Chart of accounts | Odoo Accounting

The chart of accounts is a comprehensive list of all accounts a business uses to organize its financial records. Accounting software, like Odoo, categorizes these accounts by type, which generally align with financial reports such as the balance sheet and profit and loss report.

Accounts are grouped based on the financial report they belong to. Balance sheet accounts include equity (shareholder accounts, retained earnings), assets (bank, cash, current, fixed assets), and liabilities (accounts payable, loans). Profit and loss accounts include income (revenue from sales, different channels, or product categories) and expense accounts (external purchases, inventory loss, internal expenses).

In Odoo, the chart of accounts is accessed via the accounting app under configuration. It can vary based on fiscal localization (e.g., Canada vs. Belgium). A database can have multiple charts of accounts with multi-company features, but only one per company. Each account needs a unique code, name, type, and reconciliation setting.

To create a new income account, such as for Canadian sales, it's best to duplicate an existing similar account. The video demonstrates duplicating a 'non-EU sales account' and customizing its name to 'non-EU sales Canada'. Odoo automatically ensures the account code remains unique. Additional options like fiscal category and account activity are available in the form view.

If no currency is specified, an account can be used with any currency. If an account is managed in a different currency than the company's main currency, Odoo stores the foreign amount and converts it for debit and credit purposes. The account description can be updated to provide clarity on its use to other users.

The video illustrates creating an invoice for a Canadian customer and selecting the newly created 'non-EU sales Canada' account. The description helps in identifying the correct account. For vendor bills, expense and fixed asset accounts are proposed first. The chart of accounts is fundamental for accurate accounting.