What is the Accounting Workflow for Reconciliation?
Odoo handles reconciliation in an unexpected manner for me, and I'm not the only one. Here are others that have the same problem:
UserV has the same problem:https://www.odoo.com/forum/help-1/question/bank-statement-reconciliation-with-paid-bank-journals-73641
Kevin has the same problem: https://www.odoo.com/forum/help-1/question/bank-statement-reconciliation-functionality-73101
Cameron has the same problem: https://www.odoo.com/forum/help-1/question/what-is-reconciliation-in-openerp-12151
Odoo has a lot of reconciliation capability, so I imagine there can be an explanation.
My expectation: We receive a supplier invoice, and validate it. We then use the accounts aging report ("Aged Partner Balance") to determine which invoices require payment. We then pay the invoice, and record the payment in Odoo, moving the invoice to the 'Paid' state . At the end of the month, we then reconcile from the bank or credit card statement, to confirm, for example, that the check has been cashed. Reconciling itself does not create accounting entries (simply marks the existing entries as reconciled).
Odoo Behaviour: The act of reconciling in Odoo creates journals entires. And only the "Unpaid" invoices are available to be reconciled.
What is the correct workflow?: How is everyone managing this? I don't think it's acceptable to wait until the end of the month to mark the invoices of paid, as the paid invoices needs to be tracked as they occur. Is there a setting to prevent reconciling from moving the invoices from Open to Paid? Is it really necessary to install a module as Kevin pointed out ('Bank and Cash Statement with Vouchers'), as this cannot be done on the SaaS version? I am hoping there is one most correct workflow for this fundamental accounting process, and that is accomplished by Odoo without modules and tweaking.
Workaround: What I am also wondering, is it the case that in North America, reconciliation has a different definition then other countries? The workaround I am considering is to not use Odoo's reconcilation functionality, and manually 'reconcile' the bank statement lines items with the journal entries. I accomplish this by storing the bank line item in Excel, and opening the "Journal Items" report in Odoo, and checking them off as reconciled in Excel.