[ADVANCED FEATURES] Multi company setup
Summary
TLDRThis video tutorial explains how to optimize a multi-company setup using Odoo. It explores how to manage inter-company transactions, reinvoice expenses, and create financial reports excluding inter-company entries. Key features like synchronization of invoices, journal groups, and analytic tags are discussed to streamline operations between subsidiaries. The presenter also demonstrates how to handle tax reports for multiple companies, emphasizing best practices for maintaining separate charts of accounts across different countries to avoid financial reporting issues. The video concludes with recommendations for managing unique accounting setups efficiently.
Takeaways
- 📊 Multi-company environments in Odoo can be optimized for efficient inter-company workflows.
- 🤝 FP Cars Group needs to manage inter-company transactions due to shared expenses and revenue, such as Belgium’s investment in a communication system.
- 🔄 Odoo’s inter-company transactions feature allows synchronization of purchases, sales orders, invoices, and vendor bills between companies.
- 💡 Journal groups can be used to exclude inter-company transactions from financial reports, providing a clear picture without these entries.
- 📑 Analytic tags can help identify and manage amounts that need to be reinvoiced between subsidiaries, allowing for partial or full cost allocation.
- 🧾 Synchronizing transactions, such as invoices and bills, ensures that both sides (e.g., Belgium and UK) automatically update with corresponding entries.
- 📈 Journal groups provide an effective way to create financial reports that exclude inter-company transactions for more accurate group reporting.
- 💼 Monthly reinvoicing can be managed using analytic tags and accounts, allowing easy tracking of amounts to be billed between companies.
- 🔧 Companies can export accounting data from Odoo to third-party software for consolidated group reporting, but a direct integration is not always recommended.
- 🌍 Odoo supports joint tax reporting for multiple companies in the same country by adding a system parameter, but this doesn't apply to cross-country setups.
Q & A
What is the primary use case discussed in the video?
-The primary use case is managing inter-company workflows within FPIncars Group, where subsidiaries periodically reinvoice each other for shared expenses and revenues, such as communication system costs paid by FP Cars Belgium but used by other subsidiaries.
How does the intercompany transactions feature in Odoo help manage inter-company transactions?
-The intercompany transactions feature in Odoo synchronizes purchases, sale orders, invoices, and vendor bills between subsidiaries. For example, when one company creates a vendor bill, the corresponding customer invoice is automatically generated in the other company, reducing communication gaps.
Why is it important to create separate journals for inter-company transactions?
-Creating separate journals for inter-company transactions helps in financial reporting by allowing companies to exclude inter-company entries from their reports, such as profit and loss statements and balance sheets. This ensures that financial reports reflect business activity without skewing results due to inter-company accounting.
What role do analytic tags play in managing inter-company transactions?
-Analytic tags help track amounts that need to be reinvoiced to other companies. By assigning tags to specific transactions, such as purchases that need to be shared among subsidiaries, companies can easily isolate these amounts and reinvoice them at the end of the month.
What is the process of setting up intercompany synchronization in Odoo?
-To set up intercompany synchronization, users need to activate the intercompany transactions feature in the settings of each company. Then, they can choose what to synchronize, such as invoices, bills, sales orders, or purchase orders, and assign users to handle these transactions.
How does Odoo handle the reinvoicing of shared expenses between subsidiaries?
-At the end of the period, companies can use analytic tags to aggregate all the shared expenses. By reviewing the analytic items, they can create a single customer invoice or vendor bill to reinvoice the other company, ensuring that all shared costs are accounted for.
How can companies in Odoo generate financial reports without including inter-company entries?
-Companies can create journal groups that exclude inter-company transactions. When generating financial reports, they can apply these journal groups as filters to exclude inter-company entries from the profit and loss or balance sheet reports.
What is the recommended way to handle a tax report for multiple companies in Odoo?
-While Odoo does not support joint tax reports for multiple companies by default, it is possible to enable this feature by adding a system parameter called 'account.tax.report.multi.company' in the technical settings. However, this should only be used when the companies are within the same country.
Is it possible to use a single chart of accounts for multiple companies in different countries?
-No, it is not recommended to use a single chart of accounts for companies in different countries due to the specific accounting requirements in each country, such as different codes and reporting formats. Each company should maintain its own chart of accounts to ensure accurate financial reporting.
How does Odoo support integration with external consolidation software?
-Odoo does not offer direct integration with external consolidation software. Instead, companies can export their accounting entries from Odoo and import them into their consolidation software for group-wide financial reporting.
