Accounting cheat sheet

# Accounting cheat sheet

The Balance Sheet is a snapshot of the companyâs finances at a specific date (as opposed to
the Profit and Loss, which is an analysis over a period).
- Assets represent the companyâs wealth and the goods it owns. Fixed assets include buildings
and offices, while current assets include bank accounts and cash. The money owed by a client is
an asset. An employee is not an asset.
Assets represent the companyâs wealth and the goods it owns. Fixed assets include buildings
and offices, while current assets include bank accounts and cash. The money owed by a client is
an asset. An employee is not an asset.
- Liabilities are obligations from past events that the company will have to pay in the
future (utility bills, debts, unpaid suppliers). Liabilities could also be defined as a source
of financing which is provided to the company, also called leverage .
Liabilities are obligations from past events that the company will have to pay in the
future (utility bills, debts, unpaid suppliers). Liabilities could also be defined as a source
of financing which is provided to the company, also called leverage .
- Equity is the amount of the funds contributed by the owners of the company (founders or
shareholders) plus previously retained earnings (or losses). Each year, net profits (or losses)
may be reported as retained earnings or distributed to the shareholders (as a dividend).
Equity is the amount of the funds contributed by the owners of the company (founders or
shareholders) plus previously retained earnings (or losses). Each year, net profits (or losses)
may be reported as retained earnings or distributed to the shareholders (as a dividend).
What is owned (an asset) has been financed through debts to reimburse (liabilities) or equity
(profits, capital).
- An asset is a resource with economic value that an individual, corporation, or country owns
or controls with the expectation that it will provide a future benefit. Assets are reported on
a companyâs balance sheet. They are bought or created to increase a firmâs value or benefit its
operations.
An asset is a resource with economic value that an individual, corporation, or country owns
or controls with the expectation that it will provide a future benefit. Assets are reported on
a companyâs balance sheet. They are bought or created to increase a firmâs value or benefit its
operations.
- An expense is the costs of operations a company bears to generate revenues.
An expense is the costs of operations a company bears to generate revenues.
The profit and loss (P&L) report shows the companyâs performance over a specific period of
time, usually a quarter or a fiscal year.
- The revenue refers to the money earned by the company by selling goods and/or services.
The revenue refers to the money earned by the company by selling goods and/or services.
- The cost of goods sold (COGS, or also known as âCost of Saleâ) refers to the sale of
goodsâ costs (e.g., the cost of the materials and labor used to create the goods). The Gross profit equals the revenues from sales minus the cost of goods sold. Operating expenses (OPEX) include administration, sales and R&D salaries, rent and
utilities, miscellaneous costs, insurances, and anything beyond the costs of products sold
or the cost of sale.
The cost of goods sold (COGS, or also known as âCost of Saleâ) refers to the sale of
goodsâ costs (e.g., the cost of the materials and labor used to create the goods).
- The Gross profit equals the revenues from sales minus the cost of goods sold.
The Gross profit equals the revenues from sales minus the cost of goods sold.
- Operating expenses (OPEX) include administration, sales and R&D salaries, rent and
utilities, miscellaneous costs, insurances, and anything beyond the costs of products sold
or the cost of sale.
Operating expenses (OPEX) include administration, sales and R&D salaries, rent and
utilities, miscellaneous costs, insurances, and anything beyond the costs of products sold
or the cost of sale.
Assets = Liabilities + Equity

## Chart of accounts

The chart of accounts lists all the companyâs accounts: both Balance sheet accounts and P&L
accounts. Every transaction is recorded by debiting and crediting multiple accounts in a journal
entry. In a way, a chart of accounts is like a companyâs DNA!
Every account listed in the chart of accounts belongs to a specific category. In Odoo, each account
has a unique code and belongs to one of these categories:
- Equity and subordinated debts Equity is the amount of money invested by a companyâs shareholders to finance the
companyâs activities. Subordinated debts are the amount of money lent by a third party to a company to finance
its activities. In the event of the dissolution of a company, these third parties are
reimbursed before the shareholders.
- Equity is the amount of money invested by a companyâs shareholders to finance the
companyâs activities.
Equity is the amount of money invested by a companyâs shareholders to finance the
companyâs activities.
- Subordinated debts are the amount of money lent by a third party to a company to finance
its activities. In the event of the dissolution of a company, these third parties are
reimbursed before the shareholders.
Subordinated debts are the amount of money lent by a third party to a company to finance
its activities. In the event of the dissolution of a company, these third parties are
reimbursed before the shareholders.
- Fixed assets are tangible (i.e., physical) items or properties that a company purchases and
uses to produce its goods and services. Fixed assets are long-term assets. This means the assets
have a useful life of more than one year. They also include properties, plants, and equipments
(also known as âPP&Eâ) and are recorded on the balance sheet with that classification.
Fixed assets are tangible (i.e., physical) items or properties that a company purchases and
uses to produce its goods and services. Fixed assets are long-term assets. This means the assets
have a useful life of more than one year. They also include properties, plants, and equipments
(also known as âPP&Eâ) and are recorded on the balance sheet with that classification.
- Current assets and liabilities The current assets account is a balance sheet line item listed under the Assets section,
which accounts for all company-owned assets that can be converted to cash within one year.
Current assets include cash, cash equivalents, accounts receivable, stock inventory,
marketable securities, prepaid liabilities, and other liquid assets. Current liabilities are a companyâs short-term financial obligations due within one year.
An example of a current liability is money owed to suppliers in the form of accounts payable.
- The current assets account is a balance sheet line item listed under the Assets section,
which accounts for all company-owned assets that can be converted to cash within one year.
Current assets include cash, cash equivalents, accounts receivable, stock inventory,
marketable securities, prepaid liabilities, and other liquid assets.
The current assets account is a balance sheet line item listed under the Assets section,
which accounts for all company-owned assets that can be converted to cash within one year.
Current assets include cash, cash equivalents, accounts receivable, stock inventory,
marketable securities, prepaid liabilities, and other liquid assets.
- Current liabilities are a companyâs short-term financial obligations due within one year.
An example of a current liability is money owed to suppliers in the form of accounts payable.
Current liabilities are a companyâs short-term financial obligations due within one year.
An example of a current liability is money owed to suppliers in the form of accounts payable.
- Bank and cash accounts A bank account is a financial account maintained by a bank or other financial institution
in which the financial transactions between the bank and a customer are recorded. A cash account , or cash book, may refer to a ledger in which all cash transactions are
recorded. The cash account includes both the cash receipts and the cash payment journals.
- A bank account is a financial account maintained by a bank or other financial institution
in which the financial transactions between the bank and a customer are recorded.
A bank account is a financial account maintained by a bank or other financial institution
in which the financial transactions between the bank and a customer are recorded.
- A cash account , or cash book, may refer to a ledger in which all cash transactions are
recorded. The cash account includes both the cash receipts and the cash payment journals.
A cash account , or cash book, may refer to a ledger in which all cash transactions are
recorded. The cash account includes both the cash receipts and the cash payment journals.
- Expenses and income An expense is the costs of operations a company bears to generate revenues. It is simply
defined as the cost one is required to spend on obtaining something. Common expenses include
supplier payments, employee wages, factory leases, and equipment depreciation. The term â income â generally refers to the amount of money, property, and other transfers
of value received over a set period of time in exchange for services or products.
- An expense is the costs of operations a company bears to generate revenues. It is simply
defined as the cost one is required to spend on obtaining something. Common expenses include
supplier payments, employee wages, factory leases, and equipment depreciation.
An expense is the costs of operations a company bears to generate revenues. It is simply
defined as the cost one is required to spend on obtaining something. Common expenses include
supplier payments, employee wages, factory leases, and equipment depreciation.
- The term â income â generally refers to the amount of money, property, and other transfers
of value received over a set period of time in exchange for services or products.
The term â income â generally refers to the amount of money, property, and other transfers
of value received over a set period of time in exchange for services or products.

### Example

*: Customer Refund and Customer Payment boxes cannot be simultaneously selected as they are contradictory.
Balance = Debit - Credit

## Journal entries

Every financial document of the company (e.g., an invoice, a bank statement, a pay slip, a capital
increase contract) is recorded as a journal entry, impacting several accounts.
For a journal entry to be balanced, the sum of all its debits must be equal to the sum of all its
credits.
examples of accounting entries for various transactions. (see entries.js)

## Reconciliation

Reconciliation is the process of linking
journal items of a specific account and matching credits and debits.
Its primary purpose is to link payments to their related invoices to mark them as paid. This is done
by doing a reconciliation on the accounts receivable account and/or the accounts payable account.
Reconciliation is performed automatically by the system when:
- the payment is registered directly on the invoice
the payment is registered directly on the invoice
- the links between the payments and the invoices are detected at the bank matching process
the links between the payments and the invoices are detected at the bank matching process
Customer Statement Example

## Bank Reconciliation

Bank reconciliation is the matching of bank statement lines (provided by your bank) with
transactions recorded internally (payments to suppliers or from customers). For each line in a bank
statement, it can be:
- matched with a previously recorded payment : a payment is registered when a check is received
from a customer, then matched when checking the bank statement.
matched with a previously recorded payment : a payment is registered when a check is received
from a customer, then matched when checking the bank statement.
- recorded as a new payment : the paymentâs journal entry is created and reconciled with the
related invoice when processing the bank statement.
recorded as a new payment : the paymentâs journal entry is created and reconciled with the
related invoice when processing the bank statement.
- recorded as another transaction : bank transfer, direct charge, etc.
recorded as another transaction : bank transfer, direct charge, etc.
Odoo should automatically reconcile most transactions; only a few should need manual review. When
the bank reconciliation process is finished, the balance on the bank account in Odoo should match
the bank statementâs balance.

## Checks Handling

There are two approaches to managing checks and internal wire transfers:
- Two journal entries and a reconciliation
Two journal entries and a reconciliation
- One journal entry and a bank reconciliation
One journal entry and a bank reconciliation
The first journal entry is created by registering the payment on the
invoice. The second one is created when registering the bank statement.
A journal entry is created by registering the payment on the invoice. When
reconciling the bank statement, the statement line is linked to the
existing journal entry.

Chart of accounts
Example
Journal entries
Reconciliation
Bank Reconciliation
Checks Handling


Consolidation

# Consolidation

Consolidation allows combining financial data from multiple separate companies , each with its
own books, into a unified view, providing a âfair imageâ of the entire groupâs financial health.
It helps create a clear, comprehensive view of the groupâs financial performance by combining data
from multiple companies.
Consolidating companies involves legally separate entities , whereas branches are subdivisions of a single legal entity which often share the
head officeâs resources (journals, taxes, accounts, fiscal positions) and are not consolidated in
the same way.

## Consolidation tools

Several tools combined together will contribute to the construction of the financial
consolidation:
- Account Mapping: Similar accounts from different companies can be mapped together. This
allows Odoo to combine them correctly in consolidated reports. To map accounts, go to Accounting â£ Configuration â£ Chart of Accounts .  Click View on the account line. In the Mapping tab, enter a code in the corresponding company Code column to map the account. Note Import mapping or merge existing
accounts using the merging tool can simplify the process. When multiple accounts from one company are mapped to a single account in another, it is then
possible to group the multiple accounts into a single line in the other companyâs reporting by grouping by the account code ( account_code ) rather
than the account ID ( account_id ). Note Some reports, such as the profit and loss , split
the lines into different sections by account type. When these reports are grouped by account
code, the section splits are maintained, but within each section, line grouping by account
code is respected. Example Belgian Company is a parent company with a subsidiary, American Company. American Company has
five income accounts: 400000 Product Sales - Domestic 400100 Product Sales - International 410000 Service Revenue - Consulting 420000 Subscription Revenue 430000 Freight & Handling Revenue All five of the US income accounts correspond to one single income account (700000 Income) in
the Belgian Company. For the Belgian Companyâs profit and loss report to show one line for all of the American
Companyâs combined income accounts related to the Belgian Companyâs single income account, all
five income accounts from the American Company must be mapped to The Belgian Companyâs 700000
Income account, and the reportâs lines must be grouped by the account code.
Account Mapping: Similar accounts from different companies can be mapped together. This
allows Odoo to combine them correctly in consolidated reports. To map accounts, go to Accounting â£ Configuration â£ Chart of Accounts .  Click View on the account line. In the Mapping tab, enter a code in the corresponding company Code column to map the account.
Import mapping or merge existing
accounts using the merging tool can simplify the process.
When multiple accounts from one company are mapped to a single account in another, it is then
possible to group the multiple accounts into a single line in the other companyâs reporting by grouping by the account code ( account_code ) rather
than the account ID ( account_id ).
`account_code`
`account_id`
Some reports, such as the profit and loss , split
the lines into different sections by account type. When these reports are grouped by account
code, the section splits are maintained, but within each section, line grouping by account
code is respected.
Belgian Company is a parent company with a subsidiary, American Company. American Company has
five income accounts:
- 400000 Product Sales - Domestic
400000 Product Sales - Domestic
- 400100 Product Sales - International
400100 Product Sales - International
- 410000 Service Revenue - Consulting
410000 Service Revenue - Consulting
- 420000 Subscription Revenue
420000 Subscription Revenue
- 430000 Freight & Handling Revenue
430000 Freight & Handling Revenue
All five of the US income accounts correspond to one single income account (700000 Income) in
the Belgian Company.
For the Belgian Companyâs profit and loss report to show one line for all of the American
Companyâs combined income accounts related to the Belgian Companyâs single income account, all
five income accounts from the American Company must be mapped to The Belgian Companyâs 700000
Income account, and the reportâs lines must be grouped by the account code.
- Multi-Ledgers: Ledgers are fundamental to the process of consolidation. They are either: Regular Ledgers: Each company in the consolidation scope has its own standard accounting
ledger where all the regular day-to-day transactions are recorded. It excludes the companyâs
consolidation adjustment journals. Multi-Ledger for Consolidation: The company doing the actual consolidation also has a
special multi-ledger. This one includes all the other companiesâ consolidation adjustments
journals (the ones excluded from their own ledgers). This allows for viewing the total impact
of all the adjustments. To create a new ledger, go to Accounting â£ Configuration â£ Multi-Ledgers and hit the New button. Enter a name, pick the company the ledger is linked to and
most importantly, determine which journals are to be excluded from the ledger.
Multi-Ledgers: Ledgers are fundamental to the process of consolidation. They are either:
- Regular Ledgers: Each company in the consolidation scope has its own standard accounting
ledger where all the regular day-to-day transactions are recorded. It excludes the companyâs
consolidation adjustment journals.
Regular Ledgers: Each company in the consolidation scope has its own standard accounting
ledger where all the regular day-to-day transactions are recorded. It excludes the companyâs
consolidation adjustment journals.
- Multi-Ledger for Consolidation: The company doing the actual consolidation also has a
special multi-ledger. This one includes all the other companiesâ consolidation adjustments
journals (the ones excluded from their own ledgers). This allows for viewing the total impact
of all the adjustments.
Multi-Ledger for Consolidation: The company doing the actual consolidation also has a
special multi-ledger. This one includes all the other companiesâ consolidation adjustments
journals (the ones excluded from their own ledgers). This allows for viewing the total impact
of all the adjustments.
To create a new ledger, go to Accounting â£ Configuration â£ Multi-Ledgers and hit the New button. Enter a name, pick the company the ledger is linked to and
most importantly, determine which journals are to be excluded from the ledger.
- Multi-Company Selector: The consolidated view can be accessed using the multi-company selector. Selecting the consolidating company as the current company and making the other
companies visible in the selector, all the journal items are displayed from the consolidating
companyâs perspective.
selector. Selecting the consolidating company as the current company and making the other
companies visible in the selector, all the journal items are displayed from the consolidating
companyâs perspective.
- Horizontal Groups: Odooâs reporting tools allow for combining multi-ledgers and using horizontal groups to view the consolidated Balance Sheet or P&L. They also show how much each
company contributes to the overall consolidated figures. Follow these steps to create an Horizontal Group : Activate the developer mode . Go to Accounting â£ Configuration â£ Horizontal Groups and click New . Add a Group Name and select the Reports where the horizontal group
can be used. In the Field column, click Add a line . In the Create rules window, add a Field and create a new Domain rule if needed. Then, click Save & Close . Important When opened, financial reports usually default to a statutory view, using the companyâs
regular ledger (including its consolidation adjustment). To see the full consolidation picture, make sure to select the multi-ledger that includes all the consolidation adjustments.
horizontal groups to view the consolidated Balance Sheet or P&L. They also show how much each
company contributes to the overall consolidated figures.
Follow these steps to create an Horizontal Group :
- Activate the developer mode .
Activate the developer mode .
- Go to Accounting â£ Configuration â£ Horizontal Groups and click New .
Go to Accounting â£ Configuration â£ Horizontal Groups and click New .
- Add a Group Name and select the Reports where the horizontal group
can be used.
Add a Group Name and select the Reports where the horizontal group
can be used.
- In the Field column, click Add a line .
In the Field column, click Add a line .
- In the Create rules window, add a Field and create a new Domain rule if needed. Then, click Save & Close .
In the Create rules window, add a Field and create a new Domain rule if needed. Then, click Save & Close .
When opened, financial reports usually default to a statutory view, using the companyâs
regular ledger (including its consolidation adjustment). To see the full consolidation picture, make sure to select the multi-ledger that includes all the consolidation adjustments.
- Cumulative Translation Adjustments: When consolidating companies with different currencies,
Odoo handles the translation. Equity accounts: Use the historical exchange rate. Profit & Loss (P&L) accounts: Use the average exchange rate. Balance sheet accounts (excluding equity): Use the closing exchange rate. Important The rates used are those of the company currently selected.
Cumulative Translation Adjustments: When consolidating companies with different currencies,
Odoo handles the translation.
- Equity accounts: Use the historical exchange rate.
Equity accounts: Use the historical exchange rate.
- Profit & Loss (P&L) accounts: Use the average exchange rate.
Profit & Loss (P&L) accounts: Use the average exchange rate.
- Balance sheet accounts (excluding equity): Use the closing exchange rate.
Balance sheet accounts (excluding equity): Use the closing exchange rate.
The rates used are those of the company currently selected.

## Account merging

Accounts can be merged to reduce the number of accounts and standardize them across companies. This
is optional; consolidation works without it.
To use the merge tool, select all the companies with an account that needs to be merged in the
company selector in the top right corner of the screen.
Then, go to Accounting â£ Configuration â£ Chart of Accounts and select the
accounts to merge. Click the Actions menu and select Merge
accounts .
In the Merge accounts window, enable the Group by name? option if needed and
click Merge .
The selected accounts are then merged into a single shared account, accessible by all the chosen
companies, just as if the account had been directly created to be shared.

## Account unmerging

Accounts can also be unmerged if needed.
Note that unmerging accounts will not unmerge the chatters of the accounts. Once merged, the
changesâ histories are permanently merged.
To unmerge accounts, select a company with a shared account in the company selector at the top
right corner of the screen. Then, go to Accounting â£ Configuration â£ Chart of
Accounts and select the account to unmerge. Click the Actions menu and
select Unmerge accounts .
An Odoo Warning confirmation pop-up window will appear, listing how the accounts will
be split.
Click Unmerge . A new account linked to each company will be created for the previously
shared account.

## Import a mapping

To import an account mapping , select all the related companies in the company selector at the
top right corner of the screen and go to Accounting â£ Configuration â£ Chart of
Accounts .
First, to choose the fields to export, select the accounts, click the Actions button and select Export . Then, in the Export data window, add the Code mapping/Code , Code Mapping/Company and External ID fields using the icon and click Export . No other
field is required.
Second, rework it in a spreadsheet adding the desired code for each company on desired accounts.
Third, to reimport the file (xlsx or csv format) in Odoo, click Import and, in the Import Chart of Accounts section, click Import CoA . In the Accounting Import Guide , drop or click Upload Data File to import the file.
Then, click Import .
Finally, the codes now take into account the mapping company per company.

Consolidation tools
Account merging
Account unmerging
Import a mapping


Journals

# Journals

Journal entries are recorded in different journals to maintain an organized record of a
companyâs financial transactions. Odoo uses six different types of journals to organize accounting
records:
- Credit Card
- Purchase
- Miscellaneous
It is possible to have multiple journals of the same type, such as two separate bank journals,
each for a unique bank account, or two separate sales journals to track B2B versus B2C income.
Each card on the Accounting Dashboard represents a journal. To edit the configuration of
a journal, click the (vertical ellipsis) on the journal card, then
click Configuration . Alternatively, go to Accounting â£ Configuration
â£ Journals to select and edit an existing journal or to create a new one.
While different journal types have slightly different fields to configure, some fields are
consistent across all the journal types:
- Short Code : Each journal must have a unique code (from 1 to 5 characters long). The
short code is used as the prefix for all journal entries belonging to this journal.
Short Code : Each journal must have a unique code (from 1 to 5 characters long). The
short code is used as the prefix for all journal entries belonging to this journal.
- Currency : If desired, set the currency of this journal. For bank and cash journals,
this is the currency of the journalâs transactions . This field is
only visible when multiple currencies are enabled.
Currency : If desired, set the currency of this journal. For bank and cash journals,
this is the currency of the journalâs transactions . This field is
only visible when multiple currencies are enabled.
The Advanced Settings tab contains more technical options:
- Allowed accounts : Limit which accounts are available when recording journal entries in
this journal. Leave this field blank to allow all accounts.
Allowed accounts : Limit which accounts are available when recording journal entries in
this journal. Leave this field blank to allow all accounts.
- Email Alias : Set an email address to create journal entries by digitizing PDFs sent
to this address. This is most commonly used to create customer invoices and vendor bills .
Email Alias : Set an email address to create journal entries by digitizing PDFs sent
to this address. This is most commonly used to create customer invoices and vendor bills .
- Secure Posted Entries with Hash : Restrict the alterability of this journalâs entries to comply with tax authorities in
certain countries.
Secure Posted Entries with Hash : Restrict the alterability of this journalâs entries to comply with tax authorities in
certain countries.
The Secure Posted Entries with Hash option cannot be removed from a journal once the
journal has a posted journal entry.
- Bank and cash journals do not have the Secure Posted Entries with Hash or Email Alias fields.
Bank and cash journals do not have the Secure Posted Entries with Hash or Email Alias fields.
- If an alias domain has not yet been configured, a link to Configure Alias Domain is displayed instead of the Email Alias field.
If an alias domain has not yet been configured, a link to Configure Alias Domain is displayed instead of the Email Alias field.

## Bank, cash, and credit card journals

Bank, cash, and credit card journals share the following features:
- Suspense Account : Transactions on this journal are posted on this
account until they are reconciled, at which point this account is replaced with the account the
transaction was reconciled against. At any moment, the suspense accountâs balance in the general
ledger shows the balance of transactions that have not yet been reconciled. Note When a bank transaction is reconciled, the journal entry is modified to replace the bank
suspense account with the account of the journal item it is reconciled with. This account is
usually either: the outstanding receipts or payments account if reconciling with a registered payment; or the account receivable or payable if reconciling with an invoice or bill directly.
Suspense Account : Transactions on this journal are posted on this
account until they are reconciled, at which point this account is replaced with the account the
transaction was reconciled against. At any moment, the suspense accountâs balance in the general
ledger shows the balance of transactions that have not yet been reconciled.
When a bank transaction is reconciled, the journal entry is modified to replace the bank
suspense account with the account of the journal item it is reconciled with. This account is
usually either:
- the outstanding receipts or payments account if reconciling with a registered payment; or
the outstanding receipts or payments account if reconciling with a registered payment; or
- the account receivable or payable if reconciling with an invoice or bill directly.
the account receivable or payable if reconciling with an invoice or bill directly.
- Dedicated Payment Sequence : Tick this field to use separate sequences for payments
and transactions posted on this journal. Note If the Dedicated Payment Sequence field is ticked, payments that use an outstanding account will have references that
add P before the journalâs short code. Otherwise, the references will begin with PAY .
Dedicated Payment Sequence : Tick this field to use separate sequences for payments
and transactions posted on this journal.
If the Dedicated Payment Sequence field is ticked, payments that use an outstanding account will have references that
add P before the journalâs short code. Otherwise, the references will begin with PAY .
The Incoming Payments and Outgoing Payments tabs contain the payment
methods of this journal. Different payment methods are
available depending on the journal type. If desired, set outstanding accounts on the payment methods.
- Bank and cash accounts
Bank and cash accounts
- Multi-currency system
Multi-currency system
- Transactions
- Bank configuration

### Outstanding accounts

By default, payments in Odoo do not create journal entries, but they can be configured to create
journal entries by using outstanding accounts on bank and cash journals.
- An outstanding receipts account is where incoming payments are posted until they are linked
with incoming bank transactions.
An outstanding receipts account is where incoming payments are posted until they are linked
with incoming bank transactions.
- An outstanding payments account is where outgoing payments are posted until they are linked
with outgoing bank transactions.
An outstanding payments account is where outgoing payments are posted until they are linked
with outgoing bank transactions.
These accounts are usually of type Current Assets and Current Liabilities .
Payments that are registered in Odoo are posted to the outstanding receipts and outstanding payments
accounts until they are reconciled. At any moment, the outstanding receipts accountâs balance in the
general ledger shows the balance of registered incoming payments that have not yet been reconciled,
and the outstanding payments accountâs balance in the general ledger shows the balance of registered
outgoing payments that have not yet been reconciled.

#### Configuration

To configure outstanding accounts, go to Accounting â£ Configuration â£ Journals and select or create a bank or cash journal. In the Incoming Payments and Outgoing Payments tabs, set Outstanding Receipts accounts and Outstanding Payments accounts for each payment method that you want to create journal
entries.
- If the main bank account of the journal is added as an outstanding receipts account or
outstanding payments account, when a payment is registered, the invoice or billâs status is
directly set to Paid .
If the main bank account of the journal is added as an outstanding receipts account or
outstanding payments account, when a payment is registered, the invoice or billâs status is
directly set to Paid .
- If the outstanding receipts or outstanding payments account for a payment method is left blank,
registering a payment with that payment method will not create any journal entry.
If the outstanding receipts or outstanding payments account for a payment method is left blank,
registering a payment with that payment method will not create any journal entry.

### Bank

Bank journals are used to record journal entries related to bank transactions and incoming and outgoing payments . The following
fields are specific to bank journals:
- Bank Account : This Bank and Cash type account is the default account for
this bank journal.
Bank Account : This Bank and Cash type account is the default account for
this bank journal.
- Account Number : The bank accountâs number is used when registering payments and is
required for generating outgoing payment files, such as SEPA or NACHA . To edit the bank account details, click on the (Internal link) button next to the Account Number and update the account information accordingly.
Account Number : The bank accountâs number is used when registering payments and is
required for generating outgoing payment files, such as SEPA or NACHA . To edit the bank account details, click on the (Internal link) button next to the Account Number and update the account information accordingly.
- Bank : The bank name is used when registering payments and is required for generating
outgoing payment files. To edit the bank account details, click on the (Internal link) button next to the Bank name and update the account
information accordingly.
Bank : The bank name is used when registering payments and is required for generating
outgoing payment files. To edit the bank account details, click on the (Internal link) button next to the Bank name and update the account
information accordingly.
- Bank Feeds : Define the method of creating bank transactions , whether Manual or via Online Synchronization .
Bank Feeds : Define the method of creating bank transactions , whether Manual or via Online Synchronization .
- Split Transactions : Split collective payments for CODA files.
Split Transactions : Split collective payments for CODA files.
Multiple payment methods are available for bank journals, as are configurations for generating
outgoing payment files, such as SEPA or NACHA .

### Cash

Cash journals are used to record journal entries related to cash transactions . The following fields are specific to cash journals:
- Cash Account : This Bank and Cash type account is the default account for
this cash journal.
Cash Account : This Bank and Cash type account is the default account for
this cash journal.
- Profit Account : This Income or Other Income type account is
used to register a profit when the ending balance of a cash register is greater than expected.
Profit Account : This Income or Other Income type account is
used to register a profit when the ending balance of a cash register is greater than expected.
- Loss Account : This Expenses type account is used to register a loss when
the ending balance of a cash register is less than expected.
Loss Account : This Expenses type account is used to register a loss when
the ending balance of a cash register is less than expected.
Only manual payment methods are available for cash journals.

### Credit card

Credit card journals are used to record journal entries related to credit cards. The following
fields are specific to credit card journals:
- Journal Account : This Credit Card type account is the default account for
this credit card journal.
Journal Account : This Credit Card type account is the default account for
this credit card journal.
- Bank Feeds : Define the method of creating credit card transactions, whether manual or
via Online Synchronization .
Bank Feeds : Define the method of creating credit card transactions, whether manual or
via Online Synchronization .
Only manual payment methods are available for credit card journals.

## Sales, purchase, and miscellaneous journals

### Sales

Sales journals, also known as income journals, are used to record journal entries related to customer invoices . The following fields are specific to customer
invoice journals:
- Default Income Account : Invoices in this journal use this Income or Other Income type account unless overwritten by another income account set on the
product category, product, or invoice line itself.
Default Income Account : Invoices in this journal use this Income or Other Income type account unless overwritten by another income account set on the
product category, product, or invoice line itself.
- Dedicated Credit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main invoice sequence and adds an R to the reference before the journalâs short code.
Dedicated Credit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main invoice sequence and adds an R to the reference before the journalâs short code.
`R`
- Dedicated Debit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main invoice sequence and adds a D before the journalâs short code.
Dedicated Debit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main invoice sequence and adds a D before the journalâs short code.
`D`
Sales journals have additional fields in the Advanced Settings tab that allow you to set
the default communication format that will appear on customer invoices so that the customer can
refer to that particular invoice when making a payment:
- Communication Type : Choose if the format of the payment reference communicated to the
customer should be based on the invoice number or the customerâs number.
Communication Type : Choose if the format of the payment reference communicated to the
customer should be based on the invoice number or the customerâs number.
- Communication Standard : Choose the format of the payment reference itself that is
communicated to the customer.
Communication Standard : Choose the format of the payment reference itself that is
communicated to the customer.

### Purchase

Purchase journals are used to record journal entries related to vendor bills . The following fields are specific to purchase journals:
- Default Expense Account : Vendor bills in this journal use this Expense type account unless overwritten by another expense account set on the product category, product,
or expense.
Default Expense Account : Vendor bills in this journal use this Expense type account unless overwritten by another expense account set on the product category, product,
or expense.
- Private Part Account : Select the account to be used to register the private part of
mixed expenses.
Private Part Account : Select the account to be used to register the private part of
mixed expenses.
- Dedicated Credit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main vendor bill sequence and adds
an R to the reference before the journalâs short code.
Dedicated Credit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main vendor bill sequence and adds
an R to the reference before the journalâs short code.
`R`
- Dedicated Debit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main invoice sequence and adds a D before the journalâs short code.
Dedicated Debit Note Sequence : Check this box to use a separate sequence for the
reference of credit notes that increments separately from the main invoice sequence and adds a D before the journalâs short code.
`D`

### Miscellaneous

Miscellaneous journals are used to record journal entries that are not related to any of the other
journal types such as tax closing journal entries.
- Tax return eLearning
- Tax return (VAT declaration)
Tax return (VAT declaration)


Multi-currency system

# Multi-currency system

Odoo allows you to issue invoices, receive bills, and record transactions in currencies other than
the main currency configured for your company. You can also set up bank accounts in other currencies
and run reports on your foreign currency activities.
- Manage a bank account in a foreign currency
Manage a bank account in a foreign currency

## Configuration

### Main currency

The main currency is defined by default according to the companyâs country. You can change it by
going to Accounting â£ Configuration â£ Settings â£ Currencies and changing the
currency in the Main Currency setting.

### Enable foreign currencies

Go to Accounting â£ Configuration â£ Currencies , and enable the currencies you
wish to use by toggling the Active button.

### Currency rates

#### Manual update

To manually create and set a currency rate, go to Accounting â£ Configuration â£
Currencies , click on the currency you wish to change the rate of, and under the Rates tab, click Add a line to create a new rate.

#### Automatic update

When you activate a second currency for the first time, Automatic Currency Rates appears
under Accounting Dashboard â£ Configuration â£ Settings â£ Currencies . By
default, you have to click on the Update now button ( ð ) to update the rates.
Odoo can update the rates at regular intervals. To do so, change the Interval from Manually to Daily , Weekly , or Monthly . You can also
select the web service from which you want to retrieve the latest currency rates by clicking on the Service field.

### Exchange difference entries

Odoo automatically records exchange differences entries on dedicated accounts, in a dedicated
journal.
You can define which journal and accounts to use to post exchange difference entries by
going to Accounting â£ Configuration â£ Settings â£ Default Accounts and editing
the Journal , Gain Account , and Loss Account .
If you receive a payment for a customer invoice one month after it was issued, the exchange rate
has likely changed since. Therefore, this fluctuation implies some profit or loss due to the
exchange difference, which Odoo automatically records in the default Exchange Difference journal.

### Chart of accounts

Each account can have a set currency. By doing so, all moves relevant to the account are forced to
have that accountâs currency.
To do so, go to Accounting â£ Configuration â£ Charts of Accounts and select a
currency in the field Account Currency . If left empty, all active currencies are handled
instead of just one.

### Journals

If a currency is set on a journal , that journal only handles transactions in that currency.
To do so, go to Accounting â£ Configuration â£ Journals , open the journal you
want to edit, and select a currency in the field Currency .

## Multi-currency accounting

### Invoices, bills, and other documents

For all documents, you can select the currency and journal to use for the transaction on the
document itself.

### Payment registration

To register a payment in a currency other than your companyâs main currency, click on the Register Payment payment button of your document and, in the pop-up window, select a currency in the Amount field.

### Bank transactions

When creating or importing bank transactions, the amount is in the companyâs main currency. To input
a foreign currency , select a currency in the Foreign Currency . Once selected, enter
the Amount in your main currency for it to automatically get converted in the foreign
currency in the Amount in Currency field .
When reconciling, Odoo displays both the foreign currency amount and the equivalent amount in your
companyâs main currency.

### Exchange rate journal entries

To see exchange difference journal entries , go to Accounting Dashboard â£
Accounting â£ Journals: Miscellaneous .

Configuration
Main currency
Enable foreign currencies
Currency rates
Exchange difference entries
Chart of accounts
Journals
Multi-currency accounting
Invoices, bills, and other documents
Payment registration
Bank transactions
Exchange rate journal entries


Tax units

# Tax units

This is only applicable to multi-company environments.
A tax unit is a group of VAT-taxable enterprises that are legally independent of each other but
are closely linked financially, organizationally, and economically and therefore considered the same
VAT-taxable enterprise. Tax units are not mandatory, but if created, constituent companies of
the unit must belong to the same country , use the same currency , and one company must be
designated as the representative company of the tax unit . Tax units receive a specific tax ID intended only for tax returns . Constituent companies keep their tax ID used
for commercial purposes .
Enterprise A owes â¬300.000,00 of VAT taxes and enterprise B can recover â¬280.000,00 of
VAT taxes. They form up as a tax unit so that the two amounts balance out and must conjointly
only pay â¬20.000,00 of VAT taxes.

## Configuration

To create a tax unit , go to Accounting â£ Configuration â£ Tax Units , and
click New . Enter a name for the unit, select a Country , the Companies to incorporate in the unit, the Main Company , and the Tax ID of the constituent company of that tax unit.

### Fiscal position

As transactions between constituents of the same tax unit are not subject to VAT, it is possible
to create a tax mapping (fiscal position) to avoid the
application of VAT on inter-constituent transactions.
Be sure a constituent company has been selected before, then go to Accounting â£
Configuration â£ Fiscal Positions , and Create a new fiscal position . Click the Tax Mapping tab, select the Tax on Product usually applied for non-constituent transactions, and in Tax to Apply , select the 0% tax to apply for constituent transactions.
Do the same for the Account Mapping tab if required, and repeat this process for each constituent company on your database.
Depending on your localization package , taxes
may vary from the screenshot displayed.
Then, assign the fiscal position by opening the Contacts app. Search for a constituent company, and open the contactâs card . Click the Sales & Purchase tab, and in the Fiscal Position field, input the fiscal position created for the tax unit .
Repeat the process for each constituent company card form, on each company database.
Fiscal positions (tax and account mapping) .

## Tax report

The representative company can access the aggregated tax report of the tax unit by going to Accounting â£ Reporting â£ Tax Report , and selecting the tax unit in Tax Unit . This report contains the aggregated transactions of all constituents and
the .XML export contains the name and VAT number of the main company.

Configuration
Fiscal position
Tax report


Payments

# Payments

In Odoo, payments can either be automatically linked to an invoice or bill or be stand-alone records
for use at a later date:
- If a payment is linked to an invoice or bill , it reduces/settles the amount due on the
invoice. Multiple payments on the same invoice are possible.
If a payment is linked to an invoice or bill , it reduces/settles the amount due on the
invoice. Multiple payments on the same invoice are possible.
- If a payment is not linked to an invoice or bill , the customer has an outstanding credit with
the company, or the company has an outstanding debit with a vendor. Those outstanding amounts
reduce/settle unpaid invoices/bills.
If a payment is not linked to an invoice or bill , the customer has an outstanding credit with
the company, or the company has an outstanding debit with a vendor. Those outstanding amounts
reduce/settle unpaid invoices/bills.
- Internal transfers
- Bank reconciliation
- Odoo Tutorials: Bank Configuration
Odoo Tutorials: Bank Configuration

## Payment methods

Several payment methods are available in Odoo to allow different configurations for different types
of payments. Examples of payment methods include manual payments (such as cash), checks , and batch payment files (such as NACHA and SEPA ). Payment methods can be
configured in the Incoming Payments and Outgoing Payments tabs of a bank or
cash journal.
Payment methods for Point of Sale

### Preferred payment method

A contactâs preferred payment method can be set so that when a payment is created for that contact,
the payment method is automatically selected by default. Invoices and bills can be filtered by Payment Method to simplify group payments.
To set a preferred Payment Method for a customer or a vendor, go to Accounting â£ Customers â£ Customers or Accounting â£ Vendors
â£ Vendors and select the customer or vendor. In the Sales & Purchase tab of the
contact form, select the preferred Payment Method in the Sales section for
invoice payments or for vendor bill payments in the Purchase section.
Access a full list of all contacts from the Customers or Vendors list
view by removing the Customers or Vendors filter. Alternatively, access
the full contact list through the Contacts app.

### Checks

Vendor bills can be paid by check using a dedicated outgoing payment
method, which allows check numbers to be tracked and checks to be printed directly from Odoo.
For incoming customer check payments, you can use the default Manual Payment payment
method, or you can create a payment method specifically for checks to help identify such payments
quickly. To create a Check payment method, follow these steps:
- Go to Accounting â£ Configuration â£ Journals and select the Bank journal.
Go to Accounting â£ Configuration â£ Journals and select the Bank journal.
- In the Incoming Payments tab, click Add a line .
In the Incoming Payments tab, click Add a line .
- As Payment Method , select Manual , then enter Check as the Name .
As Payment Method , select Manual , then enter Check as the Name .
`Check`
When registering a customer payment on an invoice or not related to an invoice , use the new Check payment method.
Registering a customer payment by check in Odoo does not move funds. Checks must be deposited in
order to make the payment. Once deposited to your bank, the check should appear as a bank
transaction , at which point it can be reconciled with the registered payment.
- For best practice, enter the check number as the Memo when registering a customer
payment by check.
For best practice, enter the check number as the Memo when registering a customer
payment by check.
- Batch payments can simplify reconciling deposits containing multiple
checks.
Batch payments can simplify reconciling deposits containing multiple
checks.

## Registering payment from an invoice or bill

To register a payment for an invoice or a bill, follow these steps:
- Click Pay on a customer invoice or vendor bill. In the Pay window, select
the Journal and the Payment Date .
Click Pay on a customer invoice or vendor bill. In the Pay window, select
the Journal and the Payment Date .
- If previously set, the contactâs preferred Payment Method is automatically selected
by default but can be updated if necessary.
If previously set, the contactâs preferred Payment Method is automatically selected
by default but can be updated if necessary.
- If using payment terms , the Amount is
automatically set based on the installment amounts defined by the payment term. To pay the full
amount instead, click full amount .
If using payment terms , the Amount is
automatically set based on the installment amounts defined by the payment term. To pay the full
amount instead, click full amount .
- If necessary, edit the Memo .
If necessary, edit the Memo .
- Click Create Payment .
Click Create Payment .
After the payment is registered, the customer invoice or vendor bill is marked as In payment .
If no outstanding accounts are configured,
no journal entry is created. To display more information about the payment, click the Payments smart button.
When the invoice or vendor bill is reconciled with a bank
transaction, its status is updated to Paid .
- If a bank transaction is reconciled in a different currency, a journal entry is
automatically created to post the currency exchange gains/loss amount.
If a bank transaction is reconciled in a different currency, a journal entry is
automatically created to post the currency exchange gains/loss amount.
- When a bank transaction is reconciled with an invoice with cash-basis, a journal entry is
automatically created to post the cash-basis tax amount.
When a bank transaction is reconciled with an invoice with cash-basis, a journal entry is
automatically created to post the cash-basis tax amount.
By default, payments in Odoo do not create journal entries, but they can easily be configured
to create journal entries using outstanding accounts .
Registering a payment on a customer invoice or vendor bill generates a new journal entry and
reduces the Amount Due based on the payment amount. The counterpart is
reflected in an outstanding receipts or payments account. At this point, the customer invoice or vendor bill is marked as In payment . Then, when the payment is reconciled with
a bank transaction, the invoice or vendor bill status changes to Paid .
The information icon next to the payment line displays more
information about the payment. To access additional information, such as the related journal,
click View .
- Unreconciling a payment unlinks it from the invoice or bill but does not delete the
payment.
Unreconciling a payment unlinks it from the invoice or bill but does not delete the
payment.
- If a payment is (un)reconciled in a different currency, a journal entry is automatically
created to post the currency exchange gains/losses (reversal) amount.
If a payment is (un)reconciled in a different currency, a journal entry is automatically
created to post the currency exchange gains/losses (reversal) amount.
- If a payment is (un)reconciled on an invoice with cash-basis taxes, a journal entry is
automatically created to post the cash-basis tax (reversal) amount.
If a payment is (un)reconciled on an invoice with cash-basis taxes, a journal entry is
automatically created to post the cash-basis tax (reversal) amount.
If the main bank account is set as the outstanding account on the bank journalâs payment
method, registering the full payment on an invoice or bill moves the invoice/bill directly
to the Paid status without requiring bank reconciliation.

## Registering payments not tied to an invoice or bill

When a new payment is registered via Customers / Vendors â£ Payments , it is not
directly linked to an invoice or bill.
Payments that are not linked to an invoice or bill should not be registered without using outstanding accounts , as there is no way to
associate the payment with the invoice or bill since no journal entry is created for the
payment. The amount paid or received is not reflected in the accounting and the Amount Due is not updated based on the payment amount.
Instead, the paymentâs journal entry matches the outstanding account with the
account receivable or the account payable until the payment is manually matched with its
related invoice or bill. Then, reconciling the payment with the
bank transaction completes the payment workflow.

### Payments matching

During the bank reconciliation process, a remaining balance is
identified if the total debits and credits do not match when records are compared with bank
transactions. This balance must either be reconciled later or written off immediately.

#### For a single invoice or bill

By default, payments in Odoo do not create journal entries. As a result, there is no payment
to match.
A blue banner appears when validating a new invoice/bill and an outstanding payment exists
for this specific customer or vendor. To match it with the invoice or bill, click Add under Outstanding Credits or Outstanding Debits .
The invoice or bill is then marked as In payment until the payment is reconciled with its corresponding bank transaction(s) .

#### For multiple invoices or bills

By default, payments in Odoo do not create journal entries. As a result, there is no payment
to match, but this feature can still be used to match miscellaneous journal items.
The Payments matching or Auto-reconcile tool allows reconciling
journal items with each other (i.e., payments with customer invoices or vendor bills) either
individually or in batches. Access the Accounting Dashboard , click the ( ellipsis ) button from the Customer
Invoices or Vendor Bills journals, and select Payments Matching .
Alternatively, go to Accounting â£ Accounting â£ Reconcile .
To manually Reconcile journal items, select the individual items from the list
view and click Reconcile .
To use the Auto-Reconcile feature, follow these steps:
- In the Journal Items to reconcile list view, click Auto-Reconcile next to the receivable or payable account (or a specific contactâs group of journal items
in that account).
In the Journal Items to reconcile list view, click Auto-Reconcile next to the receivable or payable account (or a specific contactâs group of journal items
in that account).
- In the Reconcile automatically window, click Reconcile .
In the Reconcile automatically window, click Reconcile .
To use the Auto-Reconcile feature, follow these steps:
- In the Journal Items to reconcile list view, click Auto-Reconcile next to the receivable or payable account (or a specific contactâs group of journal items
in that account).
In the Journal Items to reconcile list view, click Auto-Reconcile next to the receivable or payable account (or a specific contactâs group of journal items
in that account).
- In the Reconcile Automatically window, set the Reconcile field depending on how you want to match journal items: Perfect Match : Each debit journal item will be matched with
the corresponding credit journal item of the same value. Clear Accounts : All reconciled journal items will have the same
matching number, as they are selected from the same account.
In the Reconcile Automatically window, set the Reconcile field depending on how you want to match journal items:
- Perfect Match : Each debit journal item will be matched with
the corresponding credit journal item of the same value.
Perfect Match : Each debit journal item will be matched with
the corresponding credit journal item of the same value.
- Clear Accounts : All reconciled journal items will have the same
matching number, as they are selected from the same account.
Clear Accounts : All reconciled journal items will have the same
matching number, as they are selected from the same account.
- Click Reconcile .
Invoices and bills are automatically matched to their corresponding payments and marked as In payment until they are reconciled with their
corresponding bank transactions .

## Registering payments on multiple invoices/credit notes or bills/refunds (group payments)

To register payments on multiple invoices/credit notes or bills/refunds, follow these steps:
- Go to Accounting â£ Customers â£ Invoices/Credit Notes or Accounting â£ Vendors â£ Bills/Refunds .
Go to Accounting â£ Customers â£ Invoices/Credit Notes or Accounting â£ Vendors â£ Bills/Refunds .
- In the list view, click into the search bar, group by Payment Method , select the
relevant invoices/credit notes or bills/refunds and click Pay .
In the list view, click into the search bar, group by Payment Method , select the
relevant invoices/credit notes or bills/refunds and click Pay .
- In the Pay window, select the Journal and the Payment Date .
In the Pay window, select the Journal and the Payment Date .
- If previously set, the contactâs preferred Payment Method is automatically selected
by default but can be updated if necessary.
If previously set, the contactâs preferred Payment Method is automatically selected
by default but can be updated if necessary.
- If using payment terms , the Amount is
automatically set based on the installment amounts defined by the payment term. To pay the full
amount instead, click full amount .
If using payment terms , the Amount is
automatically set based on the installment amounts defined by the payment term. To pay the full
amount instead, click full amount .
- To combine all payments from the same contact into a single payment, enable the Group
Payments option, or leave it unchecked to create separate payments.
To combine all payments from the same contact into a single payment, enable the Group
Payments option, or leave it unchecked to create separate payments.
- Click Create payment .
Click Create payment .
The invoices or bills are then marked as In payment until they are reconciled with the bank transactions.
The invoices or bills are then marked as In payment until the bank transactions
are reconciled with the payments.

## Registering a single payment for multiple customers or vendors (batch payments)

Batch payments allow grouping payments from multiple customers to ease reconciliation . They are also useful when depositing checks or cash payments to the bank or for generating bank payment files such
as SEPA or NACHA .

### Payments matching

The Payments matching tool opens all unreconciled journal items and allows them to be
processed individually, matching all payments and journal items. Go to the Accounting Dashboard , go to Accounting â£ Accounting â£ Reconcile or
click the ( ellipsis ) button from the Customer
Invoices or Vendor Bills journals, and select Payments Matching .
During the reconciliation , if the sum of the debits and credits does
not match, there is a remaining balance. This either needs to be reconciled at a later date or
written off directly.

## Registering a partial payment

To register a partial payment, click on Pay from the related invoice or bill.
In the case of a partial payment (when the Amount paid is less than the total
remaining amount on the invoice or the bill), fill in the Amount in the Pay window.
In the case of a partial payment (when the Amount paid is less than the total
remaining amount on the invoice or the bill), the Payment Difference field
displays the outstanding balance. There are two options:
- Keep open : Keep the invoice or the bill open and mark it with a Partial banner;
Keep open : Keep the invoice or the bill open and mark it with a Partial banner;
- Mark as fully paid : Select an account in the Post Difference In field and change the Label if needed. A journal entry will be created to balance
the accounts payable or receivable with the selected account.
Mark as fully paid : Select an account in the Post Difference In field and change the Label if needed. A journal entry will be created to balance
the accounts payable or receivable with the selected account.

## Reconciling payments with bank transactions

Once a payment has been registered, the status of the invoice or bill is In
payment . The next step is reconciling the related bank
transaction line with the invoice or bill to finalize the payment
workflow and mark the invoice or bill as Paid .
Once a payment has been registered, the status of the invoice or bill is In
payment . The next step is reconciling the payment with the
related bank transaction line to finalize the payment workflow and
mark the invoice or bill as Paid .


Batch payments

# Batch payments

Batch payments allow grouping payments from multiple customers or vendors into a single batch and
generating a detailed deposit slip or payment file with a batch reference. This reference can be
used during reconciliation to match bank transactions with the
corresponding payments. This feature is particularly useful for submitting SEPA Direct Debit
payments , depositing cash payments or checks , or
generating outgoing payment files, such as SEPA or NACHA .

## Configuration

To enable batch payments, go to Accounting â£ Configuration â£ Settings , scroll
down to the Customer Payments section, and enable Batch Payments .

## Batch creation

To create a batch payment, follow these steps:
- Make sure all payments to be included in the batch have been registered .
Make sure all payments to be included in the batch have been registered .
- Go to Accounting â£ Customers â£ Payments .
Go to Accounting â£ Customers â£ Payments .
- Select the payments to include in the batch. Note All payments in the batch must use the same payment method. If needed, payments can be grouped
using the Payment Method Line .
Select the payments to include in the batch.
All payments in the batch must use the same payment method. If needed, payments can be grouped
using the Payment Method Line .
- Click Create batch or click Actions and select Create batch payment .
Click Create batch or click Actions and select Create batch payment .
- In the batch payment form, review the selected payments. If any individual payments were missed,
click Add a line and select the missing payments to be included in the batch.
In the batch payment form, review the selected payments. If any individual payments were missed,
click Add a line and select the missing payments to be included in the batch.
- Once all relevant payments are included, click Validate to finalize the batch.
Once all relevant payments are included, click Validate to finalize the batch.
Once validated, no additional payments can be added to a batch.
- Click Print to download a list of the included payments.
Click Print to download a list of the included payments.
- To view existing batch payments, go to Accounting â£ Customers â£ Batch
Payments .
To view existing batch payments, go to Accounting â£ Customers â£ Batch
Payments .

### Bank reconciliation

Once the bank transactions have been created in your database, you can reconcile them with the batch payment .
- Payments
- SEPA Direct Debit (SDD) customer payments
SEPA Direct Debit (SDD) customer payments

Configuration
Batch creation
Bank reconciliation


# SEPA Direct Debit (SDD) customer payments

SEPA (Single Euro Payments Area) is a payment-integration initiative of the European Union that
facilitates standardized and simplified electronic payments in euros across participating countries.
With SEPA Direct Debit (SDD), customers sign a mandate that authorizes you to collect future
payments from their bank accounts. This is particularly useful for recurring payments based on a subscription .
You can record customer SDD mandates in Odoo and generate XML files listing payments to be
collected with the mandates. Uploading these files to your bank instructs them to collect these payments from your customers.
- SDD is supported by all SEPA countries, which includes the 27 member states of the European
Union as well as additional countries.
SDD is supported by all SEPA countries, which includes the 27 member states of the European
Union as well as additional countries.
- List of all SEPA countries .
List of all SEPA countries .

## Configuration

### Creditor identifier

To enable SDD for customer payments, go to Accounting â£ Configuration â£
Settings , scroll to the Customer Payments section, enable SEPA Direct Debit
(SDD) , and click Save . Then, scroll to the Customer Payments section again,
set the companyâs Creditor Identifier , and click Save .
The creditor identifier is provided by your bank or the authority responsible for delivering
them in your country. For testing purposes, you can use the test creditor identifier DE98ZZZ09999999999 .
`DE98ZZZ09999999999`

### PAIN file version

By default, the SEPA-compliant XML files generated by Odoo
use the SDD PAIN.008.001.02 format. If your bank requires the updated 2023
version, go to Accounting â£ Configuration â£ Journals and select the Bank journal. Then, in the Incoming Payments tab, set the SEPA
Pain version field to Updated 2023 (Pain 008.001.08) .
SEPA Direct Debit Core Customer-to-PSP Implementation Guidelines .

## SEPA Direct Debit Mandates

An SDD mandate is a legal document authorizing a company to debit funds from a customerâs bank
account. It includes key information, such as the customerâs name and IBAN, the mandateâs start
and end date, and the mandateâs unique identifier. The mandate form must be filled in and signed by
the customer.

### Creating mandates

To create an SDD mandate:
- Go to Accounting â£ Customers â£ Direct Debit Mandates .
Go to Accounting â£ Customers â£ Direct Debit Mandates .
- Click New and fill out the fields.
Click New and fill out the fields.
- Click Send & Print , optionally edit the email, then click Send & Print to email the mandate form to the customer for signature.
Click Send & Print , optionally edit the email, then click Send & Print to email the mandate form to the customer for signature.
- Click Validate to activate the mandate.
Click Validate to activate the mandate.
A valid IBAN must be defined in the Account Number field of the bank journal used to receive SDD payments for the mandate.
- To print the mandate form after the mandate has been validated, click the ( gear ) icon, then select Mandate form .
To print the mandate form after the mandate has been validated, click the ( gear ) icon, then select Mandate form .
- The SDD Scheme depends on the type of customer: Select CORE for B2C
customers and B2B for B2B customers.
The SDD Scheme depends on the type of customer: Select CORE for B2C
customers and B2B for B2B customers.
- SDD mandates are created automatically for online payments made with SDD .
SDD mandates are created automatically for online payments made with SDD .
Once an SDD mandate is active, subsequent SDD payments can be generated via Odoo and uploaded to your online banking interface . Customers with an
active SDD mandate can also use this payment method for online purchases .

### Closing or revoking a mandate

SDD mandates are closed automatically after their End Date . If this field is
left empty, the mandate remains active until it is closed or revoked. To close or revoke a mandate,
go to Accounting â£ Customers â£ Direct Debit Mandates , select the relevant
mandate, and click Close or Revoke .
Closing a mandate updates the mandateâs end date to the current day. Invoices issued after the
present day will not be processed with an SDD payment. Revoking a mandate disables the
mandate immediately. No SDD payment can be registered anymore, regardless of the invoiceâs
date. However, payments that have already been registered are still included in the next SDD
XML file .
- Mandates are automatically closed 36 months after the date of the last collection.
Mandates are automatically closed 36 months after the date of the last collection.
- Closed or revoked mandates cannot be reactivated.
Closed or revoked mandates cannot be reactivated.

## ProcessingSDDpayments

All registered SDD payments can be processed at once by uploading an XML file containing a batch
of all posted SDD payments to your online banking interface. To do so, follow these steps:
- Create a batch payment and include the SDD payments to
collect. Tip You can filter payments by SDD scheme using the SDD CORE and SDD B2B filters.
Create a batch payment and include the SDD payments to
collect.
You can filter payments by SDD scheme using the SDD CORE and SDD B2B filters.
- Validate the batch payment. The XML file is generated automatically and available
for download in the chatter.
Validate the batch payment. The XML file is generated automatically and available
for download in the chatter.
- Download the XML file and upload it to your online banking interface to process the payments.
Download the XML file and upload it to your online banking interface to process the payments.
- Once the SDD batch payment has been received, reconcile the transaction with the batch payment to mark the related invoices as Paid .
Once the SDD batch payment has been received, reconcile the transaction with the batch payment to mark the related invoices as Paid .
- To view the payments and invoices linked to a specific SDD mandate, click the Collections and Invoices Paid smart button on the Direct Debit
Mandate form.
To view the payments and invoices linked to a specific SDD mandate, click the Collections and Invoices Paid smart button on the Direct Debit
Mandate form.
- Click Re-generate Export file in the batch payment form to regenerate the XML file.
Click Re-generate Export file in the batch payment form to regenerate the XML file.
- Batch payments
- SEPA Direct Debit for online payments
SEPA Direct Debit for online payments
- SEPA guidelines

## SDDrejections

SDD rejections can occur for several reasons, the most common being insufficient funds in the
customerâs account. With SDD , the recipientâs account is credited before the funds are actually
debited from the customerâs account. As a result, if an SDD payment is later rejected, the bank
automatically withdraws the amount of that payment from the recipientâs account, and a new
transaction for a negative amount is created to reflect the SDD rejection.
SDD rejections are handled differently depending on whether outstanding accounts are configured or not for the SDD payment method.
The following procedures assume that the incoming SDD paymentâs bank transaction has already
been reconciled with the payments or invoices.
If no outstanding accounts are configured
for the SDD payment method, no journal entry is created. In this case, you must cancel and
unreconcile the payment.
- Access the invoice linked to the rejected SDD payment.
Access the invoice linked to the rejected SDD payment.
- Click the Payments smart button to access the payment associated with the
invoice.
Click the Payments smart button to access the payment associated with the
invoice.
- Click Reset to draft , then Cancel .
Click Reset to draft , then Cancel .
- Go back to the invoice and click the (information) icon
in the footer of the Invoice Lines tab, then click Unreconcile .
Go back to the invoice and click the (information) icon
in the footer of the Invoice Lines tab, then click Unreconcile .
- Access the bank journalâs reconciliation view and reconcile the transaction created for the SDD rejection with the debit (negative journal item) to the account receivable on the
incoming bank transaction.
Access the bank journalâs reconciliation view and reconcile the transaction created for the SDD rejection with the debit (negative journal item) to the account receivable on the
incoming bank transaction.
If an outstanding account is set on the SDD payment method, SDD payments create journal entries. If an SDD payment is rejected,
you must reverse the journal entry associated with the rejected payment and reconcile the
reversal of the journal entry with the transaction for the SDD rejection. To do so, follow
these steps:
- Access the invoice linked to the rejected SDD payment.
Access the invoice linked to the rejected SDD payment.
- Click the (information) icon in the footer of the Invoice Lines tab, then click View to access the payment associated
with the invoice.
Click the (information) icon in the footer of the Invoice Lines tab, then click View to access the payment associated
with the invoice.
- Click the Journal entry smart button to access the related journal entry.
Click the Journal entry smart button to access the related journal entry.
- Click Reverse entry , optionally edit the fields in the popup, then click Reverse . A reversal entry is created with a Reference mentioning
the initial journal entry. As a result, the invoice is marked as Not paid .
Click Reverse entry , optionally edit the fields in the popup, then click Reverse . A reversal entry is created with a Reference mentioning
the initial journal entry. As a result, the invoice is marked as Not paid .
- Access the bank journalâs reconciliation view and reconcile the transaction created for the SDD rejection with the reversal of the entry related to the payment.
Access the bank journalâs reconciliation view and reconcile the transaction created for the SDD rejection with the reversal of the entry related to the payment.

Configuration
Creditor identifier
PAIN file version
SEPA Direct Debit Mandates
Creating mandates
Closing or revoking a mandate
ProcessingSDDpayments
SDDrejections


Follow-up on invoices

# Follow-up on invoices

Follow-up messages can be sent to customers when payments are overdue. Odoo helps identify late
payments and allows scheduling and sending the appropriate reminders using follow-up actions according to the number of overdue days. Follow-ups can be sent through different methods, including
email, post, or SMS.
- Odoo Tutorials: Payment Follow-up
Odoo Tutorials: Payment Follow-up
- Payment terms and installment plans
Payment terms and installment plans

## Configuration

To configure Follow-up actions , go to Accounting â£ Configuration
â£ Follow-up Levels . In the Follow-up Levels list view, several follow-up levels and
actions are configured by default.
To modify a follow-up level, click on the record. From the form view, edit the Description or adjust the number of days before a reminder is sent. In the Notification tab, select Actions such as Send Email , Send
a Letter , and Send SMS Message .
Sending letters or SMS messages in Odoo requires In-App Purchase (IAP) credit or tokens.
To use a pre-filled template when sending an email or letter, select a Content Template .
To modify it, click the (internal link arrow) icon next to the Content Template field. If enabled, SMS messages use a specific Sms Template field that can be modified by clicking the (internal link arrow) icon.
Other options can be enabled in the Options section within the specific follow-up level:
- Automate the reminder with the Automatic option.
Automate the reminder with the Automatic option.
- Attach Invoices that are overdue in the reminder.
Attach Invoices that are overdue in the reminder.
- Add followers on the related customer to receive notifications about any email reply
made on the reminderâs email.
Add followers on the related customer to receive notifications about any email reply
made on the reminderâs email.
In the Activity tab, enable the option to automatically schedule activities when the follow-up level is triggered. Select the Responsible user and the Activity Type , and enter a Summary .
To add a new Follow-up Level , click New and fill in the fields.
Set a negative number of days to send a reminder before the invoice due date.

## Invoice follow-ups

Reconcile all bank transactions before starting the follow-up process to avoid sending reminders
for invoices that have already been paid.
To view all overdue invoices, go to Accounting â£ Customers â£ Invoices . In the Invoices list view, click into the search bar and filter on Overdue .

### Follow-ups for one customer

For a detailed overview of a customerâs invoice follow-up status, go to Accounting
â£ Customers â£ Customers . Open the customerâs form and click the Accounting tab. In
the Invoice follow-ups section, click on the different levels to view the Follow-up Status of each level. If actions are needed, click Overdue
Invoices to have a detailed list of the overdue invoices.
Additional options can be set:
- Reminders : These are either Automatic or Manual .
Reminders : These are either Automatic or Manual .
- Next reminder : The date by which the next follow-up actions should be taken is
automatically set when follow-ups are processed, but can be manually adjusted if needed.
Next reminder : The date by which the next follow-up actions should be taken is
automatically set when follow-ups are processed, but can be manually adjusted if needed.
- Responsible : The user who handles the follow-up actions.
Responsible : The user who handles the follow-up actions.
To manually send a payment reminder to a customer, click Send and select the actions in
the Send and Print window:
- By post
Enable the Attach Invoices option and change the Content Template if needed.
Then, click Send or Send & Print to send the follow-up report .
In-app purchases (IAP)
- The contact information on the invoice or the contact form is used to send the reminder.
The contact information on the invoice or the contact form is used to send the reminder.
- The chatter keeps a full record of all follow-up actions.
The chatter keeps a full record of all follow-up actions.

### Follow-ups for all customers due for action

After setting up the additional follow-up options, review which customers have
overdue invoices or require follow-up. To do so, go to Accounting â£ Customers â£
Customers . In the Customers kanban view, click the search bar and filter by Overdue Invoices or Requires Follow-up .
To take follow-up actions for all relevant customers, switch to the list view and select the
customers requiring follow-up. Then, click (Actions) and select Process Follow-ups to send them the follow-up report .

## Reports

### Customer statement

To get a comprehensive overview of a customerâs account status, click the Customer
Statement smart button on the customerâs form. This statement corresponds to the Partner
Ledger reportâs portion specific to that customer.
To send it to the customer, click Send , change the Email Template if needed,
and click Print & Send .
To view the customer statements for multiple customers at once, select the customers from the Customers list view, click (Actions) , and select Open Customer Statements .
Click PDF or XLSX to generate a PDF or XLSX file, respectively.

### Follow-up report

To get a complete overview of a customerâs due invoices, separating those that are due from those
that are overdue, click the Customer Statement smart button on the customerâs form. Then, click Report: Customer
Statement and select Follow-Up Report .
To view the follow-up report for all customers at once, go to Accounting â£
Reporting â£ Partner Ledger . Then, click Report: and select Follow-Up Report .
Click PDF or XLSX to generate a PDF or XLSX file, respectively.


