Journals | Odoo Accounting

Summary

This video script offers an insightful guide to the concept of journals in accounting, emphasizing their role in categorizing transactions based on type. It explores five main journals: sales, purchases, bank and cash, and miscellaneous operations, all culminating in a general ledger. The script provides a step-by-step tutorial on configuring journals in an accounting application, highlighting the importance of setting up default