The year-end closing process on Odoo
Year-end closing in Odoo is a simple, readable process: the ERP tracks your activity in real time and walks you through your closing operations step by step, in line with the logic of accounting principles. Here is the method our consultants apply at their clients.
The basics you need to know
- No entry is required to close the profit and loss account: the reports are calculated automatically.
- For balance sheet accounts, the opening balance is the sum of all transactions recorded in previous financial years, with no manual carry-forward.
- The profit and loss statement follows your reporting dates directly: its balance only covers the financial year's transactions and its opening balance is always zero.
The eight-step year-end closing checklist
- Match your bank balance against your book balance.
- Reconcile your accounts with your bank statements, document any outstanding items and adjust your reconciliation statement where needed.
- Make sure every customer and supplier invoice has been fully recorded.
- Check the matching and reconciliation of all supplier and customer payments.
- Validate the depreciation entries generated automatically.
- Reconcile TVA (VAT) using the one-click tax report, broken down by taxable revenue and deductions.
- Post your adjusting entries: invoices not yet received, prepaid expenses…
- Review your inventory and currency adjustment entries: stock entries can be automated, and the inventory valuation report lets you calculate any variance.
Lock the financial year to secure the closing
Once the account review work is complete, Odoo lets you block the posting of any new transaction on the period: simple protection against irreversible mistakes. Journal entries can be viewed and grouped in analysis tables, and reclassifications are made directly from the financial reports.
Carry-forward, automated
No more generating entries manually in carry-forward accounts: that logic is now obsolete. Odoo automates the allocation of profit — the after-tax result — to the carry-forward accounts configured beforehand. The allocation takes place when generating the trial balance, by specifying the start and end dates of the accounting period.
What about Moroccan compliance?
Our teams configure Odoo for the Moroccan context: chart of accounts, TVA and the statements expected by the authorities. It is one of the cornerstones of our Odoo ERP integration, complemented by our Odoo modules proven in the field since 2013, and by managed hosting with Karizma One.
Secure your next year-end closing
A functional consultant reviews your Odoo accounting configuration, your statements and your closing process, then proposes a concrete optimisation plan.
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