diff --git a/content/applications/finance/accounting/payments/checks.rst b/content/applications/finance/accounting/payments/checks.rst index d1aff4a57..3c263a4f9 100644 --- a/content/applications/finance/accounting/payments/checks.rst +++ b/content/applications/finance/accounting/payments/checks.rst @@ -2,128 +2,122 @@ Checks ====== -There are two ways to handle payments received by checks. Odoo support -both approaches so that you can use the one that better fits your -habits. +There are two ways to handle payments received by checks in Odoo, either by using :ref:`outstanding +accounts ` or by :ref:`bypassing the reconciliation process +`. -1. **Undeposited Funds:** - once you receive the check, you record a payment - by check on the invoice. (using a Check journal and posted on the - Undeposited Fund account) Then, once the check arrives in your - bank account, move money from Undeposited Funds to your bank - account. +**Using outstanding accounts is recommended**, as your bank account balance stays accurate by taking +into account checks yet to be cashed. -2. **One journal entry only:** - once your receive the check, you record a - payment on your bank, paid by check, without going through the - **Undeposited Funds**. Once you process your bank statement, you do - the matching with your bank feed and the check payment, without - creating a dedicated journal entry. +.. note:: + Both methods produce the same data in your accounting at the end of the process. But if you + have checks that have not been cashed in, the **Outstanding Account** method reports these + checks in the **Outstanding Receipts** account. However, funds appear in your bank account + whether or not they are reconciled, as the bank value is reflected at the moment of the bank + statement. -We recommend the first approach as it is more accurate (your bank -account balance is accurate, taking into accounts checks that have not -been cashed yet). Both approaches require the same effort. +.. seealso:: + * :ref:`Outstanding accounts ` + * :ref:`Bank reconciliation ` -Even if the first method is cleaner, Odoo support the second approach -because some accountants are used to it (quickbooks and peachtree -users). +.. _checks/outstanding-account: -.. Note:: - You may have a look at the *Deposit Ticket feature* if you deposit - several checks to your bank accounts in batch. +Method 1: Outstanding account +============================= -Option 1: Undeposited Funds -=========================== +When you receive a check, you :doc:`record a payment <../bank/reconciliation>` by check on the +invoice. Then, when your bank account is credited with the check's amount, you reconcile the payment +and statement to move the amount from the **Outstanding Receipt** account to the **Bank** account. -Configuration -------------- +.. tip:: + You can create a new payment method named *Checks* if you would like to identify such payments + quickly. To do so, go to :menuselection:`Accounting --> Configuration --> Journals --> Bank`, + click the :guilabel:`Incoming Payments` tab, and :guilabel:`Add a line`. As :guilabel:`Payment + Method`, select :guilabel:`Manual`, and enter `Checks` as name. -- Create a journal **Checks** +.. _checks/reconciliation-bypass: -- Set **Undeposited Checks** as a default credit/debit account +Method 2: Reconciliation bypass +=============================== -- Set the bank account related to this journal as **Allow Reconciliation** +When you receive a check, you :doc:`record a payment <../bank/reconciliation>` on the related +invoice. The amount is then moved from the **Account Receivable** to the **Bank** account, bypassing +the reconciliation and creating only **one journal entry**. -From check payments to bank statements --------------------------------------- +To do so, you *must* follow the following setup. Go to :menuselection:`Accounting --> Configuration +--> Journals --> Bank`. Click the :guilabel:`Incoming Payments` tab and then :guilabel:`Add a line`, +select :guilabel:`Manual` as :guilabel:`Payment Method`, and enter `Checks` as :guilabel:`Name`. +Click the toggle menu button, tick :guilabel:`Outstanding Receipts accounts`, and in the +:guilabel:`Outstanding Receipts accounts` column, and set the :guilabel:`Bank` account for the +**Checks** payment method. -The first way to handle checks is to create a check journal. Thus, -checks become a payment method in itself and you will record two -transactions. +.. image:: checks/outstanding-payment-accounts.png + :alt: Bypass the Outstanding Receipts account using the Bank account. -Once you receive a customer check, go to the related invoice and click -on **Register Payment**. Fill in the information about the payment: +Payment registration +==================== -- Payment method: Check Journal (that you configured with the debit and - credit default accounts as **Undeposited Funds**) +.. note:: + By default, there are two ways to register payments made by check: -- Memo: write the Check number + - **Manual**: for single checks; + - **Batch**: for multiple checks at once. -.. image:: checks/check02.png + This documentation focuses on **single-check** payments. For **batch deposits**, see :doc:`the + batch payments documentation `. -This operation will produce the following journal entry: +Once you receive a customer check, go to the related invoice (:menuselection:`Accounting --> +Customer --> Invoices)`, and click :guilabel:`Register Payment`. Fill in the payment information: + +- :guilabel:`Journal: Bank`; +- :guilabel:`Payment method`: :guilabel:`Manual` (or **Checks** if you have created a specific + payment method); +- :guilabel:`Memo`: enter the check number; +- Click :guilabel:`Create Payment`. + +.. image:: checks/payment-checks.png + :alt: Check payment info + +The generated journal entries