Odoo 17 has a very strong accounting module that works really well with other main features of the system. This close connection helps make financial tasks easier and ensures that data is accurate throughout your business. Millions of businesses of different sizes and industries have already invested in Odoo ERP development to streamline their processes, mainly their accounting tasks.
Features of Odoo 17 Accounting Software
The accounting module is designed to handle all your financial and accounting activities, such as managing money you are owed (accounts receivable), money you owe (accounts payable), your bank balances, and your fixed assets. It includes different tools to help with tasks like checking double-entry accounting, supporting multiple currencies, valuing invoices, and more. This makes it easier to keep track of your business’s finances accurately and efficiently.
Customers Menu:
- Invoice: You can create an invoice by choosing the customer, setting the reference, invoice date, payment terms, journal, and company. Then, select the product and finalise the invoice.
- Credit Notes: These are documents issued by you (the vendor) to your customer, usually for returns or corrections on a previous invoice.
- Receipts: This option lets you record the payments you receive from customers and update the accounting records.
- Payments: Here, you can choose the type of payment for your customer, like cash, check, or credit.
- Follow-up Reports: In many businesses, sales and purchases are often on credit. It’s important to collect these payments on time. Odoo ERP helps you identify customers with overdue payments and provides reports to follow up with them.
- Products: You can create new products or view existing ones that you sell.
- Customers: You can add new customers or view details of existing ones.
Vendors Menu:
- Bill: You can create a new bill from a vendor, including details like the reference number, bill date, and more.
- Refund: A refund is money returned from the original recipient (vendor) to the original payer (you).
- Receipts: This is where you record receipts from vendors.
- Payments: You can record payments made to your vendors.
- Products: You can add new products or view the ones you purchase from vendors.
- Vendors: You can add new vendors or view details of existing ones.
Accounting Menu:
Miscellaneous:
- Journal Entries: This section includes all the financial records for every transaction within the company.
Journals:
- Sales: Here, you can see all the records related to your sales, including details about the partners, invoice numbers, products in each invoice, and the amounts debited or credited.
- Purchases: This section allows you to create and view all the purchase records for your organisation.
- Bank & Cash: This displays all the records related to your bank and cash transactions.
Ledgers:
- General Ledger: This shows all the financial transactions in your organisation, detailing every analysed account.
- Partner Ledger: This ledger displays the current open balances with any customer or vendor.
Management:
- Automatic Transfer: Here, you can set up automatic transfers for regular expenses, like monthly rent or yearly liabilities.
- Assets: This helps you keep track of your fixed assets, such as machinery, land, and buildings.
- Deferred Revenue: This section handles payments received in advance, which the company hasn’t yet earned.
- Deferred Expenses: This is for expenses that the company has paid in advance but hasn’t yet used.
Action:
- Reconciliation: This feature allows you to match payments to the corresponding invoices, ensuring that everything is correctly recorded.
Reporting Menu:
Generic Statements:
- Profit and Loss: This report shows all your income and expenses over a certain period, giving you a clear picture of your profitability.
- Balance Sheet: This statement shows what your company owns (assets), what it owes (liabilities), and the value left for shareholders (equity) at a specific point in time.
- Executive Summary: This is a summary of your business plans and key financial reports, providing a quick overview of your company’s financial health.
- Cash Flow Statement: This report explains how changes in your balance sheet and income affect your cash flow. It shows how money moves in and out of your business.
Partners Reports:
- Partner Ledger: Here, you can see all the journal entries that have been posted, organised by partner (customer or vendor).
- Aged Receivables: This report helps you check the financial health of your customers. It categorises receivables (money owed to you) based on how long they have been outstanding, helping you track overdue invoices.
- Aged Payables: This report reminds you which invoices you owe are overdue for payment, helping you manage your payables efficiently.
Audit Reports: This includes several detailed financial reports:
- General Ledger: A comprehensive list of all your financial transactions.
- Trial Balance: A summary that ensures all your credits and debits are balanced.
- Consolidated Journals: A combined report of all your journals.
- Tax Reports: Details of all your tax transactions and liabilities.
- Journal Audit: A review of your journal entries to ensure accuracy and compliance.
- Assets Report: A detailed report on your company’s fixed assets.
Configurations Menu:
Invoicing:
- Payment Terms: Set the conditions under which your customers should pay their invoices, such as due dates and installment plans.
- Taxes: Manage the various taxes applicable to your sales and purchases.
- Fiscal Positions: Adjust taxes and accounts for specific customers or regions.
- Journal: Configure different journals for recording transactions.
- Follow-up Level: Set up reminders and actions for following up on overdue invoices.
Payments:
- Add a Bank Account: Set up new bank accounts for handling payments.
- Bank Accounts: Manage and view all your existing bank accounts.
- Saved Payment Data: Store and manage payment information for future transactions.
- Payment Icons: Customise icons representing different payment methods.
- Payment Transactions: Track and manage all your payment transactions.
Accounting:
- Chart of Accounts: Define and manage the list of all accounts used in your company’s general ledger.
- Journal Groups: Organise different journals into groups for better management.
- Product Categories: Categorse products for accounting purposes.
- Reconciliation Models: Set up models to simplify the process of matching payments with invoices.
