Odoo 15 Accounting Module Checks
Financial stability is seen as an organization's backbone. Practical accounting is essential when a company deals with sales or acquisitions. Customers can now make a variety of payments as a result. Customers have the option of paying the bill in cash or via bank transfer. Checks are more difficult to handle with than other kinds of payment. If the customer sends a check, it is only applied to our company's account on the check date. As a result, dealing with such inspections in accounting might be difficult.
The Odoo platform aids in the efficient management of these processes. When a customer writes a check to us for a future date, the check is known as a Post Dated check (PDC). The check can be cashed or deposited before the expiration date.
Let's have a look at how PDC can be managed with basic features in Odoo v15. We can create a new Journal for post-dated check transactions. To create a journal, go to the Configuration tab and select the Journal option.
By clicking the create button we can create new journals, as well as we can see the old journals that were created, in the journals dashboard.
Enter the journal's name, type, company, shortcode, and account details, among other things, to create a new journal. In this scenario, the journal was given the name check and the shortcode PDC. Sales, Purchase, Cash, Bank, and Miscellaneous journals are all available here.
Customer invoice journals, vendor bill journals, cash, bank for customer or vendor payment journals, and other operations journals are the four categories.
When a customer pays his bill with a check, this journal is used; thus, the type is set to bank.
On the incoming and outgoing tabs, we must provide the Payment Method and Outstanding Payment Accounts. Add 0001 PDC Receivable to the incoming payment tab and 0002 PDC Payable to the outgoing payment tab as Outstanding Payment Accounts.
Outstanding receipt accounts are temporarily used as accounts during processing. It helps us avoid having the receivable account directly involved in the bank reconciliation process.
This account will receive any incoming payment entries generated by invoices or cash. During the reconciliation process, transactions will be reconciled with entries on the outstanding receipt account rather than the receivable account. The journal is now produced after you save the page. A $5200 invoice was generated by a customer called Samuel.
The payment date was established five days after the invoice date. Enter the product, quantity, and price in the invoice line. After that, the invoice will be confirmed.
Let's have a look at the partner ledger transaction. From the reporting tab, choose Partner Ledger. We can see our customers' transactions there.
The initial balance is zero, then $5200 is debited, leaving the balance at $5200, implying that the user must pay $5200.
Consider the case when the customer paid with a check. Go to the customer page and then to payments to do so.
There, we can view all of the payments that have been made in various Statuses such as Draft, Posted, and Canceled. A new payment can be made by clicking the create button.
There, you can input information like the customer's name, payment amount, and check date, among other things.
Select a payment method, either transmit or receive. Change the journal to the 'check' setting that we previously set up.
The check date must be in the future because this is a post-dated check. The payment is now in draft mode; fill in the blanks, save, and confirm. The payment is subsequently transferred to the step indicated. Reconciled Entries is a smart tab that you should open.
The sum is deducted from the PDC Receivable Account and credited to the Receivable Account of the Debtors. If you go to the Report tab and look at the Aged Receivables Report, you'll notice an item for the invoice you just created. Because the bank account has yet to be established.
The check will be sent at a later date since the company accepts payment via check, which is not recognized by the bank. The funds have not yet been credited to the company's account. Re-examine the Partner ledger. Two entries have been added as a result of the payment.
When looking at the entries, one has a value of 5200, while the other has a value of -5200, suggesting a negative value. As a result, there is no net effect.
However, since zero, the amount has been credited in the transaction tab. It's because our consumer submitted us a post-dated check with monies that haven't been deposited to our account.
Let's create a bank statement for the transaction we just completed. To create a statement from the dashboard, select the Bank option. After that, make a fresh assertion.
Include the bank reference, journal date, and other pertinent information. To the transaction tab, add the payment information.
Date, Label, Partner, and Amount should all be entered on the transaction tab. The ending balance should then be updated using the determined Computed Balance. Then save your edits and publish the statement.
Then just match the payment to the bill. Press the Reconcile button to do so.
The payment and bank statement have been gathered, as can be seen. Then, from the drop-down menu, choose Validate.
Examine the Report on Aged Receivables again. For the customer, there are currently two entries. The cash have been credited to the company's bank account since then.
Examine the report on Overdue Accounts Receivables again. For the customer, there are presently two records. Since the monies were credited to the business's bank account.
Return to the invoice you originally made, which is now in the paid state.
When paying by check, the payment is completed after the check is received, but the funds are not transferred into our account. A ledger balance is displayed as a result. Payments are credited to the company account until the balance changes, which occurs only after the bank reconciliation has been completed.