Every day, a firm will handle numerous transactions. Payment is made for the amount obtained from the client via the invoice. The business's accounting department might not, however, be able to enter all transaction information and amounts in the bank account at the time the transaction occurs. After each week, the account statements are typically reviewed and validated. Reconciliation is the process of comparing the information from the cash transaction and the bank account. This procedure makes it easier for the accounts wing to monitor any entry problems. Transparency in transactions is ensured by reconciliation. With this, you can guarantee correctness in transactions.
Special features in Odoo Accounting make reconciliation simple. Thus, the system initiates the reconciliation process automatically after the procedure is finished and any modifications are detected. To expedite the process, the Odoo 17 Accounting module supports the creation of reconciliation models. We will be able to connect client invoices and bank data with this accounting application.
When is an account reconciled? Once every bank account has been correctly formed and imported, we reconcile the accounts. You can make sure that all of your journal entries are correctly entered into the bank statement by using reconciliation. We implement a reconciliation process to expedite the completion of this task. We can develop and apply reconciliation models to expedite the task since we must deal with recurrent reconciliation procedures.
We can use Odoo 17 Accounting's Configuration menu to develop a reconciliation model. A reconciliation model is located here, under the Banks section.
Models of Reconciliation
A Reconciliation model that has already been constructed is available here. Let's open it and see what's inside.
The user can give the reconciliation model a name using Odoo. The kind of reconciliation model is something else we can make. We can construct three distinct kinds of reconciliation models with this form. They are
- Compare current bills and invoices.
- Create a write-off by hand when a button is clicked
Propose equivalent values. We developed a model with rules for matching invoices. The Auto-validate feature is an additional option. The reconciliation will be automated once this Auto Validation option is enabled. The conditions on the bank statement lines are what we currently have. In this case, we must choose the journal, the type of amount, the quantity, etc. The same options for amount matching and currency matching are also available.
Partner mapping is one more choice we have. We can limit this reconciliation model to only one partner among the partners. Partner restriction: This feature allows you to choose just specific partners, such as vendors or consultants. We can begin the reconciliation procedure after the reconciliation models have been configured to our satisfaction. To accomplish this, we must navigate to the Accounting menu and choose the Reconciliation option. You can locate this under Actions.
The list of accounts that need to be reconciled appears when we click on Reconciliation.
This place makes it simple to obtain the invoice and payment details. The button is also in our grasp. This button will assist us in finishing the job of reconciliation.
We will be able to reconcile the invoice or payment with the account thanks to this process. It will guarantee that the information provided in the bank statement matches that found in the journal, which includes the general ledger.
There are two ways that we can finish the reconciliation procedure.
To reconcile from the invoice, first, we have to create an invoice.
The invoice date, due date, and customer name can all be entered here. It might be written in the journal as well. Also, we need to complete the invoice lines with the necessary information. A product, product label, account, and analytical account must all be added in this instance. We can also include the product's price, quantity, unit of measurement, and tax information.
After an invoice is generated, it has to be verified. After that, we must REGISTER PAYMENT.
On registering payment, we get a new page, as in the page below.
The journal name can be entered. Choose a payment method and include others. Here, we can also include the payment date and amount. After that, make the payment, and we'll know the process is finished.
This is the page that appears when the payment is created. This invoice has a ribbon on it.
This is the page that appears when the payment is created. This invoice has a ribbon on it.
The amount owed and the payment date are listed on the invoice page.
Close to Paid We can locate an icon on the date. We can see that the invoice has been automatically reconciled with the aid of this icon.
We can now click the UNRECONCILE button to remove the reconciliation. Case of bank statement reconciliation. This is an additional approach to reconciliation. Since we've already talked about invoice reconciliation, a bank statement can also be used to verify reconciliation. We need to make a new bank statement to accomplish this. Bank statements can also be imported to do this.
To do this, navigate to the Accounting dashboard's bank feed area. You can view the statements awaiting reconciliation by clicking on the Bank Reconciliation.
Use the current statement or make a new one. All statements that are awaiting reconciliation are included here. We can verify such claims.
We can see that every transaction has been reconciled after we have validated.
After that, by clicking on this, we can see that all of the transactions have been reconciled.
By selecting GO TO BANK STATEMENTS, we can review the bank statement if we'd like. These are the ways that Odoo 17 Accounting uses for reconciliation. Through this procedure, we can ensure that our bank statements are transparent and free from statistical inconsistencies.