Cutoff Journal
You can define the Cutoff date as the break-off of the deadline of any bill, invoice, or agreement that delineates when there are more business transactions to be registered in the following reporting period. Sometimes, the invoices and payments which are not approved or fully matched cannot be recorded in the accounts added in Odoo 17. In such cases, the company must ensure whether the liability or expense has been incurred at the end of every accounting period.
Let’s check the Cut-Off feature available in Odoo 17 through an example. Imagine, a customer made a payment of 75% of the amount mentioned in the invoice. You can make corresponding changes in the journal entries using the Cut-Off option available in the bill as shown below.
As previously noted, the consumer only made up 75% of the whole payment. The remaining sum will be noted in the loss account of the business. The Cut-Off button can be used to mark this in the loss account.
Here, a pop-up window allowing you to edit the diary entry will appear. The remaining 25% might be mentioned in the Adjusting Amount column. At the conclusion of the accounting period, these kinds of adjustment entries must be made in your company's financial statements to reflect the liabilities and expenses. To make adjustment entries, we utilize the Cut-Off function. Once the Adjustment Amount, Accrued Account, and Journal have been mentioned, you can select the button to Create Journal Entries.
The screenshot above displays the created entries.