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* by-application (odoo-wise) grouping * use part of the accounting TOC defined on pad * support for "internal" tocs & fixup front toc * various changes and improvements to extensions May be missing: inherited document banners?
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==========================
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The Accounting behind Odoo
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==========================
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This page summarises the way Odoo deals with typical accounts and
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transactions.
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Double-entry bookkeeping
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========================
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Odoo automatically creates all the behind-the-scenes journal entries
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for each of your accounting transactions: customer invoices, point of
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sale order, expenses, inventory moves, etc.
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Odoo uses the rules of double-entry bookkeeping system: all journal
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entries are automatically balanced (sum of debits = sum of credits).
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→ Understand Odoo’s accounting transactions per document. (link to
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memento)
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Accrual and Cash Basis Methods
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==============================
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Odoo support both accrual and cash basis reporting. This allows you to
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report income / expense at the time transactions occur, or when
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payment is made or received.
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Multi-companies
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===============
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Odoo allows to manage several companies within the same database. Each
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company has its own chart of accounts an rules. You can get
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consolidation reports following your consolidation rules.
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Users can access several companies but always work in one company at a
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time.
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Multi-currencies
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================
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Every transaction is recorded in the default currency of the
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company. For transactions occurring in another currency, Odoo stores
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both the value in the currency of the company and the value in the
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currency of the transaction. Odoo can generate currencies gains and
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losses after the reconciliation of the journal items.
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Currency rates are updated once a day using a yahoo.com online
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web-service.
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International Standards
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=======================
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Odoo accounting support more than 50 countries. The Odoo core
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accounting implement accounting standards that is common to all
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countries and specific modules exists per country for the
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specificities of the country like the chart of accounts, taxes, or
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bank interfaces.
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In particular, Odoo’s core accounting engine support:
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* Anglo-Saxon Accounting (U.S., U.K.,, and other English-speaking
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countries including Ireland, Canada, Australia, and New Zealand)
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where cost of good sold are reported when products are
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sold/delivered.
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* European accounting where expenses are accounted at the supplier
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bill.
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* Storno accounting (italy) where refund invoices have negative
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credit/debit instead of a reverting the original journal items.
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Odoo also have modules to comply with IFRS rules.
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Accounts Receivable & Payable
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=============================
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By default, Odoo uses a single account for all account
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receivable entries and one for all accounts payable entries. You can
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create separate accounts per customers/suppliers, but you don’t need
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to.
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As transactions are associated to customers or suppliers, you get
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reports to perform analysis per customer/supplier such as the customer
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statement, revenues per customers, aged receivable/payables, ...
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Wide range of financial reports
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===============================
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In Odoo, you can generate financial reports in real time. Odoo's
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reports range from basic accounting reports to advanced management
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reports. Odoo's reports include:
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* Performance reports (such as Profit and Loss, Budget Variance)
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* Position reports (such as Balance Sheet, Aged Payables, Aged
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Receivables)
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* Cash reports (such as Bank Summary)
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* Detail reports (such as Trial Balance and General Ledger)
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* Management reports (such as Budgets, Executive Summary)
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Odoo's report engine allows you to customize your own report based on
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your own formulae.
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Import bank feeds automatically
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===============================
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Bank reconciliation is a process that matches your bank statement
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lines, as supplied by the bank, to your accounting transactions in the
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general ledger. Odoo makes bank reconciliation easy by frequently
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importing bank statement lines from your bank directly into your Odoo
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account. This means you can have a daily view of your cashflow without
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having to log into your online banking or wait for your paper bank
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statements.
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Odoo speeds up bank reconciliation by matching most of your imported
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bank statement lines to your accounting transactions. Odoo also
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remembers how you've treated other bank statement lines and provides
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suggested general ledger transactions.
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Calculates the tax you owe your tax authority
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=============================================
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Odoo totals all your accounting transactions for your tax period and
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uses these totals to calculate your tax obligation. You can then check
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your sales tax by running Odoo's Tax Report.
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Inventory Valuation
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===================
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Odoo support both periodic (manual) and perpetual (automated)
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inventory valuations. The available methods are standard price,
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average price, LIFO (for countries allowing it) and FIFO.
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→ View impact of the valuation method on your transactions (link to
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memento)
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Easy retained earnings
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======================
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Retained earnings is the portion of income retained by your
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business. Odoo automatically calculates your current year earnings in
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real time so no year-end journal or rollover is required. This is
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calculated by reporting the profit and loss balance to your balance
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sheet report automatically.
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