Account Groups are formed by grouping together related ledger accounts. The hierarchy of ledger accounts is supposed to be demonstrated by these account groups. The generation of relevant reports will greatly benefit from this structure of ledger accounts. Regular, Payable, Receivable, and Liquidity account groups are the most frequently utilized account types in Odoo17. These defined groupings are used to describe each of these account ledgers.
| SI.NO | Account Name | Nature | Group Under | Affect in Reports |
| 1 | Receivable | Asset | Receivable | Balance Sheet |
| 2 | Bank and Cash | Asset | Receivable | Liquidity |
| 3 | Current Assets | Asset | Receivable | Liquidity |
| 4 | Non-Current Assets | Receivable | Regular | Balance Sheet |
| 5 | Prepayments | Receivable | Regular | Balance Sheet |
| 6 | Fixed Assets | Receivable | Regular | Balance Sheet |
| 7 | Payable | Liability | Payable | Balance Sheet |
| 8 | Credit Card | Liability | Payable | Balance Sheet |
| 9 | Current Liabilities | Liability | Regular | Balance Sheet |
| 10 | Non-Current liabilities | Liability | Regular | Balance Sheet |
| 11 | Income | Income | Regular | Profit & Loss |
| 12 | Other Income | Income | Regular | Profit & Loss |
| 13 | Expenses | Expenses | Regular | Profit & Loss |
| 14 | Depreciation | Expenses | Regular | Profit & Loss |
| 15 | Cost of Revenue | Expenses | Regular | Profit & Loss |
| 16 | Depreciation | Expenses | Regular | Profit & Loss |
| 17 | Equity | Equity | Regular | Balance Sheet |
| 18 | Current Year Earnings | Equity | Regular | Balance Sheet |
Let's examine each of them independently.
1. Account Receivable ( Debtors )
The sum of money necessary for paying for goods or services that have been received but have not yet been paid by the customer is known as an Account Receivable. The debtors are another name for the Account Receivable. These accounts are particularly practical for keeping track of all customer receivables. The receivables will fall under the Assets when we take their nature into account. When taking into account a sale, the receivable accounts are debited based on the increasing amount of receivables.
2. Bank and Cash
Every organization's bank and cash account will fall under the Bank and Cash type because it is an Asset by definition. As an illustration, let's say a company decides to make a cash payment rather than a credit purchase and takes into account the amount that is taken out of the bank account. Due to the asset's decrease, the bank account will be credited.
3. Current Assets
Cash and other assets that are planned to be converted to cash within a year are considered Current Assets. So, registering short-term assets will be facilitated by using this account type. This category can include assets like inventory, short-term investments, prepaid expenses, etc. This category includes the bank deposits, loans, and advances provided to the employees.
General accounts include Stock Valuation Accounts, Stock Input and Output Accounts, Deferred Expense Accounts, and numerous others. Because they are assets by nature, Odoo's "Current Assets" ledgers and entries of this sort have an impact on the balance sheet.
4. Non-Current Assets
Non-current assets are regarded as assets that the company purchases or invests in. That investment's quantity does not, however, reverse within an accounting year. As a result, this investment type will produce returns for a considerable amount of time and cannot simply be converted into cash. The following are some examples of this kind of asset: properties, automobiles, insurance, etc. It is impossible to determine the total value within the accounting year. The balance sheet includes a list of each one of them.
5. Prepayments
Prepaid expenses serve as an example of prepayments. Although the goods and services in this instance have already been paid for, they have not yet been received or used. As an illustration, Odoo saw prepaid or deferred expenses as belonging to this category.
For instance, suppose there was insurance with a $30,000 annual payment. The company won't be able to include the entire expense in the current-year profit and loss report. The sum must be spread out over a full year by the organization. As a result, $2500 will be used each month, and the expense will be recorded. The payment will be of the type "Asset," and the asset value will drop annually. Therefore, as the expense steadily reduces, the payment account will be credited and the expense account debited.
6. Fixed Assets
The Fixed Assets account type is highly convenient for recording all fixed asset transactions, including those involving equipment, vehicles, real estate, buildings, furniture, and many more. All the goods that the firm or business intends to use for a long time can be included. Additionally, fixed assets fall under the Assets category. As a result, when we make a purchase, the fixed asset will grow, the fixed asset account will be debited, and the fixed assets will be recorded on the balance sheet.
7. Payables
Creditors is another name for the Payables account category. It is the total amount owed by an organization to anyone or any individual. The payables accounts are appropriate for keeping track of all amounts owed to vendors or suppliers. The payable account is additionally credited as the category of responsibility on a vendor bill.
8. Credit Cards
Another category of account is the credit card, and this account's characteristic is liability. The balance sheet includes information about the credit card. In the case of credit cards, the amount of money spent using the card for any purpose, such as making a purchase or paying for other expenses, will result in certain debts, which we need to repay within a certain amount of time, usually less than or close to two months.
9. Current Liabilities
Short-term liabilities are Current Liabilities, those that must be paid off within a year. The Current Liability Account Type can be listed under the following headings. Among them are overdrafts at the bank, quick loans, taxes and duties, salaries that must be paid, payroll taxes, accruing costs, income taxes, and many other things.
10. Non-current liabilities
Non-current liabilities, also known as long-period debts or financial commitments, are long-term obligations that are shown on the balance sheet and are due in a year or more. Non-current liabilities include things like pension benefit obligations, long-term loans, deferred tax liabilities, and long-term leasing obligations.
11. Income & Other Income
When a company wants to show its income or revenue, the Income & Other Income account type is quite helpful. The nature of the account is income, which will be included in the profit and loss reports. The company's primary source of income is from the sale of its goods and services. And any other income is not considered to be a direct source of revenue. Interest payments, rent payments, and other sources of revenue are a few examples.
12. Expenses
The account types known as expense accounts are used to keep track of every aspect of how much an organization spends on regular expenses over the course of a certain accounting period. This form of expense account comprises delivery costs, income tax costs, costs associated with the creation of goods and services, salary costs, advertising costs, maintenance costs, marketing costs, rent costs, etc. Since expenses are the nature of the Expense accounts type, they will be included in the income statement/profit and loss report.
13. Depreciation
The amount that an organization's assets are depreciated for a particular period is generally referred to as the Depreciation account type. This account type is typically used to track the depreciation of fixed assets. There will occasionally be some depreciation in the case of fixed assets, and each period will undoubtedly see a decline in their value. Depreciation of this kind will, therefore, be linear or regressive. At the time an asset is created, it will also have a book value and a salvage value. The initial cost is represented by the book value. Salvage value is the amount that an organization will receive when selling a fixed asset after all depreciation has been accounted for. Furthermore, based on the depreciation method used, the expense will be spread out over a specific time period as opposed to being added all at once to the current year. The expense account is credited, while the depreciation accounts debit.
14. Cost Of Revenue
The direct costs associated with the company's goods and services are closely correlated with the cost of revenue. This means that it represents the full cost of producing and providing a good or service to customers. It is more comfortable to depict the direct cost linked with the goods and services since it is immediately related to the income statement. It comprises the price of producing the goods and shipping it to the buyers. Cost of revenue is an expense by definition, and as such, this account type will have an effect on gross profit.
15. Equity
The equity account type can be thought of as the financial representation of a company's intellectual property. It displays the sum of money that the employers contributed to beginning operations. Equity can result from a business receiving payments from its owners or from the residual income it generates. In other words, equity is the amount of assets remaining after all liabilities have been paid in full and are recorded on the balance sheet. This account type includes common stock, contributed surplus, treasury stock, common and preference stocks, other sizable earnings, etc. Equity will fall under the category of Asset type when we think about its nature. The equity will be equal to the amount of money invested. Therefore, any investment will result in an increase in equity. The extra equity will then be credited to the capital account.
16. Current year earnings
The equity-based account type known as "Current Year Yearning" is used to reflect the net profit and loss for the current fiscal year on the balance sheet. The earnings for the current year will also be impacted by sales or any other transaction that has an impact on the income and expense account. The balance sheet will also include a mention of this.