Journal Entries

Basic Terms

Key points

• • Each transaction must have at least 2 entry lines

• • Total Debit must equal total Credit

• • Each line records to one account

• • Assets increase: Debit, decrease: Credit

• • Liabilities increase: Credit, decrease: Debit

• • Equity increase: Credit, decrease: Debit

• • Revenue: Credit, Expenses: Debit

Journal Types

Steps

• 1. Click "New" to create new entry

• 2. Select journal: Usually "Miscellaneous"

• 3. Enter posting date (Date)

• 4. Enter reference number (Reference) if any

• 5. Add entry lines: Click "Add a line"

• 6. Line 1: Select account, enter Debit or Credit

• 7. Line 2: Select account, enter Credit or Debit

• 8. Ensure: Total Debit = Total Credit

• 9. Enter description (Label) for each line

• 10. Click "Save" to save in Draft status

• 11. Click "Post" to record

Entry Example

Key points

• • Posting customer invoice: Debit Receivable, Credit Revenue

• • Posting vendor bill: Debit Expense, Credit Payable

• • Recording payment: Debit/Credit Bank, Debit/Credit Receivable/Payable

• • Inventory out: Debit COGS, Credit Inventory

• • Inventory in: Debit Inventory, Credit Payable

• • Asset depreciation: Debit Depreciation, Credit Accumulated Depreciation

Steps

• 1. Go to Invoicing → Accounting → Journal Entries

• 2. Filter by: Journal, Date, Status

• 3. Open entry to view details

• 4. Check: Total Debit = Total Credit

• 5. View accounts and amounts for each line

• 6. Check partner if any

• 7. View related documents (Invoice, Payment)

Steps

• 1. Open entry to edit

• 2. If Posted: Click "Reset to Draft"

• 3. Edit information: account, amount, description

• 4. Ensure Debit/Credit balance

• 5. Click "Save"

• 6. Click "Post" again to record

Steps

• 1. Open entry to reverse

• 2. Click "Reverse Entry"

• 3. Select reversal date

• 4. Select method:

• 5. - Full Reversal: Reverse all

• 6. - Partial Reversal: Reverse part

• 7. Click "Create Reversal"

• 8. System creates new entry with reversed Debit/Credit

• 9. Post reversal entry

Main Account Groups

Steps

• 1. Go to Settings → Accounting → Chart of Accounts

• 2. Click "New"

• 3. Enter account code: e.g., "6211"

• 4. Enter name: e.g., "Utilities Expense"

• 5. Select type: Expenses

• 6. Select parent account if any

• 7. Configure: Allow Reconciliation (if needed)

• 8. Save account

Steps

• 1. Go to Settings → Accounting → Lock Dates

• 2. Set "Lock Date for Non-Advisers"

• 3. Example: 31/12/2023

• 4. Users cannot edit entries before this date

• 5. Only Advisors can edit

• 6. Use to protect closed period data

Key points

• • Accrued expense: Debit Expense, Credit Accrued Expense

• • Unearned revenue: Debit Unearned Revenue, Credit Revenue

• • Depreciation: Debit Depreciation, Credit Accumulated Depreciation

• • Allowance: Debit Bad Debt Expense, Credit Allowance for Doubtful Accounts

• • Expense allocation: Debit Expense, Credit Prepaid Expense

• • Exchange difference: Debit/Credit Exchange Gain/Loss

Steps

• 1. Close revenue: Debit Revenue, Credit Income Summary

• 2. Close expenses: Debit Income Summary, Credit Expenses

• 3. Determine profit/loss: Income Summary

• 4. Close profit/loss: Debit/Credit Income Summary, Credit/Debit Retained Earnings

• 5. Close temporary accounts

• 6. Open new period with opening balances

Steps

• 1. Go to Invoicing → Reports → General Ledger

• 2. Select account to view

• 3. Select report period

• 4. View: Opening balance, Debit/Credit movements, closing balance

• 5. Drill-down: Click line to view entry

• 6. Export to Excel for analysis

Key points

• • Go to Invoicing → Accounting → Journals

• • Select journal to view

• • View all entries in journal

• • Filter by date, status

• • Check accuracy

• • Print journal for archiving

Steps

• 1. Always ensure Debit/Credit balance before posting

• 2. Enter clear description for each entry line

• 3. Use Reference to link with source documents

• 4. Check accounts before posting

• 5. Use reverse entries instead of deleting posted entries

• 6. Lock books after closing accounting period

• 7. Backup data before large adjusting entries

Errors and Solutions

Steps

• 1. Prepare Excel file with columns: Date, Journal, Account, Debit, Credit, Label

• 2. Go to Invoicing → Accounting → Journal Entries

• 3. Click "Import"

• 4. Upload Excel file

• 5. Map columns with Odoo fields

• 6. Preview and check data

• 7. Click "Import" to create entries

• 8. Check and post each entry

Entry Permissions