Outlines
🚗 Introduction to Multi-Company Setup in Odoo
The video begins by introducing a scenario involving a multi-company setup in Odoo, specifically for a company group called 'FPCars.' The consultant must manage inter-company transactions efficiently, as the companies reinvoice each other for shared expenses and revenue. The use case includes handling shared costs, like the new long-distance communication system in Belgium, and ensuring financial reports exclude inter-company entries.
🔄 Synchronizing Intercompany Transactions
This section explains the process of handling inter-company transactions in Odoo. The inter-company transactions feature allows synchronization of purchase and sale orders, invoices, and vendor bills across different companies. It discusses the use of journal groups for aggregated financial reporting, excluding inter-company transactions. Additionally, analytic tags can be applied to identify amounts that need to be reinvoiced to other companies.
📊 Automating Intercompany Invoices and Bills
Here, the process of creating and confirming intercompany invoices is demonstrated, highlighting the automatic creation of vendor bills in the other company's system. The synchronization ensures that once an invoice is confirmed in one company, a corresponding bill is created in the other. The importance of configuring analytic tags and the benefits of automation for accurate and efficient inter-company accounting are emphasized.
📚 Managing Financial Reports with Journal Groups
The focus is on creating journal groups in Odoo to segregate inter-company transactions from regular business activities. This helps generate accurate financial reports, allowing companies to toggle between including or excluding inter-company transactions. A detailed step-by-step guide is provided for setting up journal groups and filtering financial reports, demonstrating how this method can be used to view financial data with or without inter-company transactions.
🔍 Using Analytic Tags for Re-Invoicing
This section covers the use of analytic tags to identify costs that need to be reinvoiced between companies. It explains how to allocate different portions of purchases and sales to various companies using analytic accounts. By grouping by analytic accounts, companies can easily track and reinvoice amounts at the end of the month, ensuring accurate and streamlined financial management between subsidiaries.
📈 Handling Month-End Re-Invoicing and Analytic Items
A detailed example of handling month-end re-invoicing is given, where analytic items are used to track expenses and revenue between companies. The process of creating a customer invoice for reinvoicing is explained, along with the importance of ensuring that all amounts have been properly reinvoiced. The use of analytic accounts and tags allows for detailed tracking and reporting, ensuring no amounts are missed during invoicing.
💻 Frequently Asked Questions: Consolidated Accounting Integration
In this FAQ section, the video addresses common questions about integrating Odoo with other accounting systems for consolidated financial reporting. It explains that while direct integration is often not recommended, exporting and importing accounting data into external software is a viable workaround. Additionally, it discusses how to create a joint tax report for multiple companies by modifying system parameters, particularly when the companies are within the same country.
📊 Customizing Chart of Accounts for Multi-Company Setup
This part answers questions about having a unified chart of accounts for different companies within a group. While possible, it is not recommended due to the differing financial report structures between countries. The video explains the risks of having a single chart of accounts across countries with different accounting standards and recommends keeping distinct charts for each country to ensure compliance with local regulations.
🚨 Avoiding Pitfalls in Multi-Country Chart of Accounts
This section emphasizes the importance of maintaining separate charts of accounts when companies operate in different countries. The structure and numbering of accounts differ between countries, making it problematic to use a single chart of accounts. The video advises against trying to merge charts of accounts for companies in countries like Belgium and France, as it can lead to inaccurate financial reporting.
✅ Conclusion: Best Practices for Multi-Company Setup
The video wraps up with a final review of best practices for handling multi-company setups in Odoo. It highlights the importance of proper configuration, the use of analytic tags, journal groups, and the synchronization of inter-company transactions. The video concludes with advice against consolidating charts of accounts across countries and emphasizes the value of keeping distinct accounting structures for accurate reporting.
Mindmap
Keywords
💡Multi-company setup
💡Intercompany transactions
💡Synchronization
💡Journal groups
💡Reinvoicing
💡Analytic tags
💡Financial reporting
💡Vendor bills
💡Customer invoices
💡Aggregation
Highlights
The FPincars group manages inter-company transactions for shared expenses and revenues across subsidiaries.
The pandemic led FP Cars Belgium to invest in a long-distance communication system for all subsidiaries, with costs paid by Belgium and shared among the other companies.
Odoo's intercompany transactions feature allows for synchronization of purchases, sales orders, invoices, and vendor bills between companies.
Journal groups in Odoo help generate financial reports without including inter-company entries, which is essential for group reporting.
Analytic tags are used to isolate amounts that need to be reinvoiced between companies, such as shared equipment purchases.
Companies can automatically synchronize vendor bills and customer invoices, streamlining inter-company financial workflows.
