Introduction

In this article, we will learn about the setup of Chart of Account in Odoo ERP.

Introduction to Chart of Accounts

The chart of accounts is the most important part of your financial system, as it’s what keeps track of all your transactions. It’s like a table in a database where you store information about each asset and liability (accounts) that your business owns or owes money to.

In Odoo ERP, there are five types of charts: Assets (Assets), Liabilities (Liabilities), Equity Capital (Equity Capital), Revenue and Expenses (Revenue & Expense) and Other Current Liabilities/Current Assets (Other Current Liabilities / Other Current Assets).

Chart of Account Setup

The Chart of Accounts is an essential part of your accounting system. It’s the list of accounts you use to track your financial transactions. You can set up a chart of accounts in Odoo by importing one from an existing database or creating one from scratch.

Chart of Account Setup

There are two ways to create a new chart: importing or manually adding items one by one (the latter is called “manual setup”). Importing is easier, but if there are specific changes needed on certain fields (like currency), this option may not be appropriate for you.

Chart of Account Import

If you have a chart of accounts in another system, you can import it into Odoo ERP using the Chart of Accounts Import feature.

You can also import a chart of accounts from an Excel file or an XML file. You can even import XBRL files and CSV files into Odoo ERP if they’re formatted correctly!

Chart of Account Type

• Chart of Account Type is the type of account you are creating.
• There are 5 types of Chart of Accounts: Assets, Liabilities, Equity, Revenue and Expenses.

Chart of Account Journal

When you create your chart of accounts, the Journal is the main account in that chart. It’s used for posting transactions to the general ledger and can be used as a reference account when creating other journals.

In this example, we’ll add a new journal called “Bank” so that we can track deposits made into our bank account. To do this:

• Go to Settings > Accounting > Journals (or go directly via Accounting->Journals).
• Click on Add New Journal at the top right corner of your screen.

Chart of Account Allow Reconciliation

Reconciliation is the process of comparing the balance in your ledger with the balance in your bank statement. It can be done manually or automatically, depending on what kind of account you have set up.

Chart of Accounts allow reconciliation is a feature that allows you to reconcile your chart of accounts.

Conclusion

We hope that this article has helped you understand the basics of how Odoo ERP handles Chart of Accounts. If you want to know more about Odoo and how it can help your business, please contact us today!