Enhance Your Business With Your Own Chart Of Accounts In Odoo
Chart Of Accounts(COA) is simply a list of all accounts, a company/firm or organization might need to record all its various business transactions. It helps to make good financial decisions based on the information that it shows. Chart of accounts in Odoo is included in the accounting field which deals with the balance sheet or profit and loss accounts.
All the financial activities fall under some basic nature. The nature of financial activities represents different aspects of the company’s financial situation.
In Odoo, account types are automatically created when installing a chart of account. By default, Odoo provides a lot of chart of accounts, It allows to install one related to the specific country. Therefore, no need to create new account types. The most common basic nature of financial activities are Assets, Liability, Equity, Income and Expense.
The bellow list are the account types used in Odoo:
Receivables – Record funds owed to you
Prepayments – Record any payment made in advance of the goods/services being received later on
Current assets – Record assets that can be reasonably expected to be converted into cash within one year
Fixed Assets – Record assets and property that cannot be easily converted into cash
Non-current assets – Long term investments where the full value will not be realized within the accounting year
Bank and Cash – Record bank and cash transfer transactions
Payable – Record funds you owe
Current Liabilities – Financial obligations that are payable within one year
Non-current Liabilities – Financial obligations that will not become due within the accounting year
Equity – Record capital gains and losses
Current Year Earnings – Record net income or loss for a company within the current year
Income – Record revenue of business earns
Other Income – Record income that does not come from a company’s main business
Expenses – Record outflow of funds to pay for goods and services of business uses
Direct Costs – Record total cost incurred to obtain a sale and the cost of the goods or services sold
Depreciation – Record how the value of an asset declines over time
Configuring Chart of Accounts in Odoo - Adding / editing or removing chart of accounts
Opening the accounting application to get started chart of accounts in Odoo. Under Configurations, navigate and click chart of accounts on the accounting section.
You will see a list view of all accounts. From here you can create, edit and remove accounts as per the needs.
To create an account click the create button.
When you click the create button, you will get the following window.
The following fields are required when creating an account:
The account code is the unique identifier of the account. Account code will be generated depends on company accounting adviser, the number of business units and many other factors. The following is an example of a generalized accounting code pattern.
Assets Accounts – codes starting from 1000 to 1999
Equity Accounts – codes starting from 2000 to 2999
Liability Accounts – codes starting from 3000 to 3999
Income Accounts – codes starting from 4000 to 4999
Expense Accounts – codes starting from 5000 to 5999
The name of the account, which indicates what types of transactions are classified under this account.
The type of account is the most important detail needed while creating the accounts in Odoo chart of accounts. Because this will decide how this account will impact the company’s financial statements. It is also necessary to generate country-specific legal reports and to set the rules for closing the fiscal year and to generate the opening entries.
When finished, click the Save button.
To edit an existing account, click on the account you wish to edit and then click the Edit button.
When you click on the edit button you will get this window. Change the various fields, as needed. Then click the Save button. eg edit Transport Expenses to Travel Expenses
To delete an account, select the checkbox next to the account’s code. Then, click the Action drop-down menu and select ‘Delete’.
You can also view or/and print the report of any accounts in Odoo. There are three types of reports,
Partner Ledger: The sales invoices that were awaiting payment
General Ledger: All transactions during a chosen period
Trial Balance: Closing balances of account on a specified date
To view or print the reports, From reporting menu, select any of the above-mentioned reports of which you want to print.
Singo Africa Limited as official Odoo Partner in Tanzania is here to help you with Odoo Projects, We are ready to work and help you with Odoo into the revolutionary paradigm of your company, again, have flexible chart of accounts helps you getting flexible reports hence easy decision-making process. Join more than 4 Million happy people worldwide who trust and uses Odoo for the sake of their business expansions and growth.