1. Accounting Release 8 Original version by Odoo November 03, 2014 Contents 1 Introduction 3 2 Video Case Study 3 3 Start with Odoo Accounting 3 4 Manage Journal Entries 3 4.1 Generate Entries from Invoices Automatically . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4.2 Encode Miscellaneous Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Encode your Bank Statements & Process Reconciliations 4 5.1 Setup your Bank Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5.2 Register a Full Payment from a Bank Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5.3 Register a Partial Payment from a Bank Statement . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5.4 Handle Discounts in Bank Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5.5 Manage Bank Fees including VAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 Customize your Accounting 6 6.1 Make your own Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6.2 Create your own Journals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6.3 Create a New Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6.4 Set Default Accounts & Taxes on Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6.5 Apply the Correct Taxes & Accounts through Fiscal Positions . . . . . . . . . . . . . . . . . . . 8
2. 2 7 Manage Advanced Payment Processes 8 7.1 Manage Invoices & Payments in Other Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7.2 Manage a Bank Account in Foreign Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7.3 Manage Payments with Checks or Online Methods . . . . . . . . . . . . . . . . . . . . . . . . . 9 8 Open & Close a Fiscal Year 10 8.1 Create a New Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 8.2 Generate Opening Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 8.3 Close a Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 9 Manage your Assets 12 10 Print Financial Reports & Build Your Own Indicators 13 10.1 Print General Ledger, Trial Balance, Balance Sheet, Profit & Loss Reports . . . . . . . . . . . . . 13 10.2 Open Invoices and other Partner Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 10.3 Print your Tax Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 10.4 Create your own Management Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 11 Manage your Operations Effectively 14 11.1 Create Analytic Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 11.2 Set up Analytic Journals and Post Analytic Entries . . . . . . . . . . . . . . . . . . . . . . . . . 15 11.3 Encode Analytic Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 11.4 Manage Analytic Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 11.5 Set up Analytic Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 12 Budget your Operations 16 12.1 Create your Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 12.2 Print & Review your Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3. 3 1 Introduction The Accounting and Finance application works with a smart user interface allowing users to rapidly record finan- cial operations and accounting transactions. With this application, you will be able to easily register payments and reconcile them with invoices. Odoo supports more than 40 accounting localization modules. Available features: • Easy configuration to modify default account receivable/account payable set on customers/suppliers and income/expense accounts set on products; • Easy and quick editing of accounts and journals to fit your company’s accounting structure and reporting needs; • Multiple ways to reconcile payments with invoices (e.g. from bank transfers, checks or cash); • Configuration of accounts to ensure a correct display in the balance sheet and the income statement; • Store all information related to your assets and keep track of the depreciation of each asset. • Apply deferral methods to ensure correct year closing and opening; • Track and gather all the revenues and the expenses dedicated to specific products, activities, departments, etc, in order to analyze the profitability of each of those cost centers; • Dynamic accounting dashboards to give you direct access to key information. • Easy and simple report building to rapidly adapt your reports to your needs and expectations. 2 Video Case Study ITools deals with services & products dedicated to business management. The founder Nick Hawson decided to opt for Odoo as an internal solution but also as a solution to sell to his clients. They started to use Odoo to manage prospection and sales. Now Nick would now like to integrate the Accounting and Finance application to efficiently manage the company’s accounting structure. 3 Start with Odoo Accounting The Billing chapter is a prerequisite. If you have looked at it already, install the Accounting and Finance module. 4 Manage Journal Entries Odoo generates journal entries automatically from validated invoices, receipts, payments so that the amount of items to encode manually is considerably low, unlike traditional Accounting softwares. Note: Some Accounting Concepts: • Account : an account is part of the ledger. Every debit and credit transaction is booked in an account. • Journal : a journal is used to record transactions from one account to another. A journal groups entries by nature, i.e. purchase, sales, etc. 4.1 Generate Entries from Invoices Automatically • Create a sales invoice with some items including taxes.
