Odoo Accounting

Configure Odoo Accounting

To configure Odoo accounting, you need to configure correctly all this settings :

• Import chart of account : Odoo has already a predefined chart of account but you need to match with your existing chart of account.
• Fiscal year: If your fiscal year is not the same than the normal year, you can specify your yearly end date.
• Product categories : On product category, you can configure the default income and expense account for all products in this category. You can also configure information regarding the inventory automatic valuation
• Payment acquirers: You can configure how you will get paid. There are several payment acquirer already installed like PayPal or Stipe.
• Journals: You have to configure all the journals you have.
• Taxes: When you install your fiscal localization, Odoo will install all the default taxes for your localization. But you need to verify that it's correct.
• Fiscal positions: If you are selling in multiple county, you need to configure fiscal positions in order to impact the good income account and to apply the good taxes.
• Invoice payment terms: You can define What are the terms for your customer payments.
• Bill payment terms: You can set your default payment terms for your suppliers.
• Follow-up: You can configure the default follow-up process. You customize emails and letter that will be sent to your customers in late.
• Bank accounts synchronization: You can configure the bank synchronization in order to get all your bank statements synchronized with Odoo every day automatically.
• Currencies: Activate the currencies you need and set the automatic update for the rates.
• Assets models: Define default depreciation model and accounts.
• Default terms and conditions: Define default terms and conditions that are automatically added to your sale order and invoices
• Online payment: You can allow your customer to pay online directly with your payment acquirers
• Batch payment: Activate or not batch payment that allow you to group your payment on batch.
• SEPA: Configure your SEPA information to be able to generate your SEPA Wired transfer to do in a file directly from Odoo
• Invoice template: Customize your PDF Invoice as you want to match your requirements
• OCR for vendor bill : This accounting software can read automatically your vendor bill and prefill the header and lines of the vendor bill
• Check: Configure the format of check you want to print directly from Odoo to pay your suppliers
• Analytics account and budget: Create the analytic account you want to manage your company and define budget to control your expenses

Import data

When everything is configured as well you must import the following data to go live :

• Assets: Import all your asset and define the residual value to depreciate and the number of amortizations left
• Deferred revenues: Import your deferred revenues
• Deferred expenses: Import your deferred expenses
• Balance journal entry or all the journal entries

Odoo accounting Training

It is important in term of project management to train your employees as well. We advice these trainings:

Invoicing and Account receivable

Demonstrate how the account receivable is working in Odoo, then ask the users to do exercises in a staging branch.

Ask them to:

• Create an invoice for $1,000 directly from accounting and to register a payment.
• Create a sale order for $500, then confirm the sale order, deliver the product and create the invoice from the sale order. Register a payment on this invoice.
• Create a sale order for $1,500, then confirm the sale order and create a down payment for 50% of the amount. Deliver the product and create the final invoice from the sale order. Look at the partner ledger and find the $1,500
• On the accounting side, create manually a statement with 4 lines $1,000, $500 and 2 times $750. Confirm the statement and launch the bank reconciliation screen. Reconcile all the lines with payments or invoices.

Account payable

Demonstrate how the account payable is working in Odoo, then ask the users to do exercises in a staging branch.

Ask them to:

• Create a vendor bill for $250 and register a payment.
• Create a vendor bill for $100, don’t create a payment.
• Create a purchase order for $200, receive the products and create the vendor bill from the purchase order. Confirm the vendor bill.
• Create a purchase order for $300, receive the product. Go on accounting, create a vendor bill and find the purchase order to link the vendor bill with the purchase order.
• On the accounting module, create manually a bank statement with 4 lines $250, $100, $200 and $300. Confirm the statement and launch the bank reconciliation screen. Reconcile all the lines with vendor payments or vendor bills.

Asset and depreciation

Demonstrate how asset and automatic depreciation is working, then ask the users to do exercises in a staging branch.

Ask them to:

• Create a vendor bill for a Computer for $2000, make sure the account is a current asset account type.
• Create an asset and link with this vendor bill. Define the depreciation account and the amortization expense account. Confirm the asset and look at the generated draft journal entries.

Reports

Demonstrate how the profit and lost and the balance sheet are working, then ask the users to do exercises in a staging branch.

Ask them to:

• Run the profit and lost for this month and to compare with the previous month
• Run the balance sheet at the end of the previous month

Fiscal Position

Demonstrate how the fiscal position is working, then ask the users to do exercises in a staging branch. I advise you to customize it with the fiscal position they have.

Ask them to:

• Create a new income account specially for a new fiscal position. If you already have an income account called "ABC", ask them to create a new income account called "ABC fiscal position B".
• Create a new tax specially for a new fiscal position with the name TAX 1% and apply a tax at 1%.
• Create a new fiscal position with:
• • A rule to replace the income account ABC by ABC fiscal position B
  • A rule to replace the tax by TAX 1%