Odoo 18 Enterprise Book: Accounting

47. Settings

Odoo 18 offers several enhancements in the Accounting module's settings, offering businesses more flexibility and control over their financial processes. Here are some notable features:

47.1 Taxes in Company Currency

Odoo 18 introduces a new feature in the Accounting module that allows users to configure and display tax amounts in their company’s base currency, regardless of the currency used in the transaction. This feature is especially useful for businesses that operate internationally or deal with multiple currencies, as it helps maintain accurate tax calculations and simplifies financial reporting.

Odoo 18

To activate this functionality, users need to navigate to the Accounting module and open the Settings menu under the Configuration tab. In the Customer Invoices section, there is an option labeled Taxes in Company Currency. Once this option is enabled and the changes are saved, Odoo will begin displaying all tax amounts in the company's local currency on invoices, even when the invoice is created using a different currency.

For example, if an invoice is issued in a foreign currency, Odoo will automatically calculate the equivalent amount in the company’s currency and display the tax values accordingly.

Odoo 18

After confirming the invoice, users can click the Print button to generate the invoice document.

Odoo 18

The tax amount will then be visible in the company’s currency, such as USD, under the Taxes USD section. This feature brings added transparency and consistency to multi-currency transactions, supporting more reliable tax documentation and financial oversight.

47.2 Authorized Signatory on Invoice

In Odoo 18, adding an authorized signatory to invoices is a valuable feature that enhances the authenticity and legal validity of financial documents. This setup can be easily managed through the Accounting module. To begin, navigate to the Configuration Settings and locate the Customer Invoices section. Here, you’ll find the option to enable the authorized signatory feature.

Odoo 18

Once this feature is activated, a dedicated field labeled Legal Signatory becomes available. You can use this field to assign an authorized individual as the official signatory for your invoices. After selecting the appropriate user, their name and associated digital signature (if configured) will appear on all outgoing invoices.

Odoo 18

This feature not only helps reinforce the professional appearance of invoices but also supports compliance with business and legal standards, especially in organizations where approval hierarchies are crucial.

47.3 QR Codes

QR codes in an e-invoicing system provide a quick and efficient way to access invoice details, eliminating the need for external references. Odoo simplifies this process by introducing the ability to include payment QR codes on invoices. This feature, available in the Odoo 18 Accounting module, enables businesses to offer clients a seamless payment experience by incorporating a QR code directly on the invoice.

Odoo 18

To set up payment QR codes in Odoo 18, begin by navigating to the Configuration menu and selecting Settings within the Accounting module. From there, activate the QR Codes feature under the Customer Payments tab, and be sure to save your changes. Once this is done, you can choose the type of QR code you wish to generate for payment in the Other Info section of the invoice.

Odoo 18

In this section, you will find the Payment QR-Code field, where you can specify the kind of QR code to use. After entering all the necessary details, confirm the invoice by hitting the Confirm button. Clicking the Preview button will open a preview that includes the payment QR code, allowing your clients to easily scan and make payments directly from the invoice, streamlining the payment process for both businesses and customers.

47.4 Auto-Validate Bills

The Auto-validate Bills feature in Odoo simplifies the billing process by automatically validating vendor bills after they have been imported, as long as no changes are made to the bill. Once you've imported three bills for a specific vendor without any modifications, Odoo will suggest enabling the automatic validation for future bills from that vendor.

Odoo 18

This feature can be toggled on or off at any time in the vendor’s profile, allowing businesses to maintain control over their billing process while also benefiting from the convenience of automated bill validation.

Odoo 18

This streamlines workflows, reduces manual oversight, and ensures that bills are processed efficiently without unnecessary delays.

47.5 Invoicing Switch Threshold

The Invoicing Switch Threshold in Odoo 18 is an important feature within the Accounting module that allows businesses to set a specific date to control the inclusion of invoices in accounting entries.

Odoo 18

Once this threshold date is defined, any invoices created before it will not be considered for accounting entries, providing greater flexibility in managing and organizing financial data. This option is particularly useful for businesses that want to streamline their accounting processes and ensure that only invoices from a certain date forward are included in the financial records.

47.6 Dynamic Reports

In Odoo 18 Accounting, the Dynamic Reports feature allows users to easily navigate through reports and gain a deeper understanding of the data behind the numbers.

Odoo 18

Once this option is enabled under the Fiscal Period section in the Settings, users can quickly access the underlying journal entries by selecting the values within the reports.

Odoo 18

This functionality simplifies the process of drilling down into the details, helping users to view and verify the exact journal entries associated with any figure shown in the report.

Odoo 18

By clicking on a value in the report, users are directly linked to the corresponding journal entries, making it more efficient to trace the source of the data and ensuring greater transparency in financial reporting.

47.7 Add Totals Below Sections

In Odoo 18 Accounting, the Add Totals Below Sections option allows users to display totals and subtotals at the bottom of each section within financial reports. When this option is enabled, it provides a clearer breakdown of the figures by adding summations of the values for each section, improving the readability and comprehensibility of the reports.

Odoo 18

This feature is especially useful for users who need to quickly assess the overall totals for specific categories, helping them to better analyze the financial data and make informed decisions.