- Account Tags: Create tags to categorise and filter accounts.
- Account Group: Group similar accounts together for reporting purposes.
- Asset Models: Manage models for tracking your fixed assets like machinery and buildings.
- Deferred Revenue Models: Set up models for managing revenue that is received in advance.
- Deferred Expense Models: Set up models for managing expenses that are paid in advance.
Management:
- Tax Report: Generate and manage reports for all tax-related transactions.
- Financial Reports: Create and manage various financial reports to monitor your company’s financial health.
Some more exceptional features of the Odoo ERP 17 Accounting module are:
- Auto extract PDFs only: This feature focuses on automatically prioritising PDF attachments when creating invoices from emails for both sales and purchase records. It’s a highly requested feature in Odoo’s accounting system.
- Auto-reconcile feature: A new tool has been introduced to automatically match transactions. This makes Odoo ERP more efficient for accounting and bookkeeping.
- Bank reconciliation layout: The bank reconciliation interface has been updated for better clarity. You can now easily edit, delete, and print bank statements directly from the widget. Dashboard links and audit features have also been improved.
- Bank statement PDF report layout: The design of the bank statement PDF reports has been cleaned up for easier analysis, making Odoo a top choice for accounting software.
- Bills artificial intelligence: Odoo now always predicts taxes and accounts on vendor bill lines using AI. Product prediction can be turned on in the settings, making Odoo a standout in accounting software.
- Branches management: You can now manage multiple business units or branches through a multi-company hierarchy, making Odoo easy to use for complex businesses.
- Credit and debit note buttons: The invoice action buttons have been simplified. The debit notes option has been moved to the action menu. Odoo is also highly customisable and is one of the top cloud-based accounting software options.
- Cross analytic: You can input data on multiple analytic plans for cross-reporting, a crucial feature for detailed accounting and bookkeeping.
- Credit limit improvement: Confirmed and uninvoiced sales orders are now included in a partner’s total receivables. This helps better manage credit limits by considering all pending amounts.
- Revenue report: The report allows you to audit deferred amounts, showing any differences between theoretical and actual entries, indicating if manual adjustments are needed.
- Deferred management: Managing deferred revenues and expenses is now separated from assets, allowing you to create them without pre-setting deferred models. This makes Odoo even more versatile.
- Delivery date: Invoices now have a standard field for the delivery date, enhancing Odoo’s functionality as a top accounting software.
- Down payment and POS: The tax and account details on down payment invoices remain consistent, whether they are created through the Point of Sale system or the Sales App.
- Down payments tax breakdown: The tax breakdown on down payment invoices now aligns with the original sales order, ensuring accuracy in financial records.
Now let’s see how Odoo 17 connects its Accounting module with other module of the ERP:
1. Manufacturing:
- Production Orders: When you create a production order, Odoo’s Accounting module automatically records the use of raw materials and work-in-progress.
- Bills of Materials (BOMs): The costs of materials listed in the BOM are factored into the production order’s cost calculations, affecting the accounting records.
- Manufacturing Completed: When production orders are completed, journal entries are made for finished goods inventory and production overhead costs.
2. Inventory:
- Purchase Orders: Confirming a purchase order creates a record of what you owe (accounts payable). Receiving goods adds them to inventory and updates accounts payable.
- Delivery Orders: When you move goods out of inventory for sales or internal use, journal entries are made reflecting the change in inventory and related costs.
- Inventory Adjustments: Any changes to inventory levels, like write-offs or adjustments, are recorded in the accounting module.
3. Payroll:
- Salary Calculations: Payroll processing generates entries for salaries, deductions, and employer contributions.
- Payslips: Employee payslips detail earnings and deductions, which are recorded in the accounting module.
4. Sales:
- Sales Orders: Confirmed sales orders create entries for customer receivables and deferred revenue.
- Delivery Orders: When goods are delivered against sales orders, entries reflect changes in inventory and customer receivables.
- Invoices: Creating invoices records sales revenue and customer receivables. Customer payments update bank and receivable accounts.
5. Purchase:
- Purchase Orders: Confirmed purchase orders generate entries for accounts payable. Receiving goods updates inventory and accounts payable.
- Bills: Recording bills from vendors updates accounts payable and relevant expense accounts. Paying bills updates bank and payable accounts.
How These Links Create Journal Entries?
- Each action in these modules triggers predefined accounting rules in Odoo ERP.
- These rules automatically generate journal entries, updating the relevant accounts based on Odoo’s chart of accounts.
Benefits of Odoo Accounting Integration:
- Real-time Data: Accounting records reflect real-time data from all connected modules, reducing manual data entry and errors.
- Accurate Reporting: Automated financial reports provide a clear view of your financial health.
- Improved Efficiency: Streamlined workflows and automated entries save time and resources for your accounting team.
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Wrapping Up
Odoo 17’s Accounting module serves as the central hub, integrating seamlessly with other functions to automate financial processes, ensure accuracy, and support informed decision-making.
Being an official Odoo gold partner in Australia, we at Envertis, ensure to offer comprehensive Odoo ERP development services for various business needs. We have successfully completed numerous ERP projects for startups and small-to-medium businesses worldwide. For more information, contact us at sales@envertis.com
