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    Odoo Accounting: Getting Started with its Basics

    Greetings!

    Welcome to my blogs…

    Odoo is an open source modular based framework. In the previous version of Odoo, it was also known as OpenErp(5 to 7 version) and TinyERP (1 to 4 version). 

    Odoo framework includes multiple solutions like E-Commerce, ERP(Enterprise Resource Planning), CRM, Accounting, Inventory System, POS(Point of Sale), Manufacturing etc.

    To read the introduction of Odoo, you can visit the blog here.

    Key roles of Odoo Solutions

    All of these solutions play very important roles in our current industry. When we talk about Sales, Accounting and Inventory systems then these solutions work as a root pillar for every industry.

    Currently in all over the world, multiple industries are running with the different areas of domains and these industries also manage their revenues which is very helpful for the GDP growth of their respective countries.

    Here accounting plays a very important role to monitor and manage the growth of the industries.

    What is Accounting?

    Accounting is a systematic process to calculate the transactions of the firm to measure the monetary terms and records into the different accounts. Basically, Accounting notified us the profit and loss of the business and also told us the value of assets & liabilities.

    How Accounting Helps Businesses?

    A business is a set up of innovative ideas; apart from that, to maintain and know the highs and lows of a business, Accounting plays a great role. In some easy words, accounting helps you to track the income as well expenditure of your business which directly motivates to improvise the ways to lead your business.

    • You can evaluate the performance of your business 
    • It helps you to ensure that liabilities of your business are appropriately looked
    • You can create a budget and project plan for upcoming years
    • You can also file final statement of your business

    Workflow/Properties of Odoo Accounting

    Know the terms Used in the Accounting Workflow

    TermsDefinition
    IdentificationTo identify the financial transactions like which transactions belong to business and which are not used for business.
    MeasurementMonitoring value of the identified transactions
    RecordingRecord these monitored values to the journals
    ClassificationClassified the journals into different segments
    SummarizationPrepare all transactions into a small summary.
    InterpretationAnalyze all the transactions to check the profit, loss and liabilities.
    CommunicatingCommunicate the financial information to the users.

    Accounting in Odoo

    Odoo manages a great solution which helps to maintain the financial transactions. As I mentioned Odoo is a modular based framework which means for every solution or feature Odoo have different modules. Hence, to manage the transactions of your business Odoo has Accounting for your business.

    Let’s get started with the working of Odoo Accounting!

    Install Accounting in Odoo

    So in order to manage Odoo Accounting first you need to install the “Invoicing” module in Odoo.

    Inside the Odoo app list, you can search for the module “account”(technical name). Then click on the install button to achieve this feature in Odoo.

    NOTE: Odoo Accounting automatically installs the correct Fiscal Localization Package for your company as per the country selected while creating the database. This way, the right accounts, reports, and taxes are ready-to-go.

    How to set-up Odoo Accounting?

    Once the accounting module is successfully installed in your Odoo instance then you can see the Accounting Welcome page. Here, you will get an onboarding banner which will help you to set-up accounting step by step.

    Company Data

    To set-up your Odoo Accounting you can start with filling Company data. So first click on the “Let’s Start” button.

    You can also set-up company data by going through below path,

    Settings → General Settings → Manage Companies

    Or,

    Settings → Users & Companies

    Once you click on the button you will get a form where you can fill the company data like name, address, email, website, taxID etc.

    You need to Fill these details very carefully because these details will be visible in all the Odoo documents like receipts, invoices etc.

    Bank Account

    You can sync all the statements of you bank at Odoo by simply connecting bank from the form

    Incase, you bank is not listed there or you don’t want to connect your bank to the Odoo database then you can simply click on the “Create it” button and create your bank account manually,

    • Name: Enter your bank name
    • Account Number : Enter your bank account number
    • Bank: Select, Create or edit it to configure your bank details
    • Code: This code is your Journal’s short Code. By default, Odoo creates a new Journal with this short Code.
    • Journal: This field is visible only if you have any existing Bank Journal that is not added yet to a bank account. If so, then select the Journal you want to use to record the financial transactions linked to this bank account or create a new one

    Accounting Period

    Add your Fiscal Years opening and closing dates here, it helps to generate reports automatically and your Tax Return Periodicity(monthly, quarterly) in Odoo, also with the help of a reminder to never miss a tax return deadline.

    By default, the opening date is set on the 1st of January and the closing date on the 31st of December, as this is the most common use.

    Chart of Account

    From this menu you can add your accounts to the chart of accounts.

    All the settings related to charts of accounts are available on this page which will help you to review your chart of accounts. To access the specified chart of accounts click on the double arrow button.

    Set-up the Odoo Invoices

    To set-up the Odoo Invoices in your Odoo you can go through the below path,

    Accounting → Customers → Invoices

    Then you will see the invoice welcome page where you will find an onboarding banner.

    Invoicing onboarding banner

    With the help of invoicing onboarding banner you can setup invoicing setting in Odoo,

    Invoice Layout

    Customize your invoice/receipts documents by clicking on the “Customize” button. Then you will see a layout form where you can customize the layout.

    Here you can set up the company logo, Footer for the report, font size, company tagline etc.

    Payment Method

    By clicking on “Set Payments” you can configure the payment methods.

    With the help of Payment method customers can pay for the invoices.

    When you configure a Payment Acquirer with this tool, it also activates the Invoice Online Payment option automatically. It helps users to directly pay online from their Customer Portal.

    Sample Invoice

    By clicking on the “Send Sample” button you can send a sample to check the invoice mail format and also you can make sure that everything is set up correctly.

    Once you are done with all the above mentioned steps then you can feel free to use your Odoo accounting !!

    We Would Love to Hear From You!

    Hope you find the blog informative! Please feel free to share your feedback in the comments below.

    Also, check our store page to go through our Odoo modules.

    If you have any doubt or query then create a ticket or drop us a mail at support@webkul.com

    Thanks for paying attention!!

    🙂 😊

    . . .

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