9. 9 • Encode a supplier invoice in a foreign currency. This invoice will be paid from your main account (i.e. from your own currency). Make sure the conversion rate of this foreign currency is up-to-date. • Confirm the invoice and have a look at the generated entries. • In your bank statement, encode the payment amount in $. Also enter the amount in foreign currency for information. • Reconcile with the invoice. • Close the bank statement and have a look at the payment entry. Notice that the exchange difference is automatically posted to the preset exchange accounts. Note: • The exchange rate applied to invoices or payments in foreign currencies is set from the last rate update for which the date is prior to the operation date. • You can set a secondary currency as default currency within a specific journal (sales/purchase journal, bank account, etc.). To do so, select this currency in the dedicated journal. If you set such a currency, you have to apply it as well to its default debit/credit account (Secondary Currency). 7.2 Manage a Bank Account in Foreign Currency Odoo allows you to manage a bank account in a foreign currency. • Create a new foreign bank account from your Company’s settings. • Select a foreign currency for the dedicated journal and its default debit/credit accounts (Secondary Cur- rency). • Create a new bank statement within the new bank journal. • Register the payment. As the account currency is not your company’s one, you can enter the amount directly in the column Amount . • Reconcile with an invoice. • Have a look at the payment entry. The amount in foreign currency is displayed in the Amount Currency column. 7.3 Manage Payments with Checks or Online Methods If you allow your customers to pay their invoices by check or by online payment method (Paypal, etc.), a good practice consists in marking those invoices as Paid through the Payment wizard embedded in the invoice form. This way you can exclude those invoices from your follow-up process. Since you do not get the money in the bank immediately, you have to register those transactions with intermediate accounts first as soon as you get notified about the payment. Whatever the payment method (check, online method, etc), the process is similar. You have the ability to reconcile other accounts than receivable and payable ones. For accounts you need to reconcile - without adding a partner in the bank statement - you just have to tick Allow Reconciliation for the account concerned (in Accounting ! Configuration ! Accounts ! Accounts ). For more information, please refer to https://www.odoo.com/forum/help-1/question/how-can-i-reconcile-general- accounts-from-my-bank-statement-56566 To handle payment methods like Checks, Paypal, etc: • Create a new journal. • Create a new specific account (bank transfer account) as default debit and credit account for this journal. • Set this account as follows: – Internal type: Liquidity;
8. 8 Customize product accounts & taxes as you need. • Open an existing product and change the income account for the product category concerned. • Change the customer taxes for that product. • Create an invoice for that product and see how the default values are proposed. 6.5 Apply the Correct Taxes & Accounts through Fiscal Positions In the customer form ( Accounting tab), in the sales quotation or directly in the invoice, you can set a fiscal position. The Fiscal Position allows you to make an automatic mapping for taxes and revenue/cost accounts depending on the kind or the localization of your customers and suppliers. Indeed, it is often required to register those operations in specific accounts when you sell/buy abroad. • If the customer is located in your own country and if he is subject to default national taxes, you don’t need to set a fiscal position. • If the customer is located abroad and/or subject to a specific tax rate, you need a fiscal position (e.g. In- tracom, Extracom, etc.) that will automatically replace your company’s default taxes by the corresponding tax. • Go to Accounting ! Configuration ! Taxes ! Fiscal Positions . • Have a look at the configuration of default fiscal positions (preset by the chart of accounts installed). • Create a new income or revenue account by duplicating a similar account. • In a fiscal position dedicated to foreign partners, replace the default income account(s) by this new one in the Account Mapping tab. • Create an invoice for a customer with this fiscal position and have a look at the automatic mapping. Tip: • You can also specify country-related settings (a single country or a configurable group of countries) for applying a fiscal position. These fiscal position rules will apply when entering a quotation, based on the location of the delivery address (when available), the invoice address or the standard address, if the Fiscal Position field is left empty in the customer form. • A fiscal position can also be set to only apply in quotations when the customer has a VAT number . If this option is ticked and if you selected some countries or country groups, the system will apply the fiscal position if at least one condition is performed. • If you do not use these country settings, we recommend you to set a (default) fiscal position in the customer form ( Accounting tab) to avoid mistakes when creating quotations or invoices. If you have not set up the customer form correctly, Odoo might suggest incorrect (because always local) taxes in the quotation / invoice. You can always modify the information directly in the invoice before approving it, but it requires some work to change the invoice lines one by one. 7 Manage Advanced Payment Processes This section is dedicated to people who deal with operations in foreign currencies and specific payment methods like checks and online platforms like Paypal. 7.1 Manage Invoices & Payments in Other Currencies • If it is not done yet, tick Allow multi currencies in the Accounting settings. Make sure to add Gain Exchange Rate and Loss Exchange Rate accounts allowing you to post any currency differences automatically.
5. 5 • Tick Opening With Last Closing Balance in the Cash Registers tab in order to automatically set the initial balance of a bank statement as the closing balance of the previous one within the same journal. Note: • As you may notice in the journal form, a dedicated account has been generated automatically at the bank account creation. 5.2 Register a Full Payment from a Bank Statement Before starting, make sure you have at least one open invoice. Keep the total amount in memory. • Create a bank statement with a date, an initial and an ending balance. • Register at least one line dedicated to an open invoice. Set a description (line reference) and a reference (written by the client). Then, select the partner and enter the amounts received and paid. • Click Reconcile to open the Reconciliation interface. The system automatically retrieves the dedicated invoice since the partner and the amount are similar. • Click OK to reconcile. • You will now notice that the invoice has the Paid stage and that the payment is registered under the Payments tab. • Go back to the statement. You can continue to fill it or close it by clicking Close . This will post the associated payment journal entry. So far it is saved in draft. Note: • The ending balance has to be completed at the beginning of the encoding. It helps you avoid encoding mistakes. When closing the statement, Odoo will check if the computed balance is equal to the ending balance. If not, you get a warning message. • Odoo allows you to encode cash payments and manage a cash register . It works exactly like bank statements (payments to encode, reconciliation interface) except that you can apply a cash control at the opening and at the closing if this option is ticked in the journal configuration form (Cash Registers tab). Cash registers also have extra accounts: profit account (to post positive cash differences), loss account (to post negative cash differences), internal transfers account (to post cash in / cash out). Find more about Cash Registers operations in the Point of Sale chapter. 5.3 Register a Partial Payment from a Bank Statement You just received a partial payment from one of your customers... • Make sure you have an open customer invoice. • Register a partial payment and reconcile the partial payment against the invoice in the bank statement. • Check the invoice balance and the payment. 5.4 Handle Discounts in Bank Statements Lots of companies give discounts to their customers in case of early payment. The Reconciliation interface of Odoo enables you to handle such a case easily. You agreed a discount of 2% on the total invoice amount with your best customer if he pays the invoice within 7 days. • Record a new bank statement with a discounted amount.
16. 16 To be able to encode several analytic accounts per invoice line: • Tick the option Use multiple analytic accounts on sales and/or Use multiple analytic accounts on orders in Accounting settings. The related modules (Sales/Purchase) have to be installed. • Create a new analytic ledger from the view type. • Create several analytic accounts in this last ledger and set them as Analytic Account. • From an invoice, fill in an analytic distribution. • Have a look at the generated analytic items. Note: • You can already set analytic distributions from sales or purchase orders. 11.4 Manage Analytic Plans Analytic distributions allow to split a revenue/cost into several analytic accounts. Odoo embeds also a skeleton tool for those distributions in order to lead the user when selecting the accounts: the analytic plans. • Create an analytic plan with several axes from Accounting ! Configuration ! Analytic Accounting ! Multi Plans . • Select this plan in the Sales or Purchase journal in order to get it as a skeleton for new analytic distributions of related invoices. • From an invoice, fill in a new analytic distribution. • Test the minimum and maximum allowed imputation rates. • Give a name and a code to this distribution and save it as a model. • Retrieve this model from a second similar invoice. 11.5 Set up Analytic Defaults Now that you are acquainted with the analytic accounts, you can push it even further with automation! Add default analytic accounts or distributions to products, partners and users. Analytic defaults can also be defined for a specific period, or start from a specific day only. This feature is installed together with the analytic distributions since they are tightly linked to the same needs. To establish default analytic values: • Go to Accounting ! Configuration ! Analytic Accounting ! Analytic Default and create a first rule by selecting a distribution, a product and a partner. • Create an invoice for that partner and product to retrieve the distribution automatically. 12 Budget your Operations Budgets are important for a company to get a good grip on forecasted expenses and revenues. They allow you to measure your actual financial performance against the planned one. Odoo manages its budgets using both General and Analytic Accounts.
4. 4 • Confirm it and have a look at the generated journal entry from the Other Info tab. You can also retrieve it from Accounting ! Journal Entries ! Journal Entries . Note: • The default partner account is set in the partner form. This account is a Receivable account for sales invoices or a Payable one for purchase invoices (Internal Type). • The default income & expense accounts of invoice lines are set from: – 1. the product form (Accounting tab); – 2. the internal category form of the product if (1) is not set (default configuration). • The default taxes to apply are set at the product level. If no tax is defined, Odoo considers the default tax set for the account of the invoice/receipt line. Depending on the fiscal position associated to the partner or directly to the invoice, those taxes can be replaced in order to fit the partner localization. • If the Payment Term applied to the invoice is considering several deadlines , the debit amount dedicated to the receivable account (customer one) is split into several journal items (one per deadline). 4.2 Encode Miscellaneous Entries If you don’t have any idea about reconciliation, we recommend you to have a look at the next section first. It could happen that your customer is also a supplier. Instead of paying the full amount to your supplier and wait for the customer to pay, you might want to reconcile these entries and pay or get paid only the difference. Let’s show you how to do this in Odoo. • Create a supplier invoice. • Create a customer invoice with a higher amount than the supplier invoice. • Create a miscellaneous entry to balance the supplier invoice with part of the customer invoice. • Do a manual reconciliation of supplier entries. • Do a manual, partial reconciliation of the customer entries. 5 Encode your Bank Statements & Process Reconciliations Encoding your bank statements in Odoo allows you to: • Record payments in your books; • Monitor your cash level; • Track the remaining balances your clients have to pay by reconciling invoices & payments; • Process follow-ups actions. Your bank statements can be encoded manually or imported from CSV files. You can proceed as you prefer for the following exercises. An import template is provided in the training material repository. Before importing make sure the content of this file fits your open invoices in terms of related partners, amounts and references. Feel free to change the content of this CSV file with any Spreadsheet software. For more info on bank statements, refer to https://www.odoo.com/forum/help-1/question/how-can-i-reconcile-my- bank-statements-56050 5.1 Setup your Bank Account Before starting with bank statements, let’s have a look at the bank journal configuration. • Open the journal dedicated to your bank account. • Edit the sequence. e.g. Replace “BNK3” by the initials of your bank.
10. 10 – Account type: Bank; – Allow Reconciliation ticked in order to be able to reconcile items afterwards. • From the open customer invoice, click Register Payment , select the new journal and register the payment. • Have a look at the payment journal entry. • Set up a bank statement operation template dedicated to this payment method. • Register the bank statement. • Once in the reconciliation interface, select the new template to handle the balance. • Close the statement. • [OPTIONAL] Reconcile the Paypal account items from Accounting ! Journal Entries ! Journal Items . Setup a custom filter in order to automatically retrieve the right items to reconcile. 8 Open & Close a Fiscal Year In Odoo, the fiscal period determines in which financial year the accounting entries will be posted. You can define monthly or quaterly periods. You can close fiscal periods and fiscal years to ensure that no new accounting entries can be booked in these periods/years. At the end of a financial year, you will have to transfer the closing balance of that year as an opening balance to the new financial year. With Odoo you can automatically post such an entry, allowing you to start the new financial year with the correct account balances. 8.1 Create a New Fiscal Year • Create the new Financial Year from Accounting ! Configuration ! Periods ! Fiscal Years . • Generate associated periods, either monthly or 3-months, from the dedicated button. • Now you can record new journal entries within those new periods. Note: • A specific opening period is automatically generated if you create the periods from one of those two buttons. This period is specifically dedicated to opening entries. Both start and end date typically match the first day of your financial year (e.g. 01/01/YYYY). 8.2 Generate Opening Entries Generating opening entries in a fiscal year can be done several times in a row should changes have been registered in the previous financial year. Once all entries in the previous financial year have been finalized and the balance sheet and the P&L have been checked, you can revert the temporary opening entry and update it to the latest situation. The wizard allows you to transfer account balances or (unreconciled) items from one fiscal year to another, so no need to create a manual opening entry when you have kept your books in Odoo. Go through several steps to automatically create opening entries for your fiscal year in Odoo. • To automatically generate the opening entries based on your actual books, go to Accounting ! Periodic Processing ! End of Period ! Generate Opening Entries . • Select the Fiscal Year to close (financial year for which you want to transfer the balances) and the New Fiscal Year (the year in which you want to generate the opening entry).
7. 7 6.2 Create your own Journals All your accounting entries need to appear in an accounting journal, which is a record of transactions ordered by date. Some default journals are preset (a Sales Journal for customer invoices, a Sales Refund journal for customer credit notes, a Purchase Journal for supplier invoices, a Purchase Refund journal for supplier credit notes and a Bank Journal for bank transactions). New journals can be created for specific payment methods, etc. Create a new journal dedicated to a new customer’s payment method. • Create the journal from Accounting ! Configuration ! Journals . • Set a default debit and credit account. • Customize the sequence number. Note: • The entry sequence determines the automatic numbering for accounting entries. • Default accounts of Sales, Purchase and Refund journals are applied by default when encoding manual journal entries. • Default accounts of Bank & Checks/Cash journals are automatically used as payment accounts in payment entries. • A journal can be marked as being centralised . This option is used when posting opening entries in a situation journal for opening entries. • You can have control on journals in Odoo and put conditions on the general ledger accounts about which journal can use a given account. 6.3 Create a New Sales Tax VAT legislation changes occur frequently so you need a flexible tool enabling you to easily update or create new taxes. • Go to Accounting ! Configuration ! Taxes and duplicate the main sales tax. • Change the rate. • Create dedicated Account Base Code & Account Tax Code to apply both for invoices and refunds. • Have a look at the Chart of Taxes composed of tax codes. Note: • Tax Included in Price : when checked, the price shown in the product or invoice is inclusive of this tax. It is especially useful when you are dealing with end consumers (Point of Sale, e-Commerce applications). • Included in base amount : when checked, the tax is added to the base amount of the next selected tax (in terms of sequence) and not shown separately, such as Eco taxes that are also taxed like product items. • Tax on Children : when checked, the tax calculation is applied to the output from other tax calculations specified in the Child Tax Accounts field (so you can have taxes on taxes), otherwise the calculation is applied to the base amount of the transaction. • Account Tax Code : tax code (Tax declaration section) to record the calculated tax amount. • Account Base Code : tax code (Tax declaration section) to record the invoiced amount (exclusive of taxes) the tax is calculated on. • More info about Tax Structure Management with Odoo on https://doc.odoo.com/book/3/3_9/tax_structure/ 6.4 Set Default Accounts & Taxes on Products For each product, and even better per product category, you can set the default income and expense account that will be proposed for invoices. You can also set the default taxes for products, even in such a way that when you create a new product, the default taxes will automatically be added.
