line, the field Analytical account is set as not mandatory by Odoo. But in order to ensure the proper working of Budget 'Analytic account' is mandatory. So, you have to put the Analytical account in the Budget lines. The user can either create a new analytic account or select an existing analytical account from the budget lines. The user will have to confirm the budget.

odoo-accounting

Customer Invoice to Payments

Depending the business and the applications used by the user you can take different approaches to automate customer invoice creation in Odoo. Usually, draft invoices are made by the framework (with data originating from different reports like sales order or contracts). In these cases, accountants will only have to approve/validate the draft invoices and send the solicitations in batch (by customary mail or email).

A user can create a customer invoice directly from the dashboard by clicking on NEW INVOICE button. The user can also go to the CUSTOMERS section in the accounting tab and select INVOICE option

odoo-accounting

The user can click on the NEW INVOICE button first. Then the user will be navigated to a new window with a creation form like below.

odoo-accounting

The field comprises of the following attributes:

Customer: The contact of the customer by name, TIN, Email or Internal Reference.

Delivery Address: Delivery Address for the Current Invoice

Payment Due Date or Terms: If the user is using payment terms, then the due date will be automatically computed at the generation of accounting entries. On keeping the payment terms and the due date empty the payment can be made directly. The payment terms will enable the computation of several due dates, for example 50%now,50%in one month.

odoo-accounting

The user can also set the Payment terms via defining a date.

odoo-accounting

Invoice date: The user can keep it empty if you want to use the current date.

Sales Person: Assign the sales person authorized for deal.

Journal: Here you can define the Journal authorized for the deal.

Company: Company relevant to this Journal.

Currency: Currency used for the transaction.

Under Invoice Lines Tab, a user can add the products the customer desires to buy. The user can also add a description if any under the label section and the account you configured for the deal.

After entering all the details,

odoo-accounting

Now, the user can register payment send create payment.

odoo-accounting

After completing this, click VALIDATES. Now you can see that the invoice has been paid for.

odoo-accounting

Near the paid on date, you can find a small green icon. Now click on this icon and then you will get acquainted with more information about the payment. The user can see that the payment invoice has been reconciled together. If the user wants to unreconcile, they can do it by clicking UNRECONCILE.

odoo-accounting

In case, the invoice payment is partial, you get the payment information citing the amount due.

odoo-accounting odoo-accounting

Now, click the PREVIEW button on top to get the website view of the invoice.

odoo-accounting

In the next step, go to Accounting> Journals> Sales. Here, you can see the journal entry that was automatically created for the invoice.

odoo-accounting

Then, click on it to get journal entry with debit and credit balanced.

odoo-accounting

Now, go to Customers> Payments

Here, the user can see the Invoice Payment details including date, invoice name, journal, payment method, customer, amount, status and the company.

odoo-accounting

It is from here that you can access the corresponding journal items and also the invoices.

On clicking the journal item, a user can find the details of the client payment. The debited about and the credited amount can be viewed. Amount receivable can also be viewed from here.

odoo-accounting

The balance between the CREDIT and DEBIT is also there.

Reporting

Aged Receivable Balance

To get a rundown of invoices, a user will have to go for Aged Receivable report, under the reporting menu.

Configuration

Reporting > Partner Reports > Aged receivable.

odoo-accounting

You can print this straightforwardly to Excel or PDF anytime to get a precise idea of what you see on the screen.

To view all Journal Entries,

Configuration

Got to Accounting-> Accounting->Journal Entries

You can create the journal entries manually here.

AS seen above the filters by default would be MISSCELENEOUS OPERATIONS.

Now create a new journal entry by clicking the button CREATE.

Vendor bills to payment in Odoo

A user can pay vendors the correct amount at the right time (not too late, not very early; contingent upon the vendor policy) if the vendor bills are registered or enlisted in Odoo. The process becomes effortless with Odoo. Odoo also helps to generate reports to follow your aged payable balances.

If a user wants to control vendor bills received from the vendors, the user can make use of the Odoo Purchase application. This enables the user to control and pre-complete based on past buying/purchase orders.

Configuration

This feature can be configured in two different ways. First method is to click the option New Bill from Accounting Dashboard under Vendor Bill section. The second option is to go to Accounting>Vendors>Bills.

The user will be navigated to a new window as given below upon clicking the CREATE button

Here, the user can easily register the new vendor bill by choosing the vendor and contributing their invoice as the Vendor Reference. The user can also add and confirm the product lines. Here, one has to be careful to ensure correct product quantities, taxes/expenses and prices.

