Odoo Experience 2019 - Advanced Accounting Day 1

1/10/2019

Jon Wilson

Summary:

There are 108 new features in v13. I was expecting some changes but was surprised by what has been added and improved.

Odoo has been working closely with a large accounting firm in Belgium to both design/implement and test a range of features that they and their customers demand. Apart from a complete restructuring of the invoice model, a few of the standout features are:

  • A consolidation module to perform consolidated GL reports across companies at different currency rates and ownership proportions

  • Automatic transfers (disbursements)

  • Accruals

  • Improved deferred income, expenses

  • Re-done and much-improved assets

Some features are generally welcome. However, I would say that Odoo is now appealing to the lager and international companies with this release as it directly addresses financial features required by these companies. All that is now missing is decent financial budgeting which one of the Odoo staff hinted was due for Odoo V14 (for now we are happy with the OCA module “mis_builder”).

If this is not enough, there is a significant improvement in processing speed due both to the refactoring above and optimisations done by Fabien to the ORM.


Detail:

There was a lot to take in today, so I have done my best to summarise with enough detail to make it clearer below.


Refactoring:

The invoice model in previous versions (account.invoice) has been merged with the GL journal model (account.move) in Odoo V13. The main reason given for this is to remove the anomalies and inconsistencies that arise by having an invoice represented in two models, e.g. changing a journal associated with a validated invoice has the possibility of making the invoice and the associated GL journal inconsistent - this is no longer the case in V13 as the invoice and the journal is based on the same underlying data model.


Journal groups: 

Journal groups can be defined such that they can exclude specified journals. I’m not exactly sure of the use-case, but it made sense in the case of capturing expenses to be capitalised in an R&D project which could later be reported for tax purposes:


And then they can be used in reporting:



Automatic Transfers (Disbursements):

There is a new Automatic Transfers option under the “Accounting” menu:


Once created the disbursement transactions can be automatically created from cron jobs or created manually. The full set of disbursements is initially created as draft journals.


New module “Consolidation”


There is a new module called “Consolidation” which allow the consolidation of different company charts of accounts by percentages and currency rates. This can not only be used for consolidating across multiple companies but could potentially be used for creating different versions (or views) of the chart of accounts for different departments, e.g. an operational view or a financial view.

This is a very flexible feature and will be welcomed by larger multi-country, or multi-company, organisations.

It is important to note that this is just a reporting entity and does not in itself have a standard Odoo chart of accounts, but it does have account groups.

You start by defining a “consolidation”, that nominates which companies will be consolidated (note that a “consolidation” can also consolidate other “consolidations”);


Then consolidation “accounts” are defined. Note this links the consolidation “account” to the actual accounts in each company being consolidated:


Then the report is then (re)computed to give the result:


Fixed Assets

  • Create assets based on the account type

  • Get a new overview in a new asset report

  • Generate automated revaluation (+/-)

  • Generate automated disposals

  • Link assets with sales


GL Account


Select the depreciation model - similar to previous versions but now related to the GL account:


Assets can be manually created or automatically created directly from a supplier’s invoice.

Asset revaluations:


Either up or down. The revaluation is considered like another asset but generally depreciated using the parent’s depreciation model.


Sale or Disposals

Via “Sell or Dispose” button: 


Dispose: Generate asset gain or loss amounts and reverse out all asset and depreciation entries. Any draft remaining journal items are deleted.

Sell: you can link the sell to a customer invoice - similar accounts are generated as for “Dispose”.

New asset report that more closely matches the standard depreciation reports used in Australia:



Deferred expenses

  • Create deferred expenses models

  • Generate deferred expenses on existing accounting entries

  • Follow up deferred expenses 

 


Prior to V13

V13
TemplateDeferred Revenue TypeDeferred revenue/expense Model
TriggerDeferred Revenue TypeAccount
ModelCustomer invoiceAny accounting entry
OverviewDeferred revenue Analysis


Steps to generating deferred expenses:


1) Create a deferred expense model:  


2) Created a GL account of type “non-current liability”, and select it to create deferred revenue transactions and assign the deferred expense model: 


3) Create an expense invoice using the deferred expenses account created above:  



A similar process for deferred revenue.


Other

Reconciliation improvements: 

  • Reconcile from aged balance report

  • From bank account: better allocate one payment to several invoices and partial allocations

  • Notes field that brings all info from the electronic data. Reconciliation models can use it

  • Post payments to suspense account that you are not sure of and move later so bank statement can be reconciled

  • Bank reconciliation pdf report that gets attached to the bank statement that can be referred to at any time.


Tax

  • Warning of duplicate partners with the same VAT a/c

  • Easier creation of taxes with associated tax codes for local reporting

  • Can Close a tax statement and summarise opening and closing balances. Now have a tax log date. Eg if sept tax report is closed and you try to enter a tran in sept you will be warned

  • Also generates tax report.

  • New a/c lock dates for taxes (apart from accounting lock dates)


General Ledger

  • Editing is easier. Edit in list view

  • Flag GL journal as “to check” by accountant

  • Chatter added to journals

  • Off-balance sheet accounts - never have an effect on accounting

  • Journals view - clicking on an entry, say an invoice, the associated invoice shows on the right. Similarly with suppliers, bank statements and tax reports etc

  • Account number selection in chart of accounts:


Invoice Refactoring

  • Invoice GL journal entries are immediately available to be reviewed even if the invoice is not validated:


  • Invoices can now be reset to draft by default, however, a journal can be marked so it receives a hash value which indicates that it cannot be changed and even if it is changed in the database the hash values will not be correct. The adviser can change this setting:





  • List views can be customised to show/hide columns:


Tax form changes


Bank Statement (more tomorrow)

  • Partial allocation of payments to invoices within the one recon

  • Payments can be immediately allocated to a suspense account and then later reconciled to the actual invoices.


Accrual entries (more tomorrow)

  • Invoices to receive

  • Invoices to be issued

  • Automate accruals and adapt the original

  • Process invoices normally => create your provisions automatically in the right period


Analytic Accounting

  • Multi-level grouping with correct reporting:



  • A tag used without an analytic account will not create an analytic item in the analytic ledger. However, it will appear in the GL item:



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Jonathan Wilson – Chief Sales and Innovation Executive, WilldooIT

If you are a CFO, MD or CEO of an innovative and forward-thinking organisation seeking a simpler and more effective method of tracking your business performance via integrated ERP and eCommerce software solutions, perhaps I can help.

With over 40 years of verifiable success in the IT industry, including roles as Director of Sales – Odoo and Chief Sales and Innovation Executive at WilldooIT, Managing Director of WillowIT and CTO at Nexus Business Software, I understand the importance of an integrated ERP and eCommerce solution that has the potential to meet the functional processes and financial requirements across all the departments of your organisation.

My skills include partnering with senior leaders of a business to determine business needs, risks and functionality and aligning solutions in support of strategic and tactical objectives to satisfy cost-effective business requirements and deliverables.   


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