diff --git a/content/applications/finance/accounting/bank.rst b/content/applications/finance/accounting/bank.rst index fbee284dd..c23f7fdb4 100644 --- a/content/applications/finance/accounting/bank.rst +++ b/content/applications/finance/accounting/bank.rst @@ -85,6 +85,8 @@ You can edit the accounting information and bank account number according to you - :doc:`get_started/multi_currency` - :doc:`bank/transactions` +.. _bank_accounts/suspense: + Suspense account ---------------- diff --git a/content/applications/finance/accounting/payments.rst b/content/applications/finance/accounting/payments.rst index ecf78141d..2496a64a4 100644 --- a/content/applications/finance/accounting/payments.rst +++ b/content/applications/finance/accounting/payments.rst @@ -91,7 +91,7 @@ Batch Payment`. - :doc:`payments/batch` - :doc:`payments/batch_sdd` -.. _payments-matching: +.. _payments/matching: Payments matching ----------------- diff --git a/content/applications/finance/accounting/reporting.rst b/content/applications/finance/accounting/reporting.rst index 2f73bd40b..a25a3f5c6 100644 --- a/content/applications/finance/accounting/reporting.rst +++ b/content/applications/finance/accounting/reporting.rst @@ -30,6 +30,8 @@ you want to compare the chosen time period with. You can choose up to 12 periods back from the date of the report if you don't want to use the default **Previous 1 Period** option. +.. _reporting/balance-sheet: + Balance Sheet ------------- @@ -103,6 +105,8 @@ occurred during a certain period of time. .. image:: reporting/main_reports05.png +.. _reporting/aged-payable: + Aged Payable ------------ @@ -112,6 +116,8 @@ have gone unpaid. .. image:: reporting/main_reports02.png +.. _reporting/aged-receivable: + Aged Receivable --------------- @@ -129,6 +135,8 @@ operating, investing and financing activities. .. image:: reporting/main_reports03.png +.. _reporting/tax-report: + Tax Report ---------- diff --git a/content/applications/finance/accounting/reporting/year_end.rst b/content/applications/finance/accounting/reporting/year_end.rst index 9e21aa539..2eccb8c60 100644 --- a/content/applications/finance/accounting/reporting/year_end.rst +++ b/content/applications/finance/accounting/reporting/year_end.rst @@ -2,115 +2,111 @@ Year-end closing ================ -Before going ahead with closing a fiscal year, there are a few steps one -should typically take to ensure that your accounting is correct, up to -date, and accurate: - -- Make sure you have fully reconciled your **bank account(s)** up to - year end and confirm that your ending book balances agree with - your bank statement balances. - -- Verify that all **customer invoices** have been entered and approved. - -- Confirm that you have entered and agreed all **vendor bills**. - -- Validate all **expenses**, ensuring their accuracy. - -- Corroborate that all **received payments** have been entered and - recorded accurately. +Year-end closing is vital for maintaining financial accuracy, complying with regulations, making +informed decisions, and ensuring transparency in reporting. .. _year-end/fiscal-years: -Manage fiscal years -=================== +Fiscal years +============ -In most cases, the fiscal years last 12 months. If it is your case, you -just have to define what is the last day of your fiscal year in the -accounting settings. By default, it is set on the 31st December. +By default, the fiscal year is set to last 12 months and end on December 31st. However, its duration +and end date can vary due to cultural, administrative, and economic considerations. -However, there might be some exceptions. For example, if it is the first -fiscal year of your business, it could last more or less than 12 months. -In this case, some additional configuration is required. +To modify these values, go to :menuselection:`Accounting --> Configuration --> Settings`. Under the +:guilabel:`Fiscal Periods` section, change the :guilabel:`Last Day` field if necessary. -Go to :menuselection:`accounting --> configuration --> settings` and activate -the fiscal years. - -You can then configure your fiscal years in -:menuselection:`accounting --> configuration --> fiscal years`. +If the period lasts *more* than or *less* than 12 months, enable :guilabel:`Fiscal Years` and +:guilabel:`Save`. Go back to the :guilabel:`Fiscal Periods` section and click :guilabel:`➜ Fiscal +Years`. From there, click :guilabel:`Create`, give it a :guilabel:`Name`, and both a +:guilabel:`Start Date` and :guilabel:`End Date`. .. note:: - You only have to create fiscal years if they last more or less - than 12 months. + Once the set fiscal period is over, Odoo automatically reverts to the default periodicity, taking + into account the value specified in the :guilabel:`Last Day` field. .. _year-end/checklist: Year-end checklist ================== -- Run a **Tax report**, and verify that your tax information is correct. +Before closure +-------------- -- Reconcile all accounts on your **Balance Sheet**: +Before closing a fiscal year, ensure first everything is accurate and up-to-date: - - Agree your bank balances in Odoo against your actual bank balances - on your statements. Utilize the **Bank Reconciliation** report to - assist with this. +- Make sure all bank accounts are fully :doc:`reconciled <../bank/reconciliation>` up to year-end, + and confirm that the ending book balances match the bank statement balances. +- Verify that all :doc:`customer invoices <../customer_invoices>` have been entered and + approved and that there are no draft invoices. +- Confirm that all :doc:`vendor bills <../vendor_bills>` have been entered and agreed upon. +- Validate all :doc:`expenses <../../expenses>`, ensuring their accuracy. +- Corroborate that all :doc:`received payments <../payments>` have been encoded and recorded + accurately. +- Close all :ref:`suspense accounts `. +- Book all :doc:`depreciation <../vendor_bills/assets>` and :doc:`deferred revenue + <../customer_invoices/deferred_revenues>` entries. - - Reconcile all transactions in your cash and bank accounts by - running your **Aged Receivables** and **Aged Payables** reports. +Closing a fiscal year +--------------------- - - Audit your accounts, being sure to fully understand the - transactions affecting them and the nature of the - transactions, making sure to include loans and fixed assets. +Then, to close the fiscal year: -- Run the optional **Payments Matching** feature, under