Odoo 18

By ticking this option, users can ensure that important financial summaries are readily accessible at the end of each report section.

47.8 Accounting Firms Mode

The Odoo 18 offers the Accounting Firm Mode, which is designed to streamline and enhance the invoice and bill encoding process.

Odoo 18

It is available in the Settings menu of the Odoo Accounting module. This feature is beneficial for users who need to modify invoice or bill details more efficiently. When activated, Accounting Firm Mode provides several key enhancements. First, users can modify the sequence number of invoices and bills, allowing for better tracking and organization of documents. Additionally, the default date for vendor bills or customer invoices is automatically recommended, which eliminates the need for manual date entry and speeds up the process. The feature also includes a new field called Total (tax inclusive), which helps automate the creation of lines with the correct account and tax, ensuring more accurate encoding.

Odoo 18

In practical terms, this mode enables users to specify a personalized invoice sequence number during invoice creation, and Odoo will automatically append the bill date and accounting date.

Odoo 18

While these dates are suggested, users still have the option to modify them if necessary. Furthermore, the Accounting Firm Mode allows users to enter the total price, including tax, before adding products to the invoice line, with Odoo automatically adjusting the pricing based on that input.

Odoo 18

This series of enhancements simplifies invoice and bill management, making the process faster and more accurate for users.

47.9 SEPA Credit Transfer / ISO20022

SEPA, or the Single Euro Payments Area, is an EU initiative aimed at streamlining and harmonizing euro-denominated bank transfers across member countries. It enables businesses to automate bank wire transfers by sending payment instructions directly to their banks in a standardized format. In Odoo 18 Accounting, to make use of SEPA for vendor payments, you need to activate the SEPA Credit Transfer (SCT) feature. This can be done by navigating to Accounting > Configuration > Settings > Vendor Payments and enabling the SEPA Credit Transfer (SCT) checkbox.

Odoo 18

Once activated and your company information is properly filled out (including IBAN and BIC details), you can select SCT as a payment method while paying vendors, allowing for smooth and compliant processing of euro payments through SEPA. In the specified fields, mention the Identification and Issuer.

To activate SEPA payment methods on bank journals in Odoo 18, go to the Accounting Dashboard, locate your bank journal and click on the three-dot menu (⋮) to open additional options.

Odoo 18

Choose Configuration from the dropdown.

Odoo 18

In the Outgoing Payments tab of the bank journal settings, ensure that SEPA Credit Transfer is selected under Payment Method. If it’s not already listed, you can add it using the "Add a line" option.

In Odoo 18 Accounting, you can register vendor payments made via SEPA Credit Transfer with ease. To do this, navigate to Accounting ‣ Vendors ‣ Payments, and when creating a new payment, simply select SEPA Credit Transfer/ ISO20022 as the Payment Method.

Odoo 18

For the first SEPA payment to a vendor, you must fill out the Recipient Bank Account field with IBAN, and BIC (Bank Identifier Code). Odoo will automatically validate the IBAN format to ensure it meets international standards. For subsequent payments, Odoo will remember and automatically suggest the previously used bank account details. However, you still have the flexibility to select a different account if needed.

Once the payment is recorded, make sure to confirm it. Alternatively, if you're paying a vendor bill directly, you can use the Pay button at the top of the bill. This method opens the same payment form, but links the payment directly to the bill, allowing automatic reconciliation between the bill and the payment.

47.10 Stock Valuation

Under the Stock Valuation tab in the Settings menu of Odoo 18 Accounting, the General Account Properties field includes configuration options such as the Income Account and Expense Account. The Income Account is the account that records the revenue generated from the sale of stockable products. It reflects the income side of stock transactions and is essential for recognizing sales in your financial statements. The Expense Account, on the other hand, records the cost associated with purchasing stockable products. It reflects the outgoing value when stock is received or consumed and is important for accurate cost accounting and profit calculation.

Odoo 18

These account fields are essential for automating the financial impact of inventory movements and ensuring that income and expenses related to inventory are properly tracked in your books.

In Odoo 18 Accounting, Work-in-Progress (WIP) accounts are used to track the value of unfinished goods during the production process. These accounts temporarily hold the costs incurred; such as materials and labor, until the manufacturing of the product is completed. Once the production is finalized, the accumulated costs are transferred from the WIP account to the appropriate inventory or expense account.

Two key types of WIP accounts can be configured:

  • WIP Account: This account stores the direct production costs associated with goods in progress. It typically includes raw materials consumed and any direct labor applied during the manufacturing phase.
  • WIP Overhead Account: This account tracks the indirect production costs, such as factory overheads (utilities, depreciation, etc.), that are associated with goods under production but not directly tied to any one unit.

By using both accounts, businesses can accurately capture and allocate total production costs, ensuring proper valuation of inventory and better visibility into manufacturing efficiency.

Odoo 18 Accounting continues to enhance business efficiency with its comprehensive features, ensuring streamlined financial management. With these advanced tools, companies can simplify their accounting processes, improve accuracy, and stay ahead in a rapidly evolving financial landscape.

whatsapp_icon
location

Calicut

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

location

Kochi

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

location

Bangalore

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

Send Us A Message