How to set up Accounting in Odoo
Complete manual of Spanish accounting in Odoo, updated for the year 2020.
Find out how to use Odoo to keep your company's accounting, and how to correctly configure each section to comply with the Spanish General Accounting Plan (PGCE).
1. Apps, Modules and Initial Setup for Accounting
To begin with, it is essential that you install the Spanish accounting base module, and we recommend that you also install the OCA and its dependencies. The latter add fields and routines that are necessary in many cases, generate the models to be presented directly to the AEAT, and automate specific processes for accounting in Spain:
Spanish Accountiong
Spanish accounting base module, which includes the chart of accounts and establishes the correct values in the customer file by default.
Invoice Modification
It allows the cancellation of seats, and therefore the validated invoices if it has not yet been sent and you need to change some information while maintaining the number.
Credit Note Sequence
It allows to generate separate sequences for rectifying invoices, taking care of generating the corresponding numbers automatically.
Customer Data
Add useful fields in the customer / supplier file and import data from Spanish banks.
Bank Extract
It allows you to import the credits and payments in your bank accounts directly to Odoo, and to reconcile quickly by downloading the "norma 43" file available from almost all banks.
Account Deposit
Automatically generates 7 accounting reports for the deposit of annual accounts in the commercial register (PyG, Balance, Income and expenses) in normal, abbreviated and SME mode.
DUA Import
It generates the accounts, fields, routines and taxes necessary for your import activities.
FACE / Factura-E
Integrate Odoo with the FACE or FACTURA-E system, mandatory for invoices sent to public administrations.
Fixed Assets
It adapts the accounting management of fixed assets to the Spanish accounting (amortizations, apportionment, depreciation and periods).
2. Initial configuration
With all the modules that you are going to use already installed, go to Accounting > Settings > Settings to set the overall behavior you want in your accounting. Go through the options paying particular attention to taxes, currency, rounding methods, and analytical accounting if you are working with projects or services.
It is also important to review the Sales and Purchasing configuration sections, to establish the terms and conditions, and the billing policy in each of them: Quantities ordered (invoice all the products of each order) or quantities delivered (invoice only the quantities that have been delivered). The latter is the one you must select if you operate from Spain.
To finish, we go to the initial configuration tour in the accounting app. Fill in the information of your company (Name, NIF, Tax address and commercial register). Then add your bank accounts, and finally the start and end date for your accounting periods.
3. Opening entry and opening balances
The last step of the journey is entering the opening balances in your ledger accounts, as well as creating the additional accounts you want in your chart of accounts. To create accounting subaccounts, it is best to duplicate your generic account, and change the name and number.The generic PGCE accounts will already be created when you install the localization module for your country, and you have to take into account a big difference between Odoo and other ERP and accounting software that you have used before: it is not necessary to create separate accounts for each client. In Odoo this information is automatically deducted thanks to the fact that sales and purchases are integrated.
To add accounts payable and receivable from previous years that are pending with your customers and suppliers, you can add them in 2 ways:
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Creating pending invoices if they are few, or importing them with the corresponding additional cost of the service.
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Creating accounting entries with the total per client, against the corresponding generic accounts, specifying the company in the field that appears. This option is faster and cheaper.
4. Set up your Invoice journals and their numbering
By default, Odoo numbers all the invoices in an accounting journal with the same sequence, but in Spain it is mandatory to separate the sequence of rectifications and credit notes. In addition, you must create an invoice journal for each different activity that you perform: For example, if you have a potato plantation but also offer consulting services to plan farms, you must separate the sequence of invoices for each activity.
Using a user with Billing Responsible permissions, Show full accounting features and with developer mode enabled:
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Navigate to Accounting / Configuration / Settings / Accounting / Journals
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In the Customer Invoices journal, activate the checkbox "Dedicated sequence of rectifying invoices". Save and do the same for the supplier invoice journal, as well as any other journal for invoices (purchases or sales). In this way a new sequence will appear for your corrective invoices. In Spain, there should be no jumps in the numbering of invoices and entries, so it is mandatory to establish the implementation "No gap" in all the sequences that refer to this type of entity.
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With an Administrator user, navigate to Settings / Technician / Sequences and identifiers / Sequences. Set the prefixes and suffixes you want, keeping at least "% (range_year) s" as this causes the numbering to start over every year. You must also activate "Use subsequences by date_range" so that it behaves as we want.
5. Configure your customers and suppliers
The most important thing here is in the Accounting and Sales and purchases tabs within the customer file:
The tax position, in a normal client it is not necessary to fill it in since the National Regime will be used. In all other cases, this field must be set.
The default account receivable will be 700, and 401 to be paid. Change them to the ones you use the most in your commercial activity to save time introducing customers.
You can also set the customer's bank accounts from this tab.
6. Configure your products
The accounting configuration of your products in Odoo includes 4 important sections:
Taxes: The basic taxes that will be charged to customers by default, as well as those that will be paid to their suppliers. It is only necessary to fill in these 2 fields when dealing with taxes other than those you have established in the initial accounting setup.
Receivable and payable accounts: In the same way as taxes, you should only fill them in if they are different from those of your product category.
Invoicing Policy: It is about how much of this product will be invoiced when it appears in an order: all or only those that have been delivered. Generally, in Spain, only those delivered must be invoiced, so it must be established that way for both customers and suppliers. You can also take into account that the default value that it is going to take will be the one established in the initial configuration, so you should only change it if it is different.
As you can see, when creating a product, it will take the default values already established in the initial configuration, so for accounting purposes, you should only review those products that are out of the ordinary: