From 410949120bd62eed396dd73b4030fb26174a0476 Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?=E2=80=9CChiara?= Date: Thu, 6 Apr 2023 14:25:52 +0000 Subject: [PATCH] [IMP] accounting: improve accounting concept task-2846856 closes odoo/documentation#4517 X-original-commit: 4fc24468e4c389313b36075b2970288ecffa2e14 Signed-off-by: Platteau Xavier (xpl) Signed-off-by: chiaraprattico --- content/applications/finance/accounting.rst | 291 +++++++++++--------- 1 file changed, 166 insertions(+), 125 deletions(-) diff --git a/content/applications/finance/accounting.rst b/content/applications/finance/accounting.rst index 037f492fc..a6b252167 100644 --- a/content/applications/finance/accounting.rst +++ b/content/applications/finance/accounting.rst @@ -55,137 +55,178 @@ accounts, smart matching suggestions, etc. Double-entry bookkeeping ======================== -Odoo automatically creates all the behind-the-scenes journal entries -for each of your accounting transactions: customer invoices, point of -sale order, expenses, inventory moves, etc. +Odoo automatically creates all the underlying journal entries for all accounting transactions (e.g., +customer invoices, vendor bills, point-of-sales orders, expenses, inventory valuations, etc.). -Odoo uses the rules of double-entry bookkeeping system: all journal -entries are automatically balanced (sum of debits = sum of credits). +Odoo uses the double-entry bookkeeping system, whereby every entry needs a corresponding and +opposite counterpart in a different account, with one account debited and the other credited. +It ensures that all transactions are recorded accurately and consistently and that the accounts +always balance. .. seealso:: - - :doc:`Understand Odoo's accounting transactions per document - ` + :doc:`Accounting Cheat Sheet ` -Accrual and Cash Basis Methods -============================== - -Odoo supports both accrual and cash basis reporting. This allows you to -report income / expense at the time transactions occur (i.e., accrual basis), or when -payment is made or received (i.e., cash basis). - -Multi-companies -=============== - -Odoo allows one to manage several companies within the same database. Each -company has its own chart of accounts and rules. You can get -consolidation reports following your consolidation rules. - -Users can access several companies but always work in one company at a -time. - -Multi-currencies -================ - -Every transaction is recorded in the default currency of the -company. For transactions occurring in another currency, Odoo stores -both the value in the currency of the company and the value in the -currency of the transaction. Odoo can generate currencies gains and -losses after the reconciliation of the journal items. - -Currency rates are updated once a day using a yahoo.com online -web-service. - -International Standards -======================= - -Odoo accounting supports more than 50 countries. The Odoo core -accounting implements accounting standards that are common to all -countries. Specific modules exist per country for the -specificities of the country like the chart of accounts, taxes, or -bank interfaces. - -In particular, Odoo's core accounting engine supports: - -* Anglo-Saxon Accounting (U.S., U.K.,, and other English-speaking - countries including Ireland, Canada, Australia, and New Zealand) - where costs of good sold are reported when products are - sold/delivered. -* European accounting where expenses are accounted at the supplier - bill. - -Odoo has modules to comply with IFRS rules. - -Accounts Receivable and Payable -=============================== - -By default, Odoo uses a single account for all account -receivable entries and one for all accounts payable entries. You can -create separate accounts per customers/suppliers, but you don't need -to. - -As transactions are associated to customers or suppliers, you get -reports to perform analysis per customer/supplier such as the customer -statement, revenues per customers, aged receivable/payables, ... - -Wide range of financial reports -=============================== - -In Odoo, you can generate financial reports in real time. Odoo's -reports range from basic accounting reports to advanced management -reports. Odoo's reports include: - -* Performance reports (such as Profit and Loss, Budget Variance) -* Position reports (such as Balance Sheet, Aged Payables, Aged - Receivables) -* Cash reports (such as Bank Summary) -* Detail reports (such as Trial Balance and General Ledger) -* Management reports (such as Budgets, Executive Summary) - -Odoo's report engine allows you to customize your own report based on -your own formulae. - -Import bank feeds automatically -=============================== - -Bank reconciliation is a process that matches your bank statement -lines, as supplied by the bank, to your accounting transactions in the -general ledger. Odoo makes bank reconciliation easy by frequently -importing bank statement lines from your bank directly into your Odoo -account. This means you can have a daily view of your cashflow without -having to log into your online banking or wait for your paper bank -statements. - -Odoo speeds up bank reconciliation by matching most of your imported -bank statement lines to your accounting transactions. Odoo also -remembers how you've treated other bank statement lines and provides -suggested general ledger transactions. - -Calculate the tax you owe your tax authority -============================================ - -Odoo totals all your accounting transactions for your tax period and -uses these totals to calculate your tax obligation. You can then check -your sales tax by running Odoo's Tax Report. - -Inventory Valuation -=================== - -Odoo support both periodic (manual) and perpetual (automated) -inventory valuations. The available methods are standard price, -average price, LIFO (for countries allowing it) and FIFO. - -.. seealso:: - - :doc:`View impact of the valuation method on your transactions - ` - -Easy retained earnings +Accrual and cash basis ====================== -Retained earnings are the portion of income retained by your -business. Odoo automatically