Business Technology & Consulting 

Chart of accounts that models your financial sttements

Chart Of Accounts(COA) is simply a list of all accounts, a company/firm or organization might need to record all its various business transactions. It helps 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 financial activities represents different aspects of the company’s financial situation.
In Odoo, account types are automatically created when installing a chart of account. By default, Odoo provides a lot of chart of accounts, It allows to install one related to the specific country. Therefore, no need to create new account types. The most common basic nature of financial activities are Assets, Liability, Equity, Income and Expense.


The bellow list are the account types used in Odoo:
1. Assets
    Receivables – Record funds owed to you
    Prepayments – Record any payment made in advance of the goods/services being received later on
    Current assets – Record assets that can be reasonably expected to be converted into cash within one year
    Fixed Assets – Record assets and property that cannot be easily converted into cash
    Non-current assets – Long term investments where the full value will not be realized within the accounting year
    Bank and Cash – Record bank and cash transfer transactions

2. Liability
    Payable – Record funds you owe
    Current Liabilities – Financial obligations that are payable within one year
    Non-current Liabilities – Financial obligations that will not become due within the accounting year

3. Equity
    Equity – Record capital gains and losses
    Current Year Earnings – Record net income or loss for a company within the current year

4. Income
     Income – Record revenue of business earns
     Other Income – Record income that does not come from a company’s main business

Expenses
    Expenses – Record outflow of funds to pay for goods and services of business uses
    Direct Costs – Record total cost incurred to obtain a sale and the cost of the goods or services sold
    Depreciation – Record how the value of an asset declines over time
 
Configuring Chart of Accounts in Odoo - Adding / editing or removing chart of accounts
Opening the accounting application to get started chart of accounts in Odoo. Under Configurations, navigate and click chart of accounts on the accounting section.

chart of acc1

You will see a list view of all accounts. From here you can create, edit and remove accounts as per the needs.

chrt of acc2

To create an account click the create button.

chrt of acc3

When you click the create button, you will get the following window.

COA

The following fields are required when creating an account:
Code:
The account code is the unique identifier of the account. Account code will be generated depends on 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 type of account is the most important detail needed while creating the accounts in Odoo chart of accounts. Because this will decide how this account will impact the company’s financial statements. It is also necessary to generate country-specific legal reports and to set the rules for closing the fiscal year and to generate the opening entries.
When finished, click the Save button.

chartofacc4

To edit an existing account, click on the account you wish to edit and then click the Edit button.

When you click on the edit button you will get this window. Change the various fields, as needed. Then click the Save button. eg edit Transport Expenses to Travel Expenses

chartofacc6

To delete an account, select the checkbox next to the account’s code. Then, click the Action drop-down menu and select ‘Delete’.

select delete

You can also view or/and print the report of any accounts in Odoo. There are three types of reports,
    Partner Ledger: The sales invoices that were awaiting payment
    General Ledger: All transactions during a chosen period
    Trial Balance: Closing balances of account on a specified date
 To view or print the reports, From reporting menu, select any of the above-mentioned reports of which you want to print.

reporting

Singo Africa Limited as official Odoo Partner in Tanzania is here to help you with Odoo Projects, We are ready to work and help you with Odoo into the revolutionary paradigm of your company, again, have flexible chart of accounts helps you getting flexible reports hence easy decision-making process. Join more than 4 Million happy people worldwide who trust and uses Odoo for the sake of their business expansions and growth.

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