To successfully manage its accounting processes, a company may need to manage multiple accounts. Businesses frequently begin with a preset chart of accounts to speed up the process.
A chart of accounts will comprise every account used by the business to perform various accounting functions. A default chart of accounts can assist a business get started with its accounting process.
It will cover the most commonly used accounts, which are suitable for meeting the majority of the company’s requirements. You can later expand your chart of accounts and include more accounts in the processes.
You may create a basic chart of accounts for business operations with the powerful Odoo 17 accounting software. This chart can be customized to manage many components such as profit, loss, and balance sheets.
Odoo allows you to add new accounts based on your requirements. In addition to the default chart of accounts, you can create and use your own to meet your specific needs. The open-source Odoo software's comprehensive Accounting module simplifies these tasks.
Setting up default accounts in Odoo 17 this blog covers accounting for a variety of accounting functions.
Steps to Set Up Default Accounts in Odoo 17 Accounting
To create default accounts in Odoo Accounting, you must first define the required database accounts. The module’s configuration menu includes the chart of accounts option, which allows you to add and manage accounts.
Chart of Accounts
To view the available list of charts of accounts, select the right choice from the configuration menu. The window will display a list of all accounts used in an organization’s general ledger to record various financial transactions.
In essence, the accounts on the list will document every financial transaction done by a business. Odoo allows you to manage your existing accounts and create new ones directly from this platform, depending on your needs.
The list preview displays the code, account name, type, allow reconciliation, account currency, and company information.
The account type chosen in the type box determines the criteria for concluding a fiscal year, writing opening entries, and preparing legal reports specific to a country.
To enable accounts to match journal entries with invoices and payments, check the Allow Reconciliation option.
Receivable, Payable, Equity, Assets, Liability, Income, Expenses, Accounts with Entries, and Active Accounts are the default criteria for the Chart of Accounts. The accounts can be arranged according to Account Type.
Create more personalized filtering and grouping options by selecting Add Custom Filter and Add Custom Group, respectively.
You can add a new account to the list of available accounts by clicking the New button. When you select the New button to enter your account information, a new line will appear.
In the designated fields, insert the Code, Account Name, Type, Account Currency, and Company. The Setup option allows you to edit your account's details.
The balance smart button displays the account’s debit and credit balance. You can add tags to the supplied field to help you create personalized reports.
The allowed journals section allows you to select which journal you want to use this account in. If you want to use the same field in your diaries, leave it blank. This is how new accounts are made in the Chart of Accounts.
Related Post: How to Manage Journal Entries & Items in Odoo 17 Accounting
Default Accounts
After you’ve set up the important accounts to conduct the majority of your accounting activities, you can now create default accounts for specific operations.
To do this, go to the accounting module’s settings menu. Default accounts is a dedicated tab that displays the default accounts for various accounting functions.
The Journal, Gain Account, and Loss Account columns allow you to define the default accounts used to submit exchange difference entries.
Also, tabs can be used to add default accounts related to specialized capabilities. They’re listed below.
Bank Suspense Accounts:
The suspense account, included in the general ledger, acts as a temporary holding field for transactions when it is unclear which account should be used to record them.
Outstanding Accounts:
When you manually enter a payment, the outstanding receipts and payment accounts are used instead of the real bank account. In these cases, you must reconcile the payment to the applicable bank statement and the invoice or bill.
Internal Transfer Accounts:
The company’s internal transfer account will monitor internal financial transfers.
Cash Discount Gain/Loss Accounts:
The default cash discount accounts will record the profit and loss from the cash discounts.
Once the default accounts for the designated functions have been specified, click the save button to implement the new changes. In the most recent Odoo 17 accounting module, you can set default accounts in this way to streamline your accounting processes.