To view all Journal Entries,

Configuration

Got to Accounting-> Accounting->Journal Entries

Here, the user can create the journal entries manually.

odoo-accounting

Here, as you could see, the filter would be MISSCELENEOUS OPERATIONS.

Here, you can create a new journal entry by clicking CREATE button

odoo-accounting odoo-accounting
Vendor bills to payment in Odoo

A user can make payment to vendors easily with Odoo. The correct amount can be paid at the right time (not too late, not very early; based on the vendor policy). This is possible if the vendor bills are registered or enlisted in Odoo. Odoo can help the user to generate reports to follow your aged payable balances.

The user can make use of the Odoo Purchase application if the user wants to control vendor bills received from the vendors. This helps the user to effortlessly control and pre-complete the process based on past buying/purchase orders.

Configuration

The user can configure this feature in two different ways.

1. Click the option New Bill from Accounting Dashboard under Vendor Bill section

2. Go to Accounting>Vendors>Bills

odoo-accounting

The user will be redirected upon clicking the CREATE button

odoo-accounting

The user can easily register the new vendor bill here by choosing the vendor. This can also be done by contributing their invoice as the Vendor Reference. The user is also able to add and confirm the product lines. A user has to be alert to entre correct product quantities, taxes/expenses and prices.

odoo-accounting

A user can also configure an account to which the product is linked. This can be done by clicking the Account section,

odoo-accounting odoo-accounting odoo-accounting

On clicking Register payment you will get a new window. Here, you can CREATE PAYMENT.

odoo-accounting

Now Click CREATE Payment. Then the status will change to in payment.

odoo-accounting

A journal entry will automatically be crafted depending on the invoice. The user can see the journal entry in a few steps. Go to Accounting> Journals>Purchase.

odoo-accounting

The journal entry may vary depending up on the accounting package you choose to use.

In short, for most of the European nations, the journal entry will utilize the accompanying records:

Accounts Payable: Mentioned on vendor form

Taxes: As mentioned on the items and per line

Expenses: Characterized on line item utilized

Instead, for Anglo-Saxon (US) bookkeeping, the journal entry will utilize the accompanying records:

Accounts Payable: Characterized on the vendor form

Taxes: Characterized on the items and per line

Merchandise Received: Characterized on product form.

A user can examine the Profit & Loss or the Balance Sheet reports. This can be done after validating few vendor bills.

odoo-accounting
Aged payable balance

That means, in order to get a rundown of open vendor bills and their related due dates, the user can go to Aged Payable report, under reporting menu.

Configuration

Reporting > Partner Reports > Aged payable.

odoo-accounting

The user can access the details of outstanding bills and dues by directly clicking open the merchants. The user can also comment on any line to alert the management about it.

The user can also make use of Odoo to print the report in Excel or PDF formats.

odoo-accounting
Cash Rounding Methods

Cash Rounding is made possible when the base unit of an account is smaller than the most reduced denomination category of the currency.

Cash rounding is an important feature for any type of business. IT is this feature that enables the vendor to round off the cost of any request when instalment is made. Odoo supports cash rounging. Odoo also helps the user to round the total amount of a bill to the nearest 5 cents. A vendor using Odoo will be able to create a bill with a rounded total amount.

You can enable this quickly. Go to Accounting module > Configuration > Settings > Taxes > Rounding Method

odoo-accounting

Round per Line: Rounding per line can be used if your prices are tax-included. Round per line helps to calculate the sum of line subtotals as equal to the total with taxes.

Round Globally: The user can directly select this or go to Accounting module -> Configuration -> Management -> Cash Rounding.

odoo-accounting

Click create button to create a new cash rounding method in Odoo.

The user can find the following parameters in the form:

Name: Name of rounding

Rounding Precision: We can define the precision of a numeric value as the number of digits that are used to express that value. The digits on the left and right of any decimal point are considered here. The rounding precision will also affect the rounding of the computed value.

Rounding Strategy: The user can do cash rounding with the help of two strategies.

odoo-accounting odoo-accounting

1. Modify tax amount: Add the rounding to the tax. Select the highest tax amount.

2. Add a rounding line: Add the rounding in a new line.

Account: It is the account where the rounding will go.

Rounding Method: Odoo offers three types of rounding methods.

odoo-accounting

1. UP: Here, Value rounds towards plus infinity based on the rounding precision.

2. DOWN: Value rounds towards minus infinity based on the rounding precision on choosing down.

3. HALF-UP: If the fraction part of a value is greater than or equal to 0.5, then round half towards plus infinity. If the fraction part is less than 0.5 then round half towards minus infinity.