11. 11 • Select the dedicated journal period to post the opening entries. The description for the opening entry is proposed by default as “End of Fiscal Year Entry”, but of course you can enter your own description, such as “Opening Entry for financial year YYYY”. Then you click the Create button to generate the opening entry according to the settings defined. • Have a look at the draft opening entry that has been generated. Go to Accounting ! Journal Entries ! Journal Entries . From the filterbox, click Unposted to filter only draft entries. Open the corresponding opening entry and verify the data. • Click the Post button to confirm the entry if everything is correct. Note: • In order to report the profit or loss of the past fiscal year into the balance sheet of the new financial year , the opening entry includes a counterpart of both debit and credit sums of the balance sheet accounts (Credit/Debit Centralisation). The balance of those two opening items is the profit or loss amount. Those counterparts are registered in the default debit/credit account(s) set in the Opening Entries journal. • An Opening Entries journal is already preset with the following parameters: – Type: Opening/Closing Situation; – Standard debit/credit account: the transfer accounts for profit & loss in the balance sheet; – Centralized counterpart ticked (option to avoid a counterpart on each line, and instead have one debit and one credit entry in the corresponding opening account). • The deferral method of each account is set through its Account Type (see Account configuration form). This deferral method determines whether and how account entries will be transferred to the new financial year. There are four possible deferral methods: None, Balance, Detail, Unreconciled. For more informa- tion, please refer to https://www.odoo.com/forum/Help-1/question/What-is-an-Account-Type-and-how-can- I-configure-it-54106 • For more information on opening a fiscal year , please refer to https://www.odoo.com/forum/how- to/accounting-finance-8/how-can-i-transfer-my-fiscal-years-balances-to-my-new-financial-year-54378 • When you start using Odoo for the first time, you will need to enter the closing balance from your previous accounting package as the opening balance for your various accounts. Enter the balance accounts and the open invoices for suppliers and customers in the opening period of your new financial year. For more information, please refer to https://www.odoo.com/forum/how-to/accounting-finance-8/how-can-i-transfer- my-fiscal-years-balances-from-my-previous-accounting-package-to-my-new-financial-year-in-odoo-54385 Tip: • As long as the audit is ongoing, extra entries may be added to the financial year to close. To automatically have the correct balances, Odoo allows you to use the Cancel Opening Entries wizard. This wizard will automatically cancel the existing opening entry. To update the balances to show the correct results, you should run the Generate Opening Entries wizard again. The new opening entry will contain the correct balances. This way, you can generate your opening entry as many times as required. • You can transfer the new opening balance numerous times, because you normally don’t close a year at once. Correction entries will have to be made by the accountant, due to which balances will change. The new balance can easily be transferred through a wizard, so you do not have to keep track of each correction entry made in the previous financial year. 8.3 Close a Fiscal Year Closing a year is not mandatory, and you could easily do that sometime in the following year, when your accounts are finally sent to the statutory authorities, and no further modifications are permitted. This action cannot be undone. To close a financial year, go to Accounting ! Periodic Processing ! End of Period ! Close a Fiscal Year . A wizard opens asking you for the financial year to close. When the year is closed, you can no longer create or modify any transactions in that year!