are different depending on the payment registration method chosen. + +Journal entries +=============== + +Outstanding account +------------------- + +The invoice is marked as :guilabel:`In Payment` as soon as you record the payment. This operation +produces the following **journal entry**: +----------------------+-------------------+----------+----------+ | Account | Statement Match | Debit | Credit | +======================+===================+==========+==========+ | Account Receivable | | | 100.00 | +----------------------+-------------------+----------+----------+ -| Undeposited Funds | | 100.00 | | +| Outstanding Receipts | | 100.00 | | +----------------------+-------------------+----------+----------+ -The invoice is marked as paid as soon as you record the check. - -Then, once you get the bank statements, you will match this statement -with the check that is in Undeposited Funds. +Then, once you receive the bank statements, match this statement with the check of the **Outstanding +Receipts** account. This produces the following **journal entry**: +---------------------+-------------------+----------+----------+ | Account | Statement Match | Debit | Credit | +=====================+===================+==========+==========+ -| Undeposited Funds | X | | 100.00 | +| Outstanding Receipts| X | | 100.00 | +---------------------+-------------------+----------+----------+ | Bank | | 100.00 | | +---------------------+-------------------+----------+----------+ +If you use this approach to manage received checks, you get the list of checks that have not been +cashed in the **Outstanding Receipt** account (accessible, for example, from the general ledger). -If you use this approach to manage received checks, you get the list of -checks that have not been cashed in the **Undeposit Funds** account -(accessible, for example, from the general ledger). +Reconciliation bypass +--------------------- -.. Note:: - Both methods will produce the same data in your accounting at the - end of the process. But, if you have checks that have not been cashed, - this one is cleaner because those checks have not been reported yet on - your bank account. +The invoice is marked as :guilabel:`Paid` as soon as you record the check. -Option 2: One journal entry only -================================ - -Configuration -------------- - -These is nothing to configure if you plan to manage your checks using -this method. - -From check payments to bank statements --------------------------------------- - -Once you receive a customer check, go to the related invoice and click -on **Register Payment**. Fill in the information about the payment: - -- **Payment method:** the bank that will be used for the deposit - -- Memo: write the check number - -.. image:: checks/check03.png - -The invoice is marked as paid as soon as you record the check. - -Once you will receive the bank statements, you will do the matching with -the statement and this actual payment. (technically: point this payment -and relate it to the statement line) - -With this approach, you will get the following journal entry in your -books: +With this approach, you bypass the use of **outstanding accounts**, effectively getting only one +journal entry in your books and bypassing the reconciliation: +----------------------+-------------------+----------+----------+ | Account | Statement Match | Debit | Credit | @@ -132,17 +126,3 @@ books: +----------------------+-------------------+----------+----------+ | Bank | | 100.00 | | +----------------------+-------------------+----------+----------+ - -.. tip:: - You may also record the payment directly without going on the - customer invoice, using the menu :menuselection:`Sales --> Payments`. This method may - be more convenient if you have a lot of checks to record in a batch but - you will have to reconcile entries afterwards (matching payments with - invoices) - -If you use this approach to manage received checks, you can use the -report **Bank Reconciliation Report** to verify which checks have been -received or paid by the bank. (this report is available from the **More** -option from the Accounting dashboard on the related bank account). - -.. image:: checks/check01.png diff --git a/content/applications/finance/accounting/payments/checks/check01.png b/content/applications/finance/accounting/payments/checks/check01.png deleted file mode 100644 index f2ff0cf0d..000000000 Binary files a/content/applications/finance/accounting/payments/checks/check01.png and /dev/null differ diff --git a/content/applications/finance/accounting/payments/checks/check02.png b/content/applications/finance/accounting/payments/checks/check02.png deleted file mode 100644 index ea8e69a24..000000000 Binary files a/content/applications/finance/accounting/payments/checks/check02.png and /dev/null differ diff --git a/content/applications/finance/accounting/payments/checks/check03.png b/content/applications/finance/accounting/payments/checks/check03.png deleted file mode 100644 index ecc9f48fb..000000000 Binary files a/content/applications/finance/accounting/payments/checks/check03.png and /dev/null differ diff --git a/content/applications/finance/accounting/payments/checks/outstanding-payment-accounts.png b/content/applications/finance/accounting/payments/checks/outstanding-payment-accounts.png new file mode 100644 index 000000000..c686259c5 Binary files /dev/null and b/content/applications/finance/accounting/payments/checks/outstanding-payment-accounts.png differ diff --git a/content/applications/finance/accounting/payments/checks/payment-checks.png b/content/applications/finance/accounting/payments/checks/payment-checks.png new file mode 100644 index 000000000..c63bcf9c4 Binary files /dev/null and b/content/applications/finance/accounting/payments/checks/payment-checks.png differ