Synchronizing sales orders and purchase orders is recommended for managing stock movements between companies.
A customized journal for intercompany transactions can help differentiate between regular business transactions and inter-company activities.
Creating journal groups allows companies to exclude inter-company journals from financial reports, offering clearer insights.
Analytic tags can also be used to manage reinvoices based on percentages, allowing for partial or shared expenses between subsidiaries.
Companies can group analytic items by account or month to ensure accurate reinvoicing at the end of a period.
Odoo allows exporting of accounting items for integration with external software used for group-level financial consolidations.
To generate joint tax reports across multiple companies, a technical parameter needs to be added to enable multi-company tax reporting.
Odoo version 15 will introduce a more streamlined solution for aggregated tax reports, replacing the current workaround.
While it is technically possible to use a unified chart of accounts across multiple companies, it's not recommended due to country-specific financial reporting rules.
Transcripts
hello deodorants and welcome to this new
video about multi-company setup
let's see together what we can do in udo
in order to have
a optimized multi-company environment
so let's talk about the use case first
so that you can keep that in mind when
we talk about the concepts
so fpincars group involves a lot of
interactions between the different
subsidiaries
as their consultant you need to come up
with an easy and fast solution
to manage the enter company workflow so
uh the different companies periodically
reinvoiced each other
for the expenses revenue they share
together and due to the pandemic
fp cars belgium has invested into a
brand new long distance communication
system
for all the subsidiaries the costs are
all paid by
belgium but should be supported by the
three companies
um and they also need to be able to see
the financial reports
without the inter-company entries
so how can you handle multi-company
relationships in ado
well it happens often that companies
within a group reinvoice each other
since they can be partners in their
activities
and group their purchases to save extra
costs
what can we use in urdu well first you
have an intercompany transactions
feature
with which synchronizes uh either the
purchases
and the sale orders or the invoices and
vendor bills
we'll see just afterwards how this works
we also can use the journal groups in
order to provide
uh aggregated financial report without
considering the earned inter-company uh
transactions so it happens a lot that
for group reporting purposes they need
to see
their p l their balance sheet or any
aggregated financial report
but without considering all the
accounting entries
meant for inter-company purposes so
the journal groups are a good way to go
in that case and
lastly you can also use the analytic
tags to identify
which amounts to reinvoice to other
companies because
um it can happen so they they make some
purchases they made some sales
and at the end of the month they see
they need to see the share
that needs to be reinvoiced to uh to
the other company so they make us i
don't know the mother company made some
purchases for some equipments
and they need to split the cost among
the diff
between the different subsidiaries in
that case uh we can use genetic tax to
advantage
in order to find these isolate these
amounts
with the proper share uh out of the
total amounts so that you can
find a way to reinvoice this amount at
the end of the month
so let's do that together in the system
so first
we need to synchronize the different
transactions for the inter company
so this actually super useful um
when uh well you you have difficulties
communicating with other subsidiaries
with other companies
the synchronization will enable you to
uh you know shorten the gap the time
that you have between
the communication between uh company a
and benny b
that's where you see okay when they make
the vendor bill i'll have the customer
invoice on my side
automatically put in draft so you need
to go in the settings
uh from the database and
go down to the inter company
transactions
so you need to select this and save
and you need to do this in multiple
companies in both companies
so you have to solve this first so that
you can
design uh well configure this feature
properly
so once this is activated i need to go
back there
and as you can see i can decide to uh
synchronize
a certain uh certain amount of things so
i can decide to synchronize the invoices
and bills
the sale orders the purchase orders or
both
and i can decide to create those as
any user in the system i'll decide to
put this as
autobots because that way i can identify
them
much easier um
i'm going to save and i'm going to do
the same thing for the belgium
company
because it's company specific so i have
to do this every time for
every new company so here it's activated
but
i can i need to choose the
synchronization
here i choose invoices and bills but
there is also an interest in
synchronizing sales in purchase orders
especially if you have
stock moves inventory movements of
between the two companies
it's actually better to use sale orders
and purchase orders in that case
so once this is done it means that every
time that i create
an invoice or a bill for one of them
then it will
be reflected automatically in uh the
other
in the other accounting so if let me
create a customer
invoice from uh the belgium
um the belgium company to the uk
company let's say
sales inter-company dealt
and i'm going to put 10 000
i'm going to save and i'm going to
confirm
as a result if i get so here i've
confirmed it
i should be able to see in
the uk subsidiary i should be able to
see in my vendor bills
one bill to validate here it's
automatically filled in for me so i
actually don't have to do anything
except validating it
i have the vendor which is the belgian
company
with the proper payment reference coming
from the customer invoice
the bill date the label the proper
account
in that case here is cost of sale but it
could be anything
um you just need to configure it
properly and the right price
and i can confirm and that's it so
this is how the synchronization work for
the inter company flow
afterwards if you need for financial
reporting to
split the uh to you know distinguish
all the transaction for your daily
activities and for your business and
all the transactions for the
inter-company flow in that case what i
advise you to do
is creating new journals for
inter-company
transaction so i'm going to call inter
company sales
so one for sales
for let's put this one and put enter
company
sales or inv like this
i'm going to do the same thing for the
purchases
purchase cost of sales
and
yes liquor let's say vanderbilt
like this okay so i have my two journals
so every time that i
make um an entry in those ones
here i can choose the right journal
and if i decide to put here
fpincas as a vendor on the other side i
have a customer invoice
okay purchase into company
2000
i need to put a build date of course i'm
going to confirm
you'll be able to see of course the
customer invoice on
the belgium accounting side but the good
thing is that after you've made that you
can decide
to create a journal group so food
journal groups is just a way to exclude
journals and
use those groups as filters in the
financial report
so here i'm gonna put uh accounting
without inter company
so here i'm going to exclude the
journals
uh inter company
enter company sales and purchases it
means that
when i'm in the bank sheet for example
uh yes so here i have
a lot of different amounts if i want to
uh select all of uh
here as you can see by default i have
the general groups for
without my intercompany
journals but i can decide of course to
include them
as well i can decide to have everything
and as you can see the amounts have
changed so if i decide to just select
again
my journal groups which is much faster
then in that case
uh as you can see the amount here is
only down to nine
thousand if i decide to add the
purchases
it's up to eleven thousand so it's a
good way to see
in your balance sheets the amounts with
the inter company amounts and without
so this is what you should do
lastly um and this is also the case for
a use case um you don't really
know um on a you only invoice
reinvoice to the other company at the
end of the period
so you need to aggregate all the amounts
that you need to reinvoice and make
one single invoice or vendor bill and
the good way to go in that case is using
analytic tags
with 100 distribution behind this so
here i'm on the uk subsidiary i'm going
to put reinvoice belgium
and i'm going to put uh f pin cars
as a analytic account that way
so it means that whenever i have some
bills
or some customer invoices because they
can also reinvoice
revenue depending on the activities
of the business uh the agreements
between the two companies
so i have a vendor bill i can decide to
put
some purchase of goods
and on the attack i'm gonna say hey on
that side i'm gonna have
the reinvoice to belgium i'm gonna have
120 and this is all meant for belgium so
i need to reinvest a whole lot of it if
you need to reinvest only a part of it
if you have previous agreements you can
make
a distribution for less than a hundred
percent
uh you can split along different
analytic accounts
or if it's a one shot in that case so in
this particular case you only need to
reinvoice half of it
then in that case i would put 60 like
this and make a second line
with no analytic tag and then 60 that
way you can get
the whole uh the whole the total amount
but only a split uh reinvoice amount
of the half of it so here i'm gonna do
this i'm
to do this a second time for our
transport fees let's say
480
like this i'm going to confirm and
that's it
so the hormone goes by i'm gonna have
uh vendor bills i'm gonna have customer
invoices
i can have other employees from the the
company
working for me so i have to they have to
reinvoice to me
their salary and so on so that's how it
works and how
intercompany our company can reinvoice
each other
so at the end of the month what i would
do with my clients is go
in the analytic item and
group by analytic account so here i have
only those two so that's easy
but you have lots of it you can filter
on the proper analytic account
why is it interesting to always have the
analytic account and not only the tags
that's because in that case you can
always group by
and have aggregated reporting so that's
always best to have an itec account
behind it and as you can see if i group
by maybe month
because i want to issue an invoice on a
monthly basis
you see that i have to reinvoice to my
to the belgium company 240 pounds so
this is what i'm going to do i'm going
to make a customer
invoice for 240 pounds
let's call it uh we invoice
for june no it was july
sorry and if you even want to go further
and make sure that you haven't forgotten
anything
you can put reinvoice is in here as well
that way you will create a new analytic
item
and you will put the balance down to
zero that way you make sure
that everything is has been reinvoiced
that you haven't forgotten anything
so here i'm going to put 240 i'm going
to confirm
so in terms of analytic analytic items
what happens
in the analytic items if i group by
analytic account
as you can see the balance is down to
zero because i have
my different bills and my invoice on
that case so
everything has been reinvoiced i don't
have to do anything
if i go back to my uh pink cars
belgium company i'm gonna check in my
vendor bill
as you can see i have uh in revenge of
bills i'm gonna have one
for the uk company
in here it's just that
the the tax is uh not the proper one
but uh it's going to be 240 pounds
i'm going to confirm uh why
can't i confirm it uh no no yeah
it's just because the analytic tag is
not uh it's company specific so i can't
save
but i just need to correct that let's
make that together
let's go in the analytic tags we invoice
b
b e i think that's the yeah
you see as you can see the analytic
account
is related to the other company so i'm
just
gonna have to switch
in here and correct that
to make this one available for everybody
i'm gonna go in uh back in
fp cars
vendor bills check this one
confirm it and we're good to go and
having the tag actually helps as well on
that side because that way you can track
what has been reinvoiced to you as
another company of the group so in my
analytic item
i could see here the analytic account
and
the tag related to it so you can always
also do
reporting on your side
okay that's it for me on how you must
handle your multi-company relationships
let's see the last step which is the
frequently asked question
in the multi-company setup our method
company is handling the consolidated
account of the group
in another software they want to
integrate audio with
its uh with it so that they can have our
accounting entries directly in the
software
is it possible so a lot of uh clients
asked us
that question and we tend to decline
this requirement so we challenge this
by just saying that you can easily
export the accounting
items in order to import them back in
their software
um so if they have a consolidation
software
for the whole group and they want to see
the aggregated amounts for
their accounting along between
throughout the group they need just to
export
the accounting individual items and
import them back
in their software is it possible to have
a joint
tax report for multiple companies yes it
is
uh in standard like with standard
configuration it's not
but you just have to add
a system parameter which is a bit
technical
uh so you need to be in debug of course
and go in the settings
because normally in standard the tax
report is company specific and you will
not be able to aggregate this
however it is possible to do this if you
go
in the technical menu and you go way
down to
the system parameters in here
and you need to create a new one which
is called
let me i always forget what it's called
so let me take
the proper key so
account tax report multi-company and you
need to put the value
in one by doing so you will
enable the tax report to be aggregated
along different different companies
however
you must not do that if your companies
of course come from different countries
it's only interesting
if you have multiple companies within
the same country and
you want to see the aggregated tax
report
in in the next version so in version 15
you'll be able to have what we call in
belgium a unity
v80 initiative um
and this will be the replacement feature
for the workaround that i showed you
because
basically a lot of countries need this
kind of aggregated tax reports so
in the next version we have a proper
feature for that
so in the tax report now so here i have
my values in my tax report
of course here you won't be able to see
anything because if i select
for example the french company nothing
is going to happen here because the tax
grades are not the same
so in my french company
i use different taxes with different tax
tax grids
so of course in here i don't have
anything that's related
in the global summary though i'll have
uh both
french taxes and
belgian taxes as well but with no
structure regarding the tax report
for a country-specific tax report but
it will work if you have multiple
companies in the same country
last question we would like to have a
unique chart of accounts for our two
companies belgium and the netherlands
is it possible energy in that specific
case it
is possible why remember when i talk to
you about the financial reports
uh and on which criteria those are based
on
so for belgium financial reports are
based on the code
so of the account so the number of the
accounts
will make the sort out in throughout the
different financial report lines
rather than for the netherlands it's the
tags that are
on the account that will matter so in
that case
having one chart of accounts is possible
because
you can make sure that your child
accounts for belgium
is uh has the proper codes and on the
other side have the right tax on the
other
on the other side technically speaking
it will still be
two different chart of accounts you have
one for company uh belgium company and
one for the netherlands company
but it when they talk uh when your
client says i want a unique chart of
accounts they say they want the same
account the same
number of accounts the same structure
and so on
i would still not recommend doing this
because every
accounting has for each country has its
specificity so it's
always best to keep two different charts
of accounts
when in certain cases it will not work
so for example if you have one company
for belgium and one company in france
you will not be able to put one unique
chart of accounts
because basically both financial reports
in those countries are based
on the number the digits of the account
and the um terminology of
each accounts uh in belgium and in
france are different
so we're not going to have the same
codes throughout belgium
and france so if you choose one unique
chart of accounts your financial reports
in one of the countries are going to be
wrong
so you always advise you to keep you
two distinct or more chartered accounts
because that's the best way to go it
is possible in certain use cases but i
would still advise you not to do it
that's it for me in this video thank you
all for watching and
let's not see each other in the next
topic because that's the end of this
smart class
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