Accounting configuration in Odoo

Accounting is the most crucial and significant component of every organization. Keeping track of a company’s accounting manually is a difficult task. The business’s total success will be impacted by the risks of errors.
Odoo ERP is the greatest option for managing accounting. Accounting can be managed properly and efficiently with the help of the advanced features available in Odoo. Accounting Module is one of the tools on the Odoo platform for increasing business productivity. The module streamlines accountants’ tasks and enables cash flow tracking for businesses.

Configuration

The process of implementing an ERP is crucial. Every time we deploy an ERP, we must set its features and functions. Configuration in this context refers to making the ERP’s functionality available in a way that will benefit your company’s operations.

INVOICING

1. Payment Terms

In order to inform the consumers while making the payment, the invoice must contain the information known as Payment Terms. Payment terms frequently make it simple for customers to schedule their payments and move forward with purchases as necessary. Additionally, it will guarantee that your organization has a regular financial flow without delays in payments.

2. Follow Up Levels

It mostly aids clients with bill payment. Sending customers notifications about their outstanding balance, the date their invoices are due, and any late payments.

3. Incoterms

Incoterms stands for International Commercial Terms. Incoterms are exclusively used for informational reasons in OpenERP, facilitating business operations on a global scale. Incoterms are essentially commercial phrases that are issued by the International Chamber of Commerce (ICC) and are often used in both local and international trade contracts.  They are primarily used to communicate the responsibilities, costs, and risks involved in the transportation and delivery of goods.

4. Intrastat

Intrastat is the mechanism for data collection and statistical production of goods traded between EU Member States. It collects data on commercial transactions of goods, transportation of goods without ownership, returns of goods.

BANKS

1. Reconciliation

This process aids the user in comparing the bank details of an individual or a firm. A person can use bank reconciliation to compare the accounts and see if there are any discrepancies. This aids in taking prompt remedial action when any variances are noticed. As a result the administration of company revenue and expenditure will be transparent. This will enable the user to quickly see whether any checks have bounced or any payments are overdue.

2. Online  Synchronization

Online Synchronisation is a feature in Odoo that enables you to instantly connect your company’s bank account, which is beneficial for Financial Management.

ACCOUNTING

1. Chart of Accounts

A chart of accounts is a list of all the accounts that are utilized in a company’s general ledger. It provides a comprehensive list of all accounts.  The chart of accounts in Odoo defines which interacts with the balance sheet or profit-and-loss accounts. Depending on the needs, each organization creates its own chart of accounts.

2. Journals

The data from accounting transactions that reflect the business events of the firm are recorded in journal entries and posted in the ledger. In order to provide accurate financial records, the journal production, approval, publishing, and editing processes are coordinated.

MANAGEMENT

1. Asset Models Management

In business, assets are crucial because they help a firm grow and make more profit, provide value, and maintain operations. Asset management is the process of keeping track of, organizing, and selling a company’s assets. Understanding a business’s loss or gain depends on the assessment of its assets and its most recent operating circumstances. Odoo Asset models management for your business makes it simple to arrange depreciation over a specific duration. The records make it simple to identify assets that have been misplaced or damaged.

2. Deferred Revenue Models

Deferred Revenue is the advance payment that has been recorded under the beneficiary’s liability account until an internal task is initiated on the product conveyance. Since the receiving firm still owes its consumers these goods or services, such payments represent a liability for that company. Deferred revenues are handled by Odoo Accounting by splitting them up into several entries that are automatically prepared in draft mode and then posted on a regular basis.

3. Deferred Expense Models

Deferred expenses are those that have already been paid for goods or services that will eventually be received or used. For the company, these expenses are viewed as or regarded as current assets. The payment cannot be included in the current profit and loss statement or the income account since it will be expensed in the future.

4. Budgetary Positions

The budgetary positions serve as a restriction on what may be included in the budget’s Practical Amount column. There must be at least one account from the general ledger (the primary chart of accounts) assigned to each budgeting position. It will not appear in the Practical Amount column of that budget line if you record a journal entry with an analytical account attached to it that is included in a budget line but a general ledger account that is not included in the budgetary position for that same budget line.

5. Disallowed Expenses

Disallowed Expenses are those that can be removed from your financial result but not from your bookkeeping result. Setting prohibited spending categories and collecting periodic adjustments allows you to acquire the financial results in real-time.

ANALYTIC ACCOUNTING

1. Analytic Accounts

An analytical account filters or analyzes a single account without making a journal entry. Instead of a cost center in Tally, it may utilize an analytical database in Odoo. We may make use of it to determine the precise cost of a good or service and to evaluate a business’s costs in terms of its assets and budget. For instance, we’ll put up a distinct analytical account for this particular product if you want to track the cost details of one product separately from the price of your whole inventory.

2. Analytic Account Groups

The grouping of the company’s features will aid in their classification, which may be done gradually to the financial management processes. In Odoo you may establish Analytic Account Groups in the Accounting module, which will assist you with the platform’s stated Analytic Accounts’ classification requirements.

3. Analytics Default Rules

The Analytics Default Rules in Odoo let you control the operational elements of the numerous Analytical Accounting components of the business operations.