The Odoo business management software has established itself as one of the most widely used open-source ERP solutions in the world, especially among SMEs and freelancers looking to integrate sales, inventory, projects, and accounting. One of its most powerful —and at the same time most complex— features is the accounting module. In this article, we provide a step-by-step guide to help users correctly set up this module and start managing their finances efficiently.
Activate the accounting module
The first step is to access the Odoo administration panel and install the Accounting module (also known as "Accounting" or "Invoicing," depending on the version). This installation can be done from the Applications menu. Once activated, a new section will appear on the dashboard with all the available accounting functionalities.
Configure company information
Before issuing invoices or recording transactions, it is essential to correctly configure the company's data. This includes:
Tax name, CIF/NIF, Address, Bank information, Corporate logo....
This data is defined from the Settings module → Company Information and is used in all invoices and reports generated.
Define the chart of accounts
Odoo allows you to select a standard chart of accounts based on the country. For companies in Spain, it is recommended to install the Spanish chart of accounts (PGCE) which includes all accounts according to the General Accounting Plan. This option can be found in the configuration menu of the Accounting module → Settings → Chart of accounts for import. Or Accounting → Settings → Settings: Tax localization.
Once loaded, it is possible to customize it, add sub-accounts, or remove those that will not be used.
Set taxes and VAT rates
Another key step is the configuration of taxes, by assigning the specific tax localization. In Spain, this includes the general VAT (21%), reduced (10%), and super-reduced (4%). Odoo already offers these predefined values if the national chart of accounts has been loaded, but it is advisable to review and adjust them if the company applies special regimes.
Additionally, specific VAT rates can be assigned to products and services, which automates the generation of taxes on invoices.
Configure journals and payment methods
Accounting journals are records that group transactions of the same type, such as sales, purchases, or bank movements. From the configuration section of the module, it is possible to edit existing journals or create new ones with customized parameters: name, code, associated accounts, etc.
Similarly, payment methods (transfer, cash, card, etc.) must be defined to facilitate bank reconciliation and the management of collections/payments.
It is important to always have a "miscellaneous" type journal created for the correct creation of accounting entries.
Create products and services with accounting implications
Each product or service that is sold or purchased must have specific accounting accounts assigned, both for income and expenses. This configuration is done from the Inventory or Invoicing module, in the details of each product.
Correctly assigning accounting accounts prevents errors in entries and ensures accurate reports.
Issuing invoices and recording transactions
Once the basic configuration is complete, customer invoices can be issued and supplier invoices can be recorded.
Odoo automatically generates the corresponding accounting entries and allows for complete tracking of the status of each invoice (draft, validated, paid, overdue...).
Bank reconciliation and statements
A key functionality is bank reconciliation. Odoo allows importing bank statements in different formats or activating bank synchronization, whose main function focuses on connecting Odoo with the bank and automatically loading transactions every 12 hours.
Once imported, the system suggests automatically matching bank transactions with recorded invoices or payments.
This process allows for keeping the accounting updated without the need to manually enter data.
Reports and fiscal closing
Finally, the Odoo accounting module offers a wide range of reports: general ledger, balance sheet, profit and loss, VAT journal, and more. These reports are essential for fiscal closing and tax filing.
Odoo also allows locking periods to prevent modifications once the fiscal year is completed.