1.3 Account Ledgers - Importance of Accounting

Account Ledgers

Account ledgers keep all the transaction records, including opening and closing balances in debit or credit. Transactions might be the result of routine company operations like invoicing customers, recording supplier invoices, any bank or cash transaction, stock valuations, salary expense, and more or they can be the result of correcting entries that need the usage of journal entries. Each of the transactions has a reference number that allows them to identify why that particular transaction was made.

Different account ledgers used in Odoo are as follows:

  1. Income account
  2. Expense account
  3. Stock input account
  4. Stock output account
  5. Stock valuation account
  6. Price difference account
  7. Account Receivable
  8. Account Payable
  9. Fixed Asset Account
  10. Depreciation Account
  11. Revenue Account
  12. Deferred revenue account
  13. Expense account
  14. Deferred Expense Account
  15. Suspense Account
  16. Outstanding Receipts Account
  17. Outstanding Payments Account
  18. Transfer Account

Journals

Odoo provides five types of journals to record the same kind of transaction under a single journal. The types of the journal include Sales, Purchase, Bank, Cash, and Miscellaneous.

Sales journals record all the sales-related transactions. One or more sales journals can be configured based on requirements. The sales from wholesale and retail can be separately recorded if separate sales journals are used. Purchase journals record all purchase-related transactions. As mentioned, separate purchase journals also can be used.

The Bank Journal records all the bank transactions, and the cash journal records all the cash transactions. Miscellaneous journals are used to record transactions other than the four journals mentioned. It includes inventory valuation, exchange difference, inventory adjustments, opening balance and many more. For all above-mentioned types you can set the sequence number, which will be very helpful at the time of scrutinizing.

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