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, project, and accounting management into a single system. One of its most powerful—and also most complex—features is the accounting module. In this article, we offer a step-by-step guide to help users correctly configure this module and begin 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 features.
Configure company information
Before issuing invoices or recording transactions, it is essential to correctly configure the company's data. This includes:
Company name, tax ID/VAT number, address, bank details, corporate logo.... This data is defined from the Settings → Company Information module and is used in all invoices and reports generated.
Define the accounting plan
Odoo allows you to select a standard chart of accounts based on your 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 Accounting module's settings menu → Configuration → Chart of Accounts for Import. Alternatively, you can go to Accounting → Configuration → Settings: Tax Location.
Once loaded, it is possible to customize it, add sub-accounts or remove those that will not be used.
Establish taxes and VAT rates
Another key step is configuring taxes by assigning your tax location. In Spain, this includes the standard VAT rate (21%), the reduced rate (10%), and the super-reduced rate (4%). Odoo already offers these predefined values if the national chart of accounts has been loaded, but it's advisable to review and adjust them if your company applies special tax regimes.
In addition, 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 transactions. From the module's settings section, you can edit existing journals or create new ones with custom parameters: name, code, associated accounts, etc.
Similarly, payment methods (transfer, cash, card, etc.) should be defined to facilitate bank reconciliation and the management of collections/payments.
It is important to always have a "miscellaneous" journal created for the correct creation of accounting entries.
Create products and services with accounting implications
Each product or service sold or purchased must have specific accounting accounts assigned to it, for both income and expenses. This configuration is done from the Inventory or Billing module, on each product's record.
Correctly assigning accounting accounts prevents errors in journal entries and ensures accurate reports.
Issue invoices and record transactions
Once the basic setup is complete, you can issue customer invoices and register supplier invoices.
Odoo automatically generates the corresponding accounting entries and allows you to fully track the status of each invoice (draft, validated, paid, overdue...).
Bank reconciliation and statements
A key feature is bank reconciliation. Odoo allows you to import bank statements in various formats or activate bank synchronization, whose main function is to connect Odoo with the bank and automatically upload transactions every 12 hours.
Once imported, the system proposes to automatically match bank transactions with recorded invoices or payments.
This process allows you to keep the accounting up to date without having to enter the data manually.
Reports and fiscal closing
Finally, Odoo's accounting module offers a wide range of reports: general ledger, balance sheet, profit and loss statement, VAT journal, and more. These reports are essential for year-end closing and tax filing.
Odoo also allows you to lock accounting periods to prevent modifications once the fiscal year has ended.