Odoo Chart of Accounts | Configuration | Set up

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Odoo Chart of Accounts | Configuration | Set up

odoo chart of accounts module configuration

Odoo Chart of Accounts | Configuration | Set up

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Chart of accounts is one of the essential functions of any ERP software and if you are not using any external accounting system other than your ERP software understanding chart of account before accounting module set up is important. A chart of accounts also called as COA acts as a tool for finance department of the organization that list every account in the system. An account is a unique record for each type of asset, liability, equity, revenue and expense.

A COA, which lists the names of the accounts that a company has identified and made available for recording transactions in its general ledger, establishes the level of detail tracked in a record-keeping system. Typically, a COA contains the accounts’ names, brief descriptions and identification codes.

What is Odoo Chart of Accounts:

A Chart of Accounts in Odoo ERP software is a list of all accounts used in the general ledger of an organization. Every business start with a transaction that is added in to journal entries and from journal entries it goes into ledger accounting that provides you with cumulative numbers of all the various transactions. example : how much you deal in cash, through bank, amount of inventory available, sales made, purchases done and so on… It provides a complete listing of every account in an accounting system. Therefore for each area one need to create unique record for all the transactions and each type of asset, liability, equity, revenue, and expense.

Odoo Chart of accounts is defined in the accounting app / module which acts with the balance sheet or profit and loss accounts. Based on company transactions every company needs with respect to chart of accounts can vary.

A Chart of Accounts is a created list of the accounts used by a businesses to define each class of items for which money is spent or received through. For example, a company may define 1. as assets account, 2. as liability, 3 as expense account and so on…. As you understood the basic concept of accounts lets understand how you can configure Odoo chart of accounting :

Configuration of Odoo Chart of Accounts :

To start with first you need to install the accounting module on your instance which is as showed in the below image :

After you install the Accounting module in Odoo ERP you can start configuring the chart of account for which you need to go into the [Accounting Module > configuration > Chart of Accounts] as showed in the below image:

Basically you can see a list of all accounts. From here you can modify, import, remove, and create accounts as per your needs and requirements

To clarify this view, now you can click on the Group By button and select Account Type.

To Edit an Existing account:

To edit any existing account you can click on an account which you want to open up a short view of the account that displays the Code, Name, and Type. If you want to make any changes then click on the edit button. Once all changes have been completed now click on the Save button.

To delete an existing chart of accounts in Odoo:

To delete an account, select the checkbox next to the account’s code. At that time, click the Action drop-down menu and choose the ‘Delete’ option.

To create a new chart of accounts in Odoo

Now you can create a new account to click on the create button.
Now you can enter the following fields at the same time creating an account like code, name, type, default taxes, group, company, deprecated, etc.

What are Codes in Odoo Chart of Accounts:

Code field indicates the unique identification number of account types and may also be coded with further information if you want to add any extra accounts Example the codes varies.

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

Name: Name field in Odoo COA indicates the name of the account, which shows what types of transactions are divided under this account.

Type: Type field in Odoo COA indicates the type of accounts, which is detailed below in the ‘Choosing an Account Type’ section. Once you fill all fields, you can now click on the Save button.

How COA plays in important role in and ERP software

Chart of Account serves an important purpose in any ERP Accounting module as it segregate expenses, revenue, liability and assets of the company. This allow user to understand the company health financially. A proper Chart of Accounts configuration helps management as well as in powerful reporting to meet the needs of financial management.

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