Bank Statement and Reconciliation

It is the process of matching a person’s accounting records with respect to cash account with the information available in his bank statement. This process aims to find out the difference between these two records. This will help to keep the accounting records as appropriate as possible. The bank information encompasses all transactions records for a month. In short, we can say that the reconciliation process should be carried out at regular intervals to ensure that a company’s cash record are correct and immune to fraudulent activities. It also helps in the mitigation of problems with respect to bounced checks and overdraft fees.

Odoo 14 helps the user for easy linking of your invoices and all other payment details with the bank statements. The reconciliation methods in Odoo can be carried out in two formats as given below:

Direct registering of payment with invoices.

Open invoices reconciled with bank statements.

Step 1: Make Bank Payment

First, create an Invoice for the customer.

You can do this by going to Accounting->Customers->Invoices

Create an Invoice.
odoo-accounting

Whenever the customer makes the payment, click REGISTER PAYMENT.

Usually, a company accountant handles the bank statements only during weekends. It is at this time that the invoices are marked as paid. It is done so as to remember that the service with our customer can be started. Payment confirmation is send from the customer side, so payment registration can be done and the invoice can be marked as paid. Click REGISTER PAYMENT option. Then the user will get a new window to Create Payment. Fill in necessary details and click CREATE PAYMENT. Then the invoice status will be changed to in payment.

odoo-accounting odoo-accounting

The user can find the payment details from the invoice. Here the user can find a green little icon. Click on the icon and you will get the payment information. Here, the user can find that the reconciliation process has been completed automatically.

odoo-accounting
Bank statement reconciliation case

Here the user can import or create bank statements. The documents have to be referred from the banks feed section.

odoo-accounting

You can get reconciliation statement from here.

odoo-accounting odoo-accounting odoo-accounting

Odoo will help to automatically execute the reconciliation process if the name of the partner and the amount entered are correct

odoo-accounting

On completion of the reconciliation the user will get a plain window as given above.

In case the some inconsistencies occurred during the process, like the partner name is missing out, amount getting mismatched. Then you have to make use of manual actions.

Suppose if the partner name is not there in the bank statement, then you have to manually enter the details.

Reconciliation models

One can pre-fill in Odoo certain accounting entries so as to easily reconcile them. Seamlessly reconcile recurrent entries such as bank fees.

Creating Reconciliation Models

Go to Accounting>Configuration>Accounting>Reconciliation Models.

The user can also go to the Bank journal under accounting application dashboard and click on More ‣ Reconciliation Models.

odoo-accounting

Click RECONCILIATION MODELS.

odoo-accounting

Click the CREATE button to create a new model.

odoo-accounting

Let us discuss a case. Suppose, a company receives a bank fee cost based on its current balance every month. Here, the fee is variable.

We can keep the model name as Bank fees. Then select the correct account to book those fees. You can also specify the amount type. Odoo can take the fee into the account based on the given parameters.

odoo-accounting

You can mark changes by clicking Save button

Registering payments based on reconciliation model

A user can select open balance during reconciliation. First click on the reconciliation model, here it is the bank fees. Then the user will instantly get the relevant data. To finish the process, click on reconcile.

odoo-accounting
Multi-currencies in Odoo

Multi-currency in Odoo will enable the end users to send sales invoices, quotes and purchase orders. This also helps to receive bills and instalments in monetary standards. The multi-currency will help you to up financial balances in different currency forms and run reports on foreign currency exercises.

Configuration

Go to Accounting->Configuration->Setting->Currencies->Multi-currencies

odoo-accounting

The user can turn on the option Multi-currencies here. Then Click SAVE button to mark the changes.

To add more currencies, the user can Activate Other Currencies option. Here, the user can click on the new currencies and activate them if required.

odoo-accounting

Exchange gain or loss journal

This option helps to record the difference between the payment registration and the expected amount. We can take an example. Suppose, the instalment is paid one month after the receipt was issued, the chances are high that the conversion/exchange scale would have changed considerably. The fluctuation infers some misfortune or benefits. Such events are recorded by Odoo.

Odoo provides us with different options like Miscellaneous Operation, Exchange Difference, Cash Basis Tax Journal, Stock Journal. A user is also able to CREATE AND EDIT new one.

Automatic Currency Rates in Odoo

By default, the currencies have to be changed manually in an ERP solution. However, using Odoo, a user can synchronize currencies with different exchange service like Yahoo, Europe Central Bank and more to get automatic currency rates.

A user can also set the interval for conversion. The interval can be set as Manually, Daily, Weekly or Monthly.

Click SAVE to mark the changes.

Calicut

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

London

Cybrosys Limited
Alpha House,
100 Borough High Street, London,
SE1 1LB, United Kingdom

Kochi

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

Bangalore

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

Send Us A Message