The accounting closing in Odoo is a simple process. The objective of Odoo is to allow you to follow your activity closely and in real-time and to make your closing operations as straightforward as possible while respecting the logic of accounting principles.
In Odoo, you don’t need to make a transaction to close the income statement. The reports are calculated automatically.
For the balance sheet accounts, the initial balance corresponds to the sum of all transactions recorded in previous years since there is no carry forward (Closing balance sheet before distribution).
The income statement corresponds directly to the dates of your report.
The balance of the account (the balance sheet) only includes the transactions that took place during the year. The initial balance is always zero.
Year-end accounting in Odoo
Reconcile your bank balance with your accounting balance.
Your bank balance is to be reconciled with your bank statement, justify the suspense items and modify your bank reconciliation statement if necessary.
Ensure the correct posting of the completeness of customer and supplier invoices.
Verify the lettering and reconciliation of all supplier payments and customer payments.
Ensure the correct accounting entry of depreciation entries that have been entered automatically.
When scaling the VAT, you can consult the tax report generated in one click. (Breakdown of the VAT based on the taxable turnover and the deductions)
At closing time, we offer you a feature that will prevent you from making irreversible errors and blocking the entry of any new transaction.
*You will be able to lock the fiscal year after the end of your audit work.
Speaking of auditing work, Odoo allows you to view and group accounting entries in the form of analysis tables and to make your reclassifications directly from the financial reports.
Regarding retained earnings, Odoo follows a new logic that is even simpler than generating entries in the owned earnings accounts, which are becoming obsolete.
Today, Odoo automates the profit allocation (result after tax) in the carry-forward accounts (set up in advance).
*The allocation of the result is done when editing the trial balance by specifying the start and end date of the accounting period.