calculates your current year earnings in -real time so no year-end journal or rollover is required. This is -calculated by reporting the profit and loss balance to your balance -sheet report automatically. +Both accrual and cash basis accounting are supported in Odoo. This allows reporting income and +expense either when the transaction occurs (accrual basis) or when the payment is made or received +(cash basis). + +.. seealso:: + :doc:`Cash basis ` + +Multi-company +============= + +Several companies can be managed within the same database. Each company has its :doc:`chart of +accounts `, which is also useful to generate consolidation +reports. Users can access several companies but can only work on a single company's accounting at a +time. + +Multi-currency environment +========================== + +A :doc:`multi-currency ` environment with an automated +exchange rate to ease international transactions is available in Odoo. Every transaction is recorded +in the company's default currency; for transactions occurring in another currency, Odoo stores both +the value in the company's currency and the transactions' currency value. Odoo generates currency +gains and losses after reconciling the journal items. + +.. seealso:: + :doc:`Manage a bank in a foreign currency ` + +International standards +======================= + +Odoo Accounting supports more than 70 countries. It provides the central standards and mechanisms +common to all nations, and thanks to country-specific modules, local requirements are fulfilled. +Fiscal positions exist to address regional specificities like the chart of accounts, taxes, or any +other requirements. + +.. seealso:: + :doc:`Fiscal localization packages ` + +Accounts receivable and payable +=============================== + +By default, there is a single account for the account receivable entries and one for the account +payable entries. As transactions are linked to your **contacts**, you can run a report per customer, +vendor, or supplier. + +The **Partner Ledger** report displays the balance of your customers and suppliers. It is available +by going to :menuselection:`Accounting --> Reporting --> Partner Ledger`. + +Reporting +========= + +The following financial :doc:`reports ` are available and updated in +real-time: + ++-----------------------------------------------+ +| Financial reports | ++============+==================================+ +| Statement | Balance sheet | +| +----------------------------------+ +| | Profit and loss | +| +----------------------------------+ +| | Cash flow statement | +| +----------------------------------+ +| | Tax report | +| +----------------------------------+ +| | ES sales list | ++------------+----------------------------------+ +| Audit | General ledger | +| +----------------------------------+ +| | Trial balance | +| +----------------------------------+ +| | Journal report | +| +----------------------------------+ +| | Intrastat report | +| +----------------------------------+ +| | Check register | ++------------+----------------------------------+ +| Partner | Partner ledger | +| +----------------------------------+ +| | Aged receivable | +| +----------------------------------+ +| | Aged payable | ++------------+----------------------------------+ +| Management | Invoice analysis | +| +----------------------------------+ +| | Unrealized currency gains/losses | +| +----------------------------------+ +| | Depreciation schedule | +| +----------------------------------+ +| | Disallowed expenses | +| +----------------------------------+ +| | Budget analysis | +| +----------------------------------+ +| | Product margins | +| +----------------------------------+ +| | 1099 report | ++------------+----------------------------------+ + +.. tip:: + :doc:`Create and customize reports ` with Odoo's report engine. + +Tax report +---------- + +Odoo computes all accounting transactions for the specific tax period and uses these totals to +calculate the tax obligation. + +.. important:: + Once the tax report has been generated for a period, Odoo locks it and prevents the creation of + new journal entries involving VAT. Any correction to customer invoices or vendor bills has to + be recorded in the next period. + +.. note:: + Depending on the country's localization, an XML version of the tax report can be generated to be + uploaded to the VAT platform of the relevant taxation authority. + +Bank synchronization +==================== + +The bank synchronization system directly connects with your bank institution to automatically +import all transactions into your database. It gives an overview of your cash flow without logging +into an online banking system or waiting for paper bank statements. + +.. seealso:: + :doc:`Bank synchronization ` + +Inventory valuation +=================== + +Both periodic (manual) and perpetual (automated) inventory valuations are supported in Odoo. The +available methods are standard price, average price, :abbr:`LIFO (Last-In, First-Out)` and +:abbr:`FIFO (First-In, First-Out).` + +.. seealso:: + :doc:`View the impact of the valuation methods on transactions + <../inventory_and_mrp/inventory/management/reporting/inventory_valuation_config>` + +Retained earnings +================= + +Retained earnings are the portion of income retained by a business. Odoo calculates current year +earnings in real-time, so no year-end journal or rollover is required. The profit +and loss balance is automatically reported on the balance sheet report. + +.. seealso:: + :doc:`Accounting Cheat Sheet ` + +Fiduciaries +=========== + +The :guilabel:`Accounting Firms` mode can be activated by going to :menuselection:`Accounting --> +Configuration --> Settings --> Accounting Firms mode`. When enabled: + +- The document's sequence becomes editable on all documents; +- The :guilabel:`Total (tax incl.)` field appears to speed up and control the encoding by automating + line creation with the right account and tax; +- :guilabel:`Invoice Date` and :guilabel:`Bill Date` are pre-filled when encoding a transaction. +- A :guilabel:`Quick encoding` option is available for customer invoices and vendor bills. .. toctree:: :titlesonly: