Chart Of Accounts In Odoo

Chart Of Accounts In Odoo

Chart Of Accounts(COA) is simply a list of all accounts, a company might need to record all its various business transactions. It helps people to make good financial decisions based on the information that it shows. Chart of accounts in Odoo is included in the accounting field which deals with the balance sheet or profit and loss accounts.

All the financial activities fall under some basic nature. The nature of the financial activities represents different aspects of the company’s financial situation. In Odoo, account types are automatically created when installing a chart of accounts. By default, Odoo provides a lot of charts of accounts, so we can install the one related to the specific country. Therefore, we cannot create new account types. The most common basic nature of financial activities are Assets, Liability, Equity, Income, and Expense.

The following are the account types used in Odoo:

Assets

1. Receivables: Record amounts owed to you by customers or clients.
2. Prepayments: Record payments made in advance for goods or services to be received in the future.
3. Current Assets: Record assets that are expected to be converted into cash within one year.
4. Fixed Assets: Record long-term assets and property that cannot be easily converted into cash, such as buildings and machinery.
5. Non-current Assets: Record long-term investments and assets where the full value will not be realized within the accounting year.
6. Bank and Cash: Record all transactions involving cash and bank transfers.

 

 

Liabilities

1. Payables: Record amounts you owe to suppliers or creditors.
2. Credit Card Debt: Record outstanding balances on credit cards that need to be repaid.
3. Current Liabilities: Record financial obligations that are due to be settled within one year.
4. Non-current Liabilities: Record financial obligations that are not due within the accounting year, such as long-term loans or bonds payable.

Equity

1. Equity: Record the ownership interest in the company, including capital contributions and retained earnings.
2. Current Year Earnings: Record the net income or loss for the company during the current accounting period.

 

 

Profit & Loss

Income

1. Income: Record revenue generated from the primary operations of the business.
2. Other Income: Record income earned from sources outside the company’s main business activities.

Expenses

1. Expenses: Record all outflows of funds for goods and services used in the business.
2. Cost of Revenue: Record the total costs incurred to produce and sell goods or services, including direct costs associated with sales.
3. Depreciation: Record the reduction in value of an asset over time due to wear and tear or obsolescence.

 

 

Configuration of  an account

 

To create a new account, navigate to Accounting > Configuration > Chart of Accounts,

click on new , and fill in the required fields.

 

Code and name

The account code is the unique identifier of the account. Account codes will be generated depending on the company accounting adviser, the number of business units, and many other factors. The following is an example of a generalized accounting code pattern.

 

• Assets Accounts – codes starting from 1000 to 1999
• Equity Accounts – codes starting from 2000 to 2999
• Liability Accounts – codes starting from 3000 to 3999
• Income Accounts – codes starting from 4000 to 4999
• Expense Accounts – codes starting from 5000 to 5999

 

Name: The name of the account, which indicates what types of transactions are classified under this account.

Type: The account type is one of the most important details to consider when creating accounts in the Odoo Chart of Accounts. The type determines how the account will impact the company's financial statements. It is essential for generating country-specific legal reports, setting rules for closing the fiscal year and creating opening entries.

In the Odoo Accounting module, various reports are available to help you analyze financial data and monitor your company's performance. Here are some key reports. We can also print these reports.

Ss7