6. 6 • Process the reconciliation. • Choose the right invoice (if there are several open invoices). • As the amount is not exactly the same, click Open balance and select the appropriated expense account. • The discount amount is proposed, but can be changed when incorrect. When the balance is equal, the button OK will appear. • Click OK , close the statement and have a look at the generated journal entry. Tip: • If the issued invoice is including VAT , the granted discount must decrease this VAT amount. To do so, you can select a tax in the reconciliation tool. The tax amount is computed upon the balance amount. As the balance amount is always VAT included, you have to select a tax for which Tax Included in Price is ticked in order to get a balanced reconciliation automatically. • If this is a regular discount , you can save this balance operation as a template in Accounting ! Configu- ration ! Miscellaneous ! Statement Operation Templates . 5.5 Manage Bank Fees including VAT Banks often charge VAT. Not everyone wants to enter these expenses as an invoice. Most of the time, such costs are entered directly from the bank statement. Your bank charges you banking fees with VAT for your international transactions. • Add Banking Fees with VAT as a template. Make sure to use VAT inclusive. • Register the bank fee amount in the bank statement and click Reconcile . • Click Counterpart and choose the right template. Notice how Expenses and VAT are split. • When the balance is equal, the button OK will appear. 6 Customize your Accounting 6.1 Make your own Chart of Accounts To create a new account: • Go to Accounting ! Configuration ! Accounts ! Accounts and duplicate a similar account if possible in order to get a preset account. • Link it to the corresponding parent account. • Set appropriate internal and account types. • Tell the system this account can be reconciled, e.g. if it is a partner account. Tip: • From the Chart of Accounts view, you can quickly check the structure of your chart of accounts. This view can also be used for reporting purposes. It even allows you to drill down from the balance to the general ledger.
14. 14 Tip: • You can print the Partner Ledger and Overdue Payments for specific partners from the Customers/Suppliers menu (click Print). 10.3 Print your Tax Declaration To print your Tax Declaration, go to Accounting ! Reporting ! Generic Reporting ! Taxes . The structure of this report is composed of tax codes. Tip: • Tick Display Detail in order to print a detail per journal account within each tax code section. 10.4 Create your own Management Indicators Odoo allows you to create your own management indicator reports or to modify the default ones (Balance Sheet, Profit & Loss) from the menu Accounting ! Configuration ! Financial Reports ! Account Reports . You can print these reports from the menu Accounting ! Reporting ! Legal Reports ! Accounting Reports . Just like for accounts, you can add structure to your reports. Let’s change the structure of the Profit & Loss report. • For the Income part you want to display the child accounts without hierarchy. • Print the Profit & Loss report with debit and credit. 11 Manage your Operations Effectively Sitting at the heart of your company’s processes, analytic accounts (or cost accounts) are indispensable tools for managing your operations well. Unlike your financial accounts, they are for more than accountants - they are for general managers and project managers, too. You need a common way of referring to each user, service, or document to integrate all your company’s processes effectively. Such a common basis is provided by analytic accounts (or management accounts, or cost accounts, as they are also called) in Odoo. Analytic accounts are often presented as a foundation for strategic enterprise decisions. But because of all the information they pull together, Odoo’s analytic accounts can be a useful management tool, at the center of most system processes. Note: Some Analytics Concepts: • Analytic Account : cost center, project (used to gather revenues & costs in order to analyze the profitability associated to a department, a resource, a product, a project, etc.) • Parent Analytic Account : gathers all the amounts recorded in child accounts and allows you to create a structured analytic chart. • Analytic Journal : where analytic entries are posted. The analytic journal has to be defined in the account- ing journal dedicated to the accounting operation concerned (Sales journal, Purchase journal, Cash, Bank, etc.).