the **More** - dropdown on the dashboard, validating any open **Vendor Bills** and - **Customer Invoices** with their payments. This step is optional, - however it may assist the year-end process if all outstanding - payments and invoices are reconciled, and could lead finding - errors or mistakes in the system. +- Run a :ref:`tax report `, and verify that all tax information is correct. +- Reconcile all accounts on the :ref:`balance sheet `: -- Your accountant/bookkeeper will likely verify your balance sheet - items and book entries for: + - Update the bank balances in Odoo according to the actual balances found on the bank statements. + - Reconcile all transactions in the cash and bank accounts by running the :ref:`aged receivables + ` and :ref:`aged payables ` reports. + - Audit all accounts, being sure to fully understand all transactions and their nature, making + sure to include loans and fixed assets. + - Optionally, run :ref:`payments matching ` to validate any open vendor bills + and customer invoices with their payments. While this step is optional, it could assist the + year-end closing process if all outstanding payments and invoices are reconciled, potentially + finding errors or mistakes in the system. - - Year-end manual adjustments, using the **Adviser Journal Entries** - menu (For example, the **Current Year Earnings** and **Retained - Earnings** reports). +Next, the accountant likely verifies balance sheet items and book entries for: - - **Work in Progress**. + - year-end manual adjustments, + - work in progress, + - depreciation journal entries, + - loans, + - tax adjustments, + - etc. - - **Depreciation Journal Entries**. +If the accountant is going through the year-end audit, they may want to have paper copies of all +balance sheet items (such as loans, bank accounts, prepayments, sales tax statements, etc.) to +compare these with the balances in Odoo. - - **Loans**. +.. tip:: + During this process, it is good practice to set a :guilabel:`Journal Entries Lock Date` to the + last day (inclusive) of the preceding fiscal year by going to :menuselection:`Accounting --> + Accounting --> Lock Dates`. This way, the accountant can be confident that nobody changes the + transactions while auditing the books. Users from the *accountant* access group can still create + and modify entries. - - **Tax adjustments**. +Current year's earnings +~~~~~~~~~~~~~~~~~~~~~~~ -If your accountant/bookkeeper is going through end of the year auditing, -they may want to have paper copies of all balance sheet items (such as -loans, bank accounts, prepayments, sales tax statements, etc...) to -agree these against your Odoo balances. +Odoo uses a unique account type called **current year's earnings** to display the amount difference +between the **income** and **expenses** accounts. -During this process, it is good practice to set the **Lock date for -Non-Advisers** to the last day of the preceding financial year, which is -set under the accounting configuration. This way, the accountant can be -confident that nobody is changing the previous year transactions -while auditing the books. +.. note:: + The chart of accounts can only contain one account of this type. By default, it is a 999999 + account named :guilabel:`Undistributed Profits/Losses`. -.. image:: year_end/close_fiscal_year01.png +To allocate the current year's earnings, create a miscellaneous entry to book them to any equity +account. Once done, confirm whether or not the current year's earnings in the **balance sheet** is +correctly reporting a balance of zero. If that is the case, set an :guilabel:`All Users Lock Date` +to the last day of the fiscal year by going to :menuselection:`Accounting --> Accounting --> Lock +Dates`. -.. _year-end/closing: +.. warning:: + Setting an :guilabel:`All Users Lock Date` is **irreversible** and cannot be removed. -Closing the fiscal year -======================= - -In Odoo there is no need to do a specific year end closing entry in order to -close out income statement accounts. The reports are created in -real-time, meaning that the **Income statement** corresponds directly with -the year-end date you specify in Odoo. Therefore, any time you generate -the **Income Statement**, the beginning date will correspond with the -beginning of the **Fiscal Year** and the account balances will all be 0. - -Once the accountant/bookkeeper has created the journal entry to allocate -the **Current Year Earnings**, you should set the **Lock Date** to the last day -of the fiscal year. Making sure that before doing so, you confirm -whether or not the current year earnings in the **Balance Sheet** is -correctly reporting a 0 balance. +.. note:: + A specific year-end closing entry is **optional** in order to close out the **profit and loss + statement**. The reports are created in real-time, meaning that the profit and loss statement + corresponds directly with the year-end date specified in Odoo. Therefore, any time the **income + statement** is generated, the beginning date corresponds with the beginning of the **fiscal + year** and all account balances should equal zero. diff --git a/content/applications/finance/accounting/reporting/year_end/close_fiscal_year01.png b/content/applications/finance/accounting/reporting/year_end/close_fiscal_year01.png deleted file mode 100644 index b9cd47c6e..000000000 Binary files a/content/applications/finance/accounting/reporting/year_end/close_fiscal_year01.png and /dev/null differ diff --git a/content/applications/finance/accounting/vendor_bills.rst b/content/applications/finance/accounting/vendor_bills.rst index e53f8be7d..ce1f2d73e 100644 --- a/content/applications/finance/accounting/vendor_bills.rst +++ b/content/applications/finance/accounting/vendor_bills.rst @@ -37,7 +37,7 @@ appropriately completed: - :guilabel:`Vendor`: Odoo automatically fills some information based on the vendor's registered information, previous purchase orders, or bills. - :guilabel:`Bill Reference`: add the sales order reference provided by the vendor and is used to do - the :ref:`matching ` when you receive the products. + the :ref:`matching ` when you receive the products. - :guilabel:`Auto-Complete`: select a past bill/purchase order to automatically complete the document. The :guilabel:`Vendor` field should be completed prior to completing this field. - :guilabel:`Bill Date`: is the issuance date of the document.