Besides the reports created specifically in each localization module, a few very useful generic and dynamic reports are available for all countries:

• Balance Sheet
• Profit and Loss
• Chart of Account
• Executive Summary
• General Ledger
• Aged Payable
• Aged Receivable
• Cash Flow Statement
• Tax Report

You can annotate every report to print them and report to your adviser. Export to xls to manage extra analysis. Drill down in the reports to see more details (payments, invoices, journal items, etc.).

You can also compare values with another period. A new more in depth criteria book of ra online associated with intriquing,notable and beneficial information. Choose how many periods you want to compare the chosen time period with. You can choose up to 12 periods back from the date of the report if you don’t want to use the default Previous 1 Period option.

Balance Sheet

The Balance Sheet shows a snapshot of the assets, liabilities and equity of your organisation as at a particular date.

Profit and Loss

The Profit and Loss report (or Income Statement) shows your organisation’s net income, by deducting expenses from revenue for the report period.

Chart of account

A listing of all your accounts grouped by class.

Executive Summary

The Executive Summary allows for a quick look at all the important figures you need to run your company.

In very basic terms, this is what each of the items in this section is reporting :

• Performance:
  • Gross profit margin:

The contribution each individual sale made by your business less any direct costs needed to make those sales (things like labour, materials, etc).

• • Net profit margin:

The contribution each individual sale made by your business less any direct costs needed to make those sales, as well as any fixed overheads your company has (things like rent, electricity, taxes you need to pay as a result of those sales).

• • Return on investment (p.a.):

The ratio of net profit made, to the amount of assets the company used to make those profits.

• Position:
  • Average debtor days:

The average number of days it takes your customers to pay you (fully), across all your customer invoices.

• • Average creditor days:

The average number of days it takes you to pay your suppliers (fully) across all your bills.

• • Short term cash forecast:

How much cash is expected in or out of your organisation in the next month i.e. balance of your Sales account for the month less the balance of your Purchases account for the month.

• • Current assets to liabilities:

Also referred to as current ratio, this is the ratio of current assets (assets that could be turned into cash within a year) to the current liabilities (liabilities which will be due in the next year). This is typically used as as a measure of a company’s ability to service its debt.

General Ledger

The General Ledger Report shows all transactions from all accounts for a chosen date range. The initial summary report shows the totals for each account and from there you can view a detailed transaction report or any exceptions. This report is useful for checking every transaction that occurred during a certain period of time.

Aged Payable

Run the Aged Payable Details report to display information on individual bills, credit notes and overpayments owed by you, and how long these have gone unpaid.

Aged Receivable

The Aged Receivables report shows the sales invoices that were awaiting payment during a selected month and several months prior.

Cash Flow Statement

The Cash Flow Statement shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.

Tax Report

This report allows you to see the net and tax amounts for all the taxes grouped by type (sale/purchase).

In KIU BMP, a payment can either be linked directly to an invoice or be a stand alone record for use on a later date:

• If a payment is linked to an invoice, it reduces the amount due of the invoice. You can have multiple payments linked to the same invoice.
• If a payment is not linked to an invoice, the customer has an outstanding credit with your company, or your company as an outstanding balance with a vendor. You can use this outstanding credit/debit to pay future invoices or bills.

Paying an invoice

If you register a payment on a customer invoice or a vendor bill, the payment is automatically reconciled with the invoice reducing the amount due.

The green icon near the payment line will display more information about the payment. From there you can choose to open the journal entry or reconcile the payment.

 Note

If you unreconcile a payment, it is still registered in your books but not linked to the specific invoice any longer. If you unreconcile a payment in a different currency, KIU BMP will create a journal entry to reverse the Currency Exchange Loss/Gain posted at the time of reconciliation.

Payments not tied to an invoice

Registering a payment

In the Accounting application, you can create a new payment from the Sales menu (register a customer payment) or the Purchases menu (pay a vendor). If you use these menus, the payment is not linked to an invoice, but can easily be reconciled on an invoice later on.

When registering a new payment, you must select a customer or vendor, the payment method, and the amount of the payment. The currency of the transaction is defined by the payment method. If the payment refers to a document (sale order, purchase order or invoice), set the reference of this document in the memo field.

Once confirmed, a journal entry will be posted reflecting the transaction just made in the accounting application.

Reconciling invoice payments

The easiest way of reconciling a payment with an invoice is to do so on the invoice directly.

When validating a new invoice, KIU BMP will warn you that an outstanding payment for this customer or vendor is available. In this case, you can reconcile this payment to the invoice near the totals at the bottom, under “Outstanding Payments”.

Reconciling all your outstanding payments and invoices

If you want to reconcile all outstanding payments and invoices at once (instead of doing so one by one), you can use the batch reconciliation feature within KIU BMP. Go to Accounting > Reconciliation.

The batch reconciliation feature is available from the dashboard on the Customer Invoices card and the Vendor Bills card for reconciling Accounts Receivable and Payable, respectively.

During the reconciliation, if the sum of the debits and credits do not match, it means there is still a remaining balance that either needs to be reconciled at a later date, or needs to be written off directly.

 

8.1. Overview

8.1.1. Introduction to KIU BMP Accounting

8.1.2. The Accounting behind Kiu BMP

 

8.2. Create vendor bill, customer invoice and register payment

8.2.1. From Customer Invoice to Payments Collection

8.2.2. From Vendor Bill to Payment

 

8.3. How journal entries on Kiu BMP were automatically generated ?

8.3.1 Check out the automatic entries

 

8.4. Create opening balance

 

8.5. Account Receivables

8.5.1. Overview of the invoicing process

8.5.2. Offer cash discounts

8.5.3. Set up cash rounding

8.5.4. How to setup and use payment terms

8.5.5. What are the different ways to record a payment?

 

8.6.Account Payables

8.6.1. How to manage vendor Bills?

8.6.2. When should I use supplier bills or purchase receipts?

 

8.7. Asset management

8.6.1. Classify Asset Types

8.6.2. Set up a Product as an Asset

8.6.3. Purchasing Asset process

8.6.4. Depreciate an Asset

8.6.5. Sell or Dispose an Asset

8.6.6. Asset Report

 

8.8. How to manage a financial budget?

 

8.9. Accounting reports

8.9.1. What are the main reports available?

8.9.2. How to do a year end in Kiu BMP? (close a fiscal year)

 

Before going ahead with closing a fiscal year, there are a few steps one should typically take to ensure that your accounting is correct, up to date, and accurate:

• Make sure you have fully reconciled your bank account(s) up to year end and confirm that your ending book balances agree with your bank statement balances.
• Verify that all customer invoices have been entered and approved.
• Confirm that you have entered and agreed all vendor bills.
• Validate all expenses, ensuring their accuracy.
• Corroborate that all received payments have been entered and recorded accurately.

Year-end checklist

• Run a Tax report, and verify that your tax information is correct.
• Reconcile all accounts on your Balance Sheet:
  • Agree your bank balances in Odoo against your actual bank balances on your statements. Utilize the Bank Reconciliation report to assist with this.
  • Reconcile all transactions in your cash and bank accounts by running your Aged Receivables and Aged Payables reports.
  • Audit your accounts, being sure to fully understand the transactions affecting them and the nature of the transactions, making sure to include loans and fixed assets.
• Run the optional Payments Matching feature, under the More dropdown on the dashboard, validating any open Vendor Bills and Customer Invoices with their payments. This step is optional, however it may assist the year-end process if all outstanding payments and invoices are reconciled, and could lead finding errors or mistakes in the system.
• Your accountant/bookkeeper will likely verify your balance sheet items and book entries for:
  • Year-end manual adjustments, using the Adviser Journal Entries menu (For example, the Current Year Earnings and Retained Earnings reports).
  • Work in Progress.
  • Depreciation Journal Entries.
  • Loans.
  • Tax adjustments.

If your accountant/bookkeeper is going through end of the year auditing, they may want to have paper copies of all balance sheet items (such as loans, bank accounts, prepayments, sales tax statements, etc…) to agree these against your Odoo balances.

During this process, it is good practice to set the Lock date for Non-Advisers to the last day of the preceding financial year, which is set under the accounting configuration. This way, the accountant can be confident that nobody is changing the previous year transactions while auditing the books.

Closing the fiscal year

In Odoo there is no need to do a specific year end closing entry in order to close out income statement accounts. The reports are created in real-time, meaning that the Income statement corresponds directly with the year-end date you specify in Odoo. Therefore, any time you generate the Income Statement, the beginning date will correspond with the beginning of the Fiscal Year and the account balances will all be 0.

Once the accountant/bookkeeper has created the journal entry to allocate the Current Year Earnings, you should set the Lock Date to the last day of the fiscal year. Making sure that before doing so, you confirm whether or not the current year earnings in the Balance Sheet is correctly reporting a 0 balance.

 

Payment terms define the conditions to pay an invoice. They apply on both customer invoices and supplier bills.

Example, for a specific invoice:

• Pay 50% within 10 days

• Pay the remaining balance within 30 days

 Note

Payment terms are different from invoicing in several areas. If, for a specific order, you invoice the customer in two parts, that’s not a payment term but invoice conditions.

Configuration

Configure your usual payment terms from the Configuration menu of the Account application. The description of the payment term is the one that appear on the invoice or the sale order.

A payment term may have one line (ex: 21 days) or several lines (10% within 3 days and the balance within 21 days). If you create a payment term with several lines, be sure the latest one is the balance. (avoid doing 50% in 10 days and 50% in 21 days because, with the rounding, it may not do exactly 100%)

Using Payment Terms

Payment terms for customers

Payment terms can be set on:

• a customer: to apply this payment term automatically on new sale orders or invoices for this customer. Set payment terms on customers if you grant this payment term for all future orders of this customer.

• a quotation: to apply this payment term on all invoices created from this quotation or sale order, but not on other quotations

• an invoice: to apply the payment term on this invoice only

If an invoice has a payment term, the journal entry related to the invoice is different. Without payment term or tax, an invoice of $100 will produce this journal entry:

Account	Due date	Debit	Credit
Account Receivable		100
Income			100

If you do an invoice the 1st of January with a payment term of 10% within 3 days and the balance within 30 days, you get the following journal entry:

Account	Due date	Debit	Credit
Account Receivable	Jan 03	10
Account Receivable	Jan 30	90
Income			100

In the customer statement, you will see two lines with different due dates.

Payment terms for vendor bills

The easiest way to manage payment terms for vendor bills is to record a due date on the bill. You don’t need to assign a payment term, just the due date is enough.

But if you need to manage vendor terms with several installments, you can still use payment terms, exactly like in customer invoices. If you set a payment term on the vendor bill, you don’t need to set a due date. The exact due date for all installments will be automatically created.

In some currencies, the smallest coins do not exist. For example, in Switzerland, there is no coin for 0.01 CHF. For this reason, if invoices are paid in cash, you have to round their total amount to the smallest coin that exist in the currency. For the CHF, the smallest coin is 0.05 CHF.

There are two strategies for the rounding:

1. Add a line on the invoice for the rounding
2. Add the rounding in the tax amount

Both strategies are applicable in Odoo.

Configuration

First, you have to activate the feature. For this, go in Accounting ‣ Configuration ‣ Settings and activate the Cash Rounding.

There is a new menu to manage cash rounding in Accounting ‣ Configuration ‣ Management ‣ Cash rounding.

Now, you can create cash rounding. You can choose between two rounding strategies:

1. Add a rounding line: if a rounding is necessary, Odoo will add a line on your customer invoice to take this rounding into account. You also have to define the account in which the rounding will go.
2. Modify tax amount: Odoo will add the rounding to the amount of the highest tax.

Apply rounding

Once your rounding are created, you can apply them on customer invoices. On the customer invoices, there is a new field called Cash Rounding Method where you can simply choose one of the rounding methods created previously. If needed, a rounding will be applied to the invoice.

 

Cash discounts are incentives you can offer to customers to motivate them to pay within a specific time frame. There book of ra online you’re able to study more about ones interest. For instance, you offer a 2% discount if the customer pays you within the first 5 days of the invoice, when it is due in 30 days. This approach can greatly improve your average collection period.

Set up a cash discount

To set up a cash discount, go to Accounting ‣ Configuration ‣ Management ‣ Payment Terms and click on Create. Add a Percent type of term with a corresponding value (e.g. 98% of the total price for a 2% discount) and the number of days during which the offer is valid. You can also change the default balance term if needed.

Start offering the cash discount

Now, you can create a customer invoice and select the cash discount payment term you added. Once the invoice is validated, KIU BMP will automatically split the account receivables part of the journal entry into two installments having different due dates. Since the discounted price is already calculated, your payment controls will be simplified.

Grant the cash discount

The customer fulfilled the payment terms and therefore benefits from the cash discount. When you process the bank statement, match the payment with the related journal entry. Then, select the remaining cash discount and click on Create Write-off to reconcile it.

 Tip

You can also create a dedicated reconciliation model to make the process easier. In this case, you should add a tax to the model based on the taxes applied to your invoices. This means that if you handle multiple tax rates, you need to create several reconciliation models. Note that depending on your localisation, you might already have a Cash Discount model available by default.

Register the full payment

In this case, the customer has not fulfilled the payment term and cannot benefit from the cash discount. When you process the bank statement, match the payment with the two related journal entries.

 

Depending on your business and the application you use, there are different ways to automate the customer invoice creation in KIU BMP. Usually, draft invoices are created by the system (with information coming from other documents like sales order or contracts) and accountant just have to validate draft invoices and send the invoices in batch (by regular mail or email).

Depending on your business, you may opt for one of the following way to create draft invoices:

Sales

Sales Order ‣ Invoice

In most companies, salespeople create quotations that become sales order once they are validated. Then, draft invoices are created based on the sales order. You have different options like:

• Invoice manually: use a button on the sale order to trigger the draft invoice
• Invoice before delivery: invoice the full order before triggering the delivery order
• Invoice based on delivery order: see next section

Invoice before delivery is usually used by the eCommerce application when the customer pays at the order and we deliver afterwards. (pre-paid)

For most other use cases, it’s recommended to invoice manually. It allows the salesperson to trigger the invoice on demand with options: invoice the whole order, invoice a percentage (advance), invoice some lines, invoice a fixed advance.

This process is good for both services and physical products.

Sales Order ‣ Delivery Order ‣ Invoice

Retailers and eCommerce usually invoice based on delivery orders, instead of sales order. This approach is suitable for businesses where the quantities you deliver may differs from the ordered quantities: foods (invoice based on actual Kg).

This way, if you deliver a partial order, you only invoice for what you really delivered. If you do back orders (deliver partially and the rest later), the customer will receive two invoices, one for each delivery order.

eCommerce Order ‣ Invoice

An eCommerce order will also trigger the creation of the order when it is fully paid. If you allow paying orders by check or wire transfer, KIU BMP only creates an order and the invoice will be triggered once the payment is received.

Contracts

Regular Contracts ‣ Invoices

If you use contracts, you can trigger invoice based on time and material spent, expenses or fixed lines of services/products. Every month, the salesperson will trigger invoice based on activities on the contract.

Activities can be:

• fixed products/services, coming from a sale order linked to this contract
• materials purchased (that you will re-invoiced)
• time and material based on timesheets or purchases (subcontracting)
• expenses like travel and accommodation that you re-invoice to the customer

You can invoice at the end of the contract or trigger intermediate invoices. This approach is used by services companies that invoice mostly based on time and material. For services companies that invoice on fix price, they use a regular sales order.

Recurring Contracts ‣ Invoices

For subscriptions, an invoice is triggered periodically, automatically. The frequency of the invoicing and the services/products invoiced are defined on the contract.

Others

Creating an invoice manually

Users can also create invoices manually without using contracts or a sales order. It’s a recommended approach if you do not need to manage the sales process (quotations), or the delivery of the products or services.

Even if you generate the invoice from a sales order, you may need to create invoices manually in exceptional use cases:

• if you need to create a refund
• If you need to give a discount
• if you need to change an invoice created from a sales order
• if you need to invoice something not related to your core business

 

From Vendor Bill to Payment

Once vendor bills are registered in KIU BMP, you can easily pay vendors for the correct amount and at the right time (not too late, not too early; depending on your vendor policy). KIU BMP also offers reports to track your aged payable balances.

If you want to control vendor bills received from your vendors, you can use the KIU BMP Purchase application that allows you to control and pre-complete them automatically based on past purchase orders.

From Vendor Bill to Payment

Record a new vendor bill

When a vendor bill is received, you can record it from Purchases ‣ Vendor Bills in the Accounting application. Some more in depth criteria book of ra online from intriquing,notable and useful information. As a shortcut, you can also use the New Bill feature on the accounting dashboard.

To register a new vendor bill, start by selecting a vendor and inputting their invoice as the Vendor Reference, then add and confirm the product lines, making sure to have the right product quantities, taxes and prices.

Save the invoice to update the pre tax and tax amounts at the bottom of the screen. You will most likely need to configure the prices of your products without taxes as KIU BMP will compute the tax for you.

Validate The Vendor Bill

Once the vendor bill is validated, a journal entry will be generated based on the configuration on the invoice. This journal entry may differ depending on the the accounting package you choose to use.

For most European countries, the journal entry will use the following accounts:

• Accounts Payable: defined on the vendor form
• Taxes: defined on the products and per line
• Expenses: defined on the line item product used

For Anglo-Saxon (US) accounting, the journal entry will use the following accounts:

• Accounts Payable: defined on the vendor form
• Taxes: defined on the products and per line
• Goods Received: defined on the product form

You can check your Profit & Loss or the Balance Sheet reports after having validated a couple of vendor bills to see the impact on your general ledger.

Pay a bill

To create a payment for an open vendor bill directly, you can click on Register a Payment at the top of the form.

From there, you select the payment method (i.e. Checking account, credit card, check, etc…) and the amount you wish to pay. By default, KIU BMP will propose the entire remaining balance on the bill for payment. In the memo field, we recommend you set the vendor invoice number as a reference (KIU BMP will auto fill this field from the from the vendor bill if set it correctly).

 Note

You can also register a payment to a vendor directly without applying it to a vendor bill. To do that, Purchases ‣ Payments. Then, from the vendor bill you will be able to reconcile this payment with directly.

 

Reporting

Aged payable balance

In order to get a list of open vendor bills and their related due dates, you can use the Aged Payable report, under the reporting menu, (in Reporting ‣ Business Statement ‣ Aged payable) to get a visual of all of your outstanding bills.

From here, you can click directly on a vendors name to open up the details of all outstanding bills and the amounts due, or you can annotate any line for managements information. At any point in time while you’re looking through the report, you can print directly to Excel or PDF and get exactly what you see on the screen.

 

KIU BMP supports multiple invoicing and payment workflows, so you can choose and use the ones that match your business needs. Whether you want to accept a single payment for a single invoice, or process a payment spanning multiple invoices and taking discounts for early payments, you can do so efficiently and accurately.

From Draft Invoice to Profit and Loss

If we pick up at the end of a typical ‘order to cash’ scenario, after the goods have been shipped, you will: issue an invoice; receive payment; deposit that payment at the bank; make sure the Customer Invoice is closed; follow up if Customers are late; and finally present your Income on the Profit and Loss report and show the decrease in Assets on the Balance Sheet report.

Invoicing in most countries occurs when a contractual obligation is met. If you ship a box to a customer, you have met the terms of the contract and can bill them. If your supplier sends you a shipment, they have met the terms of that contract and can bill you. Therefore, the terms of the contract is fulfilled when the box moves to or from the truck. At this point, KIU BMP supports the creation of what is called a Draft Invoice by Warehouse staff.

Invoice creation

Draft invoices can be manually generated from other documents such as Sales Orders, Purchase Orders,etc. Although you can create a draft invoice directly if you would like.

An invoice must be provided to the customer with the necessary information in order for them to pay for the goods and services ordered and delivered. It must also include other information needed to pay the invoice in a timely and precise manner.

Draft invoices

The system generates invoice which are initially set to the Draft state. While these invoices

remain unvalidated, they have no accounting impact within the system. There is nothing to stop users from creating their own draft invoices.

Let’s create a customer invoice with following information:

• Customer: Azure Interior
• Product: iMac
• Quantity: 1
• Unit Price: 100

The document is composed of three parts:

• the top of the invoice, with customer information,
• the main body of the invoice, with detailed invoice lines,
• the bottom of the page, with detail about the taxes, and the totals.

Open or Pro-forma invoices

An invoice will usually include the quantity and the price of goods and/or services, the date, any parties involved, the unique invoice number, and any tax information.

“Validate” the invoice when you are ready to approve it. The invoice then moves from the Draft state to the Open state.

When you have validated an invoice, KIU BMP gives it a unique number from a defined, and modifiable, sequence.

Accounting entries corresponding to this invoice are automatically generated when you validate the invoice. You can see the details by clicking on the entry in the Journal Entry field in the “Other Info” tab.

Send the invoice to customer

After validating the customer invoice, you can directly send it to the customer via the ‘Send by email’ functionality.

Payment

In KIU BMP, an invoice is considered to be paid when the associated accounting entry has been reconciled with the payment entries. If there has not been a reconciliation, the invoice will remain in the Open state until you have entered the payment.

A typical journal entry generated from a payment will look like as follows:

Account	Partner	Due date	Debit	Credit
Bank	Azure Interior		115
Accounts Receivable	Azure Interior			115

Receive a partial payment through the bank statement

You can manually enter your bank statements in KIU BMP, or you can import them in from a csv file or from several other predefined formats according to your accounting localization.

Create a bank statement from the accounting dashboard with the related journal and enter an amount of $100 .

Reconcile

Now let’s reconcile!

You can now go through every transaction and reconcile them or you can mass reconcile with instructions at the bottom.

After reconciling the items in the sheet, the related invoice will now display “You have outstanding payments for this customer. You can reconcile them to pay this invoice. “

Apply the payment. Below, you can see that the payment has been added to the invoice.

 

Profit and loss

The Profit and Loss statement displays your revenue and expense details. Ultimately, this gives you a clear image of your Net Profit and Loss. It is sometimes referred to as the “Income Statement” or “Statement of Revenues and Expenses.”

Balance sheet

The balance sheet summarizes your company’s liabilities, assets and equity at a specific moment in time.

For example, if you manage your inventory using the perpetual accounting method, you should expect a decrease in account “Current Assets” once the material has been shipped to the customer.