Odoo 18 Enterprise Book: Accounting

11. Journals

In Odoo 18 Accounting, accurately recording every financial transaction is vital for maintaining transparency, ensuring compliance, and generating reliable reports. This is done through the use of accounting journals, which are structured logs of transactions categorized and recorded by date. These journals serve as the foundational elements of the double-entry accounting system and help businesses monitor cash flow, revenue, expenses, and other financial activities. In Odoo 18, you can create and configure various types of journals including Sales Journal, Purchase Journal, Bank Journal, Cash Journal, and Miscellaneous Journal, each catering to specific types of business transactions such as customer invoices, vendor bills, bank reconciliations, and ad hoc entries.

To access and manage journals in Odoo 18, navigate to the Configuration menu within the Accounting module and select the Journals option.

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This section presents a comprehensive overview of all the journals that have been configured in the system.

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The list view includes key details such as Journal Name, Type (Sales, Purchase, etc.), Short Code, and the Default Account associated with each journal. To create a new journal, click the New button.

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This opens a configuration form where you begin by entering a Journal Name; for example, “Online Sales” or “Local Purchases.” The Company field will automatically populate with your current company, ensuring that the journal is correctly assigned within a multi-company environment if applicable. The next critical step is to define the Journal Type, which determines the behavior and purpose of the journal. In Odoo 18, the available journal types are:

  • Sales Journal: Used to record customer invoices and revenue.
  • Purchase Journal: Used for entering vendor bills and tracking company expenses.
  • Cash Journal: Designed for managing cash transactions such as petty cash expenses or cash payments.
  • Bank Journal: Used for bank-related entries including deposits, withdrawals, and bank statement reconciliations.
  • Credit Card Journal: Used to manage and record transactions made via company credit cards, helping businesses maintain better oversight of credit-based expenditures.
  • Miscellaneous Journal: Reserved for entries that don’t fit into the above categories, such as adjustments, depreciation, or opening balances.

The journal type you choose influences the subsequent configuration options.

11.1 Sales

In Odoo 18 Accounting, configuring a Sales Journal allows you to accurately record entries for customer invoices. When creating a journal, selecting the Sales journal type opens up specific fields under both the Journal Entries and Advanced Settings tabs, enabling precise control and customization.

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Within the Journal Entries tab, you can assign a Default Income Account which will be used for transactions recorded in this journal. If you prefer to maintain separate sequences for invoices and credit notes, you can enable the Dedicated Credit Note Sequence option. This ensures that credit notes issued under this journal follow a unique numbering pattern, making tracking easier. Similarly, if you prefer to maintain separate sequences for invoices and debit notes, you can enable the Dedicated Debit Note Sequence option. The shorter name used to display can be specified in the Short Code field.

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Moving to the Advanced Settings tab, you have the option to restrict journal usage by specifying Allowed Accounts. If this field is left blank, all accounts will be accessible. Enabling Secure Posted Entries with Hash ensures that once a journal entry is posted, it receives a secure hash and becomes immutable, promoting data integrity and compliance with auditing standards.

In the Communication Type section, you can define how the reference communication appears on the customer’s invoice. This helps customers identify which invoice they’re paying for. Options include Based on Invoice, or Based on Customer. Furthermore, under Communication Standard, you can select reference models, with Odoo’s internal reference being the default. If you wish to automate invoice creation via emails, you can specify the Email Servers for integration.

11.2 Purchase

In Odoo 18 Accounting, you can create a Purchase Journal to efficiently manage and track entries related to vendor bills and company expenses. To do this, select Purchase as the Journal Type when configuring a new journal. Much like the Sales Journal, the Journal Entries and Advanced Settings tabs become available for customization, although the default configurations are tailored for purchase-related transactions.

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Within the Journal Entries tab, the key field to configure is the Default Expense Account. This account will automatically be used for expense entries recorded through this journal, ensuring that costs are accurately categorized and consistently documented in your financial records.