Forecast future bills to pay

# Forecast future bills to pay

In Odoo, you can manage payments by setting automatic Payments Terms and follow-ups .

## Configuration: payment terms

In order to track vendor conditions, we use Payment Terms in Odoo. They allow keeping track of
due dates on invoices. Examples of Payment Terms are:
- 50% within 30 days
- 50% within 45 days
To create them, go to Accounting â£ Configuration â£ Invoicing: Payment Terms and
click on Create to add new terms or click existing ones to modify them.
Odoo Tutorials: Payment Terms
Once Payment Terms are defined, you can assign them to your vendor by default. To do so, go to Vendors â£ Vendors , select a vendor, click the Sales & Purchase tab,
and select a specific Payment Term . This way, every time you purchase from this vendor, Odoo
automatically proposes the chosen Payment Term.
If you do not set a specific Payment Term on a vendor, you can still set one on the vendor bill.

## Forecast bills to pay with the aged payable report

To track amounts to be paid to the vendors, use the Aged Payable report. To access it, go to Accounting â£ Reporting â£ Partner Reports: Aged Payable . This report gives you a
summary per vendor of the amounts to pay, compared to their due date (the due date being computed on
each bill using the terms). This report tells you how much you will have to pay within the following
months.

## Select bills to pay

You can get a list of all your vendor bills by going to Vendors â£ Bills . To view
only the bills that you need to pay, click Filters â£ Bills to Pay . To view only
overdue payments, select the Overdue filter instead.
You can also group bills by their due date by clicking Group By â£ Due Date and
selecting a time period.


Online payments

# Online payments

To make it more convenient for your customers to pay the invoices you issue, you can activate the Invoice Online Payment feature, which adds a Pay Now button on their Customer Portal . This
allows your customers to see their invoices online and pay directly with their favorite payment
method, making the payment process much easier.

## Configuration

Make sure your payment providers are correctly configured .
By default, â Wire Transfer â is the
only payment provider activated, but you still have to fill out the payment details.
To activate the Invoice Online Payment, go to Accounting â£ Configuration â£
Settings â£ Customer Payments , enable Invoice Online Payment , and click on Save .

## Customer Portal

After issuing the invoice, click on Send and send the invoice by email to the customer.
They will receive an email with a link that redirects them to the invoice on their Customer
Portal .
They can choose which Payment Provider to use by clicking on Pay Now .
- Online payments


Pay by checks

# Pay by checks

Once you decide to pay a supplier bill, you can select to pay by check. You can then print all the
payments registered by check. Finally, the bank reconciliation process will match the checks you
sent to suppliers with actual bank statements.

## Configuration

### Activate checks payment methods

To activate the checks payment method, go to Accounting â£ Configuration â£
Settings , and scroll down to the Vendor Payments section. There, you can activate the
payment method as well as set up the Check Layout .
- Once the Checks setting is activated, the Checks payment method is
automatically set up in the Outgoing Payments tabs of bank journals.
Once the Checks setting is activated, the Checks payment method is
automatically set up in the Outgoing Payments tabs of bank journals.
- Some countries require specific modules to print checks; such modules may be installed by
default. For instance, the U.S. Checks Layout module is required to print U.S.
checks.
Some countries require specific modules to print checks; such modules may be installed by
default. For instance, the U.S. Checks Layout module is required to print U.S.
checks.

## Compatible check stationery for printing checks

### United States

For the United States, Odoo supports by default the check formats of:
- Quickbooks & Quicken : check on top, stubs in the middle and bottom;
Quickbooks & Quicken : check on top, stubs in the middle and bottom;
- Peachtree : check in the middle, stubs on top and bottom;
Peachtree : check in the middle, stubs on top and bottom;
- ADP : check in the bottom, and stubs on the top.
ADP : check in the bottom, and stubs on the top.

## Pay a supplier bill with a check

Paying a supplier with a check is done in three steps:
- registering a payment
registering a payment
- printing checks in batch for all registered payments
printing checks in batch for all registered payments
- reconciling bank statements
reconciling bank statements

### Register a payment by check

To register a payment, open any supplier bill from the menu Purchases â£ Vendor
Bills .
Once the supplier bill is validated, you can register a payment. Set the Payment Method to Checks and validate the payment.

### Print checks

On your Accounting Dashboard in the Bank Journal, you can see the
number of checks registered. By clicking on Checks to print you have got the possibility
to print the reconciled checks.
To print all checks in batch, select all payments from the list view and click on Print .


Pay with SEPA

# Pay with SEPA

SEPA, the Single Euro Payments Area, is a payment-integration initiative of the European Union to
simplify bank transfers denominated in euros. SEPA allows you to send payment orders to your
bank to automate bank wire transfers.
SEPA is supported by the banks of the 27 EU member states, as well as:
- Iceland;
- Liechtenstein;
- Norway;
- Switzerland.
Non-EEA SEPA countries:
- Andorra;
- Monaco;
- San Marino;
- United Kingdom;
- Vatican City State.
- Saint-Pierre-et-Miquelon;
Saint-Pierre-et-Miquelon;
- Guernsey;
- Jersey;
- Isle of Man.
When paying a bill in Odoo, you can select SEPA mandates as a payment option. At the end of the day,
you can generate the SEPA file containing all bank wire transfers and upload it to your online
banking interface to process the payments.
By default, the file follows the SEPA Credit Transfer âpain.001.001.03â specifications. This is
a well-defined standard among banks. However, for Swiss and German companies, other formats are used âpain.001.001.03.ch.02â for Switzerland and âpain.001.003.03â for Germany.
Once the payments are processed by your bank, you can directly import the account statement in
Odoo. The bank reconciliation process will seamlessly match the SEPA orders you sent to your bank
with actual bank statements.

## Configuration

### Activate SEPA Credit Transfer (SCT)

To pay suppliers with SEPA, you must activate the SEPA Credit Transfer setting. To do so, go to Accounting â£ Configuration â£ Settings â£ Vendor Payments: SEPA Credit Transfer
(SCT) . By activating the setting and filling out your company data, you will be able to use the
SCT option when paying your vendor.
According to the localization package installed, the SEPA Direct Debit and SEPA Credit
Transfer modules may be installed by default. If not, they need to be installed .

### Activate SEPA payment methods on banks

From the accounting dashboard, click on the drop-down menu ( â® ) on your bank journal and
select Configuration . Click the Outgoing Payments tab, and, if not already
present, add SEPA Credit Transfer under Payment Method .
Make sure to specify the IBAN account number (domestic account numbers do not work with SEPA) and
the BIC (bank identifier code) in the Journal Entries tab.

### Registering payments

You can register any vendor payments made with SEPA. To do so, go to Accounting â£
Vendors â£ Payments . When creating your payment, select SEPA Credit Transfer as the Payment Method .
The first time you pay a vendor with SEPA, you have to fill in the Recipient Bank
Account field with the bank name, IBAN, and BIC (Bank Identifier Code). Odoo automatically verifies
if the IBAN format is respected.
For future payments to this vendor, Odoo will automatically suggest you the bank account, but it
remains possible to select a new one.
Once your payment is registered, do not forget to confirm it. You can also pay vendor bills from the
bill directly using the Register Payment button at the top of a vendor bill.
The form is the same, but the payment is directly linked to the bill and will be automatically
reconciled with it.

Configuration
Activate SEPA Credit Transfer (SCT)
Activate SEPA payment methods on banks
Registering payments


Trusted accounts (send money)

# Trusted accounts (send money)

To protect users from sending money to scammers, vendor bank account numbers must be marked as
trusted before you can use them to make an outgoing payment.
To do so, open the vendor bank account and click on the Send Money toggle switch button.
All accounts are initially marked as untrusted.

## Phishing attacks

A phishing attack is an online scam designed to trick individuals or companies into giving away
sensitive information or money by sending out fraudulent communication. Fraudsters pretend to be
legitimate companies and may use partial information to give credibility to their requests.
There are several types of phishing attacks, including invoice fraud . In this case, the
fraudster pretends to be a genuine supplier following up on unpaid bills or sending a new invoice,
but with different payment information than usual and with fake contact details.
To protect yourself from these types of phishing attacks, remain vigilant when you receive
unexpected invoices or payment requests.
In case of doubt, we recommend contacting the vendor by phone . Make sure to call an official
phone number by searching yourself, as the URLs, email addresses, and phone numbers written in
the communication you received may be fake.

### Elements to check

There are several elements you can check by yourself when you receive an outgoing payment request to
a new account:
Fraudulent emails and invoices often use a different communication style, such as different
wording , and may include spelling and grammatical mistakes . Examine and compare them
with previous ones that you know to be authentic (e.g., payment instructions, language, company
logo, etc.).*
Invoice frauds often use urgent or threatening language and change the payment deadline .
Check if you really received a late payment reminder previously.
A company is unlikely to replace a bank account with a money transfer service .
Double-check the email address domain ( example@domain.com ). However, be wary that fraudsters
can make their email addresses look genuine or even hack email addresses from your vendorâs
employees or even someone within your own organization.
`example@domain.com`
Hover over the links in your email and check that the URLs they redirect to are genuine. Your
internet browser usually displays the linkâs target at the bottom left of the window.