13. 13 10 Print Financial Reports & Build Your Own Indicators You can print several reports from Odoo, both for accounts and for customers or suppliers. 10.1 Print General Ledger, Trial Balance, Balance Sheet, Profit & Loss Reports To print official accounting reports, go to Accounting ! Reporting ! Legal Reports . Note: • The General Ledger will give you the details of each account with debits and credits, and shows all trans- actions in an account, for one period, for several periods or for a financial year. • The Trial Balance shows one amount (either debit or credit) for each account. The aim of the trial balance is to prove that the total of all debit balances is equal to the total of all credit balances. • A Balance Sheet is a financial statement that summarizes the assets, liabilities and shareholders’ equity of a company at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. • The Profit & Loss Report is a financial statement which gives a summary of the revenues, costs and expenses during a specific period of time. Such a report provides information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as an “Income Statement”. The purpose of the Profit & Loss Report is to show managers and accountants whether the company earned or lost money during the report period. In general, the Profit and Loss report will be used to determine profit ratios, to examine sales prices and costs, and to set marketing budgets, for instance. Tip: • To print the General Ledger or Trial Balance for one or more accounts, go to Accounting ! Configuration ! Accounts ! Accounts . Select the account(s) for which you want to print the general ledger and click the Print ! General Ledger / Trial Balance report at the top of the screen. • You can print a general ledger or trial balance for all posted entries (meaning entries with a Valid state) or all entries, in which case the report will also print entries in a draft state. This option is useful, for instance, when you are preparing miscellaneous entries related to the closing of the financial year. • When you choose to print the general ledger from one date to another, or for one or more periods, you can also have the initial balances printed for the periods preceding the periods you selected. You can sort the report by date or by journal / partner. • In the Balance Sheet wizard, tick Enable Comparison and select the fiscal year or period to which you want to compare the data. 10.2 Open Invoices and other Partner Reports Odoo embeds some default reports about journal items related to your partners. You can print the Partner Balance, the Aged Partner Balance and the Partner Ledger from Accounting ! Reporting ! Generic Reporting ! Partners . Note: • Aged Partner Balance is a more detailed report of your receivables by intervals. When opening that report, Odoo asks for the size of the interval to be analyzed (in days). Odoo then calculates a table of credit balance by period. So if you request an interval of 30 days to the past, Odoo generates an analysis of creditors for the past month, past two months, and so on.
17. 17 12.1 Create your Budgets • Apply Budget management in Accounting settings. • Set up Budgetary Positions from Accounting ! Configuration ! Budgets ! Budgetary Positions . • Create a budget from Accounting ! Budgets ! Budgets . • Set several budget lines dedicated to an analytic account (at least one per budgetary position) with start & end dates and a planned amount (positive for sales and negative for expenses). • Confirm and Approve the budget. Note: • Budgetary Positions logically group general accounts for which you want to keep budgets, according to sales or purchases. • The Theoretical Amount indicates the actual amount that might have been realised for the budget concerned according to the current date. When your budget is 1200 for 12 months, and today is the 30 October, the theoretical amount will be 1000, since this is the actual amount that could have been realised to date. • The percentage for a budget is calculated as follows: (practical amount / theoretical amount) x 100. This way you get a view on how much of the forecasted amount has been actually realised in your accounting. • A budget has various stages: – Confirmed : the budget is to be reviewed, but it can still be changed before actual approval; – Approved : the budget is approved by the budget holder; the name of the user approving the budget will be displayed in the Validate User field; – You can cancel a budget and reset it to draft for the two preceding steps; – Done : the budget is fully approved and no changes will be allowed. You can no longer cancel the budget and reset it to draft. 12.2 Print & Review your Budgets To print a budget and make calculations of expenditure through budget, use the menu Accounting ! Budgets ! Budgets . • Select one or more budgets and then click Print Budgets to create the report for each, in a date range of your choice. This report gives an overview of each analytic account included in your budget, according to the individual budgetary positions for that account. From the percentage and the comparison of planned (budgeted) and practical (actual) amounts, you have a good view on your situation. • Print also the Print Summary report. It will give you a total per analytic account (without splitting by budgetary position). • Review your budget by duplicating it and modify the planned amounts. Note: • Each of these reports can be printed from a specific date to a specific date. The End Date selected in the wizard determines how the theoretical amount will be calculated; if you select the last day of your financial year, the theoretical amount will be calculated as a function of that date (thus considering a complete financial year). Note that the theoretical amount will be zero when the Paid Date entered is equal to or greater than the End Date for the budget. • Even though you can modify a budget at any time to make a revision , we recommend you to create a new budget, because otherwise you will have no history of changes. Rather than edit an existing budget, make a new version so that you can keep your original estimates safe for comparison. This lets you analyse your changing perspectives of the company from revision to revision.
