Odoo Accounting Module Guide

Odoo accounting module is the most important section of the Odoo ERP which deals with basic accounting to advanced level financial management of a business. It helps in tracking your accounting transactions with 100% accuracy as well as fulfilling all your finance and accounting needs such as generating invoices and payment vouchers, financial reports, bank reconciliations and much more. Standard application of the Odoo accounting covers end-to-end Procure-to-Pay and Order-to-Cash process. The application can easily be integrated with all other modules e.g. Odoo ecommerce module, project management module, etc. to collect data and enable accurate reporting of financial and other information.

Accounting Functions and Features

Accounts Receivable

• Generating and issuing invoices
• Offering cash discounts
• Terms and conditions regarding payment method and timing
• Refund and Credit notes
• Deferred revenue
• Option of adding QR codes to invoices
• And many more

Customer Payments

• Different methods for recording a payment
• Online payment from the customer against a particular invoice
• Register payments made by customers through cheques
• Batch payments: batch deposits (cash, cheques, etc.)
• Follow up on customer invoices
• And many more

Vendor Bills

• Manage bills of vendors
• Record purchase vouchers prepared on the basis of vendor bills
• Prepayments and accrued expenses
• Recording and management of fixed assets and other non-current assets
• Digitize bills of vendors through the help of optical character recognition
• And a lot more

Vendor Payments

• Pay by cheques
• Pay multiple bills at the same time
• Forecasting future bills on the basis of previous trends

Taxes

• Manage all types of taxes
• Manage prices for B2C (tax included) and B2B (tax excluded)
• Fiscal positions (account and tax mapping)
• Manage withholding taxes
• Tax return (VAT declaration)

Cash and Bank

• Setting up bank and cash accounts
• Manage banks in multiple currencies
• Create and manage a register for keeping record of cash receipt and payments
• Bank reconciliations
• Different reconciliation models
• Bank Synchronization
• Salt edge and ponto as bank synchronization providers
• Transfer funds among banks through the use of wire transfer

Reporting

• Main reports are available such as balance sheet, profit or loss, statement of cash flows, statement of changes in equity, receivable aged analysis, payable aged analysis, etc.
• Option is available to create customized reports
• Manage a financial budget
• Manage financial years
• Close fiscal years in Odoo

Others

Analytic

• Analytic account option is available for users
• Track cost of human resources with the help of attendance sheets
• Track cost of expenses and purchases

Multicurrency

• Manage invoice generation and payment of invoices in different currencies
• Record rates of foreign exchange at payments

Inventory

• Inventory valuation configuration
• Impact on the inventory valuation when goods are returned

Some Unique Features of Odoo Accounting

Partner Credit Limit

This feature within the accounting module allows its users to establish a limit regarding how much credit can be given to clients. Once a limit on credit is set for a client then the module allows the creation of a sales invoice for that partner/client only until the point where the total outstanding receivable balance of the partner/client does not exceed its credit limit.  If the creation of a new sales order for a client results in the credit limit of that client being exceeded then in such a scenario accountant’s or any other relevant approval will be needed to process the transaction in the system. 

Analytic Accounts 

In order to successfully integrate your entity’s processes and procedures, you need a common referring point for each document, service or user. Analytic accounts offer such standardization within the Odoo accounting.

Analytic accounts are also known as cost or management accounts and are often referred to as the primary foundation for strategic business decisions. These accounts allow users to analyze company’s accounting results in order to increase efficiency and effectiveness as well as reduce time consumption of various business operations. This leads to improved business procedures and processes and reduced risks.

Tax Cloud 

The integration of Tax Cloud allows you to determine tax for each client/partner as well as allows you to keep track of products and services on which tax is not applicable.

Gift Cards and their Accounting Treatment 

Sale and redemption of gift cards is very popular in many countries around the world. It is not available in the standard version of the accounting module. However, this feature can be added to Odoo accounting module through customization. This feature, if added, in the standard accounting module enables the functionality of recognizing revenue on selling a gift card. The sale of the gift card will be recorded at the time of its redemption.

Payment Currency Freeze 

This feature in the accounting module allows the users to make payments in the currency they have selected. The standard accounting module of Odoo enforces its users to make payments in the company currency and if you choose to process any payment in a currency other than the company currency then the system will determine and calculate foreign exchange difference.

Odoo Invoicing

It is a standalone app for creating customer invoices and managing payments received from customers. Some of its features are as follows:

Create Customer Invoices: Odoo invoicing allows you to generate professional invoices in seconds.

Address Autocomplete: Enter a registered VAT number and the ERP will autocomplete the name as well as the address of the customer (for now this option is only available in Europe).

Issue Refunds: Create credit notes and manage reimbursements.

Manage Vendor Invoices: Record vendor invoices in the ERP solution as well as manage vendor payments.

Include Incoterms®: This can be used to ensure that you have the right terms and conditions on your contracts with third parties.

Customer Payments: Manage customer payments as well as follow-up on the outstanding customer receivable balances from a single simplified interface.

Print Invoices: The ERP solution provides its users with the option to print a hard copy of their invoices to send to customers.

Multi-company Rules: Automatically mirror orders and invoices in multi-company setup.

Handle Recurring Invoices: Set the frequency of customer invoicing for services and products as per contract specifications.            

Push Digits Chartered Accountants is one of the leading Odoo developers in Dubai with Odoo implementation and consulting experience of a wide range of industries. From real estate to trading to service industry, we have the required resources and technical skills to transform the system and its source code to match your needs. Contact us to find out more.