You can also assign a Short Code to easily identify this journal in accounting operations. Additionally, you may set a specific Currency for the journal, which is especially useful if you handle purchases in multiple currencies.

In the Advanced Settings tab, you have the option to restrict access by listing the Allowed Accounts. If you leave this field blank, the journal will allow posting to all accounts. Enabling the Secure Posted Entries with Hash option helps maintain the integrity of posted records by making them immutable once finalized, which is crucial for compliance and auditing purposes.

These settings ensure that the Purchase Journal in Odoo 18 is equipped to handle vendor bill processing efficiently while maintaining accuracy, control, and compliance in your accounting system.

11.3 Cash

In Odoo 18 Accounting, the Cash Journal is designed to handle accounting entries related to manual cash transactions, such as petty cash expenses or cash collections. When configuring a Cash Journal, you will find several dedicated tabs that allow for detailed customization of journal behavior.

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Under the Journal Entries tab, you can assign a specific Cash Account that will be used to track all cash-related transactions. Additionally, a Suspense Account can be configured. This account temporarily holds amounts from cash transactions or bank statements until proper reconciliation is completed. If there's a discrepancy between the expected and actual cash register balances, the system will automatically post the difference to the Profit Account or Loss Account, as appropriate. To maintain a clear audit trail, you can enable the Dedicated Payment Sequence feature, which ensures that payments and cash transactions recorded through this journal follow a distinct numbering sequence.

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The Incoming Payments tab allows you to define the names and methods for receiving cash payments, while the Outgoing Payments tab lets you specify the methods used for recording outgoing cash flows.

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These customizable options help streamline the management of both incoming and outgoing cash transactions. Finally, the Advanced Settings tab provides an option to restrict access by specifying Allowed Accounts. If no accounts are defined here, the system will permit entries to all accounts.

11.4 Bank

In Odoo 18 Accounting, the Bank Journal is utilized for managing and recording all bank-related transactions, such as deposits, withdrawals, and statement reconciliations. To configure this journal, you should select Bank as the Journal Type during creation.

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You will be prompted to input details such as the Account Number and the linked Bank Account. These fields ensure that your bank transactions are accurately associated with the correct financial accounts. In the Bank Feeds section, you can decide how bank statements are to be handled. Odoo offers flexible options such as manual import of bank statements or automated synchronization with your bank via supported integrations. If you're not ready to define this setting during setup, you can select Undefined Yet as a placeholder.

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Odoo 18 also provides dedicated tabs for configuring both Incoming Payments and Outgoing Payments, allowing you to specify the payment methods used for each. Based on the methods you select, such as SEPA, check, or manual, you will be presented with additional configuration options relevant to that method, ensuring seamless processing of bank payments and receipts.

11. 5 Credit Card

In Odoo 18 Accounting, a new Credit Card journal type has been introduced to manage business-related credit card transactions efficiently. When setting up a Credit Card journal, you can designate it as the Journal Type: Credit Card, which will tailor the journal's configuration fields accordingly.

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One of the notable additions in this setup is the Credit Card Setup section, where you decide how transaction feeds are managed. Under the Transaction Feeds field, you can choose from various options: Undefined Yet, Manual (or import), which supports multiple file formats like CAMT, CODA, CSV, JPEG, OFX, PDF, PNG, QIF, XLS, and XLSX, or Online Synchronization for automatic fetching of credit card transactions from your financial institution.

11.6 Miscellaneous

In Odoo 18 Accounting, the Miscellaneous Journal is designed to accommodate all accounting entries that do not fit neatly into predefined categories such as sales, purchases, bank, cash, or credit card transactions. This journal is typically used for adjustments, opening balances, depreciation entries, and other ad hoc financial operations.

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When configuring a Miscellaneous Journal, you can specify the necessary accounting and advanced settings just like in other journal types. Once the journal is created and saved, Odoo will automatically store it in the system. You can view all the entries recorded in this journal by clicking the Journal Entries smart button, which provides a comprehensive list of all the transactions associated with it. This ensures transparency and facilitates accurate financial reporting for non-standard accounting activities.

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