12. 12 We recommend you to always make a backup of the database or to check carefully your books before closing the fiscal year. 9 Manage your Assets In Odoo, you will manage the assets owned by your company or an individual and keep track of depreciation occurred on those assets. It also allows you to create accounting moves of the depreciation lines. To manage your assets in Odoo: • Tick Assets Management from the Accounting settings or install the Assets Management app. • Create an asset category, to be linearly depreciated during 5 years, with one posting a year. • Create an asset for this category from a new purchase invoice. • Confirm the asset from Accounting ! Assets ! Assets . • Post the asset entry from Accounting ! Periodic Processing ! Recurring Entries ! Compute Assets . • Check the asset analysis reporting from Reporting ! Accounting ! Asset Analysis . Note: • There are two Computation methods : Linear and Degressive. – The Linear method consists in depreciating portions of the original cost in equal increments over a period, with or without a salvage (= scrap or residual) value. Calculation for the Linear (or straight-line) method: (Annual Depreciation Expense = Cost of Fixed Asset - Residual Value) / Useful Life of Asset (years) – The Degressive method means a higher depreciation charge in the first year of an asset’s life that is gradually decreasing over the next years. Calculation for the Degressive (or declining balance) method: (Annual Depreciation = Depre- ciation Rate x Book Value at Beginning of year (where Book Value = original cost - accumulated depreciation). • Degressive Factor : If computation method is Degressive, you have to specify the degressive factor (i.e. the % used for declining-balance depreciation, e.g. 20%). • Time Method : this method determines how the dates and the number of depreciations will be computed. There are two options: Number of Depreciations or Ending Date. – Time Method Number of Depreciations : You have to specify the number of times the goods will be depreciated, e.g. 5 years or 60 months, in the Number of Depreciations field. You have to indicate the Period Length, meaning the number of times in 1 year you will post a depreciation entry (so, the duration in months between two depreciations). If you set this value to 1, for instance, Odoo will create 12 entries in one year (one entry each month). If you set this to 12, Odoo will create a single depreciation entry each year. – Time Method Ending Date : You have to indicate the Period Length, meaning the number of times in 1 year you will post a depreciation entry (so, the duration in months between two depreciations). If you set this value to 1, for instance, Odoo will create 12 entries in one year. If you set this to 12, Odoo will create a single depreciation entry each year. You should specify the Ending Date for the depreciation. Depreciations will not go beyond this date. • Assets Management in Odoo comes with the Prorata Temporis depreciation option. Prorata Temporis means that your asset will be depreciated from the purchase date of the invoice, and not from the start date of your financial year. The depreciation cost will then be limited to the actual number of days the asset is used. • Asset Account : This account holds the purchase value and will be credited when depreciation line is posted. • Depreciation Account : Account, can be the same as the Asset Account or it can be different for storing depreciation separately (credit side). • Depr. Expense Account : Expense account which will be debited when the depreciation line is posted. • Skip Draft State : If the checkbox is ticked, assets of this category will automatically be confirmed when created from a purchase invoice. If you do not tick this checkbox, you will have to confirm the asset before depreciation will start.
15. 15 11.1 Create Analytic Accounts Start by choosing the most suitable analytic representation for your company before entering it into Odoo. To create the different analytic accounts, use the menu Accounting ! Configuration ! Analytic Accounting ! Analytic Accounts . Note that the data you see when creating an analytic account will depend upon the business applications installed. • Activate Analytic accounting from the Accounting settings. • Create a new analytic ledger. • Create an analytic account in this ledger. • Duplicate this account and rename it. • Check the Chart of Analytic Accounts. Tip: • If you have Sales installed, you can tick the option Analytic Accounting for sales in the Accounting settings. This will allow you to already add an analytic account in the sales offer (cfr Contract section in the Billing chapter). 11.2 Set up Analytic Journals and Post Analytic Entries Each analytic entry must be posted in an analytic journal. By default some default analytic journals are preset depending on the applications installed (Sales, Purchase, Timesheets). • Go to Accounting ! Configuration ! Analytic Accounting ! Analytic Journals and have a look at the default journals. You can create new ones if needed. • Open the Sales Journal in Accounting ! Configuration ! Journals . The associated analytic journal is set. This link is mandatory to automatically generate analytic entries from any journal entries (invoice, payment, etc.). • Validate a purchase invoice with cost centers defined. • Have a look at the analytic entry in Accounting ! Journal Entries ! Analytic Journal Items . • Open the Chart of Analytic Accounts. Drill down to the referenced account(s). Note: • You can already select analytic accounts from sales or purchase orders . It is especially useful when you manage customer contracts. Tick Analytic accounting for sales and/or Analytic accounting for purchases in Accounting settings to do so. It is already set up if you are using the Contract Management app. • Regarding timesheets , the analytic journal is set in the employee form (HR settings tab). • To perform accurate analytic analysis by crossing data , go to Reporting ! Accounting ! Analytic Entries Analysis . • You can print several kinds of reports from analytic entries: – To print analytic journals , go to Accounting ! Reporting ! Generic Reporting ! Analytic . – To get account balances or account ledgers , go to the analytic accounts list in Configuration and click Print . 11.3 Encode Analytic Distributions If you need more than one analytic ledger, you can easily create new ones. But suppose you want to attribute sales revenue or purchase costs to several analytic charts at the same time (customer contracts, employees, vehicles, etc.). Then the Analytic Distribution apps might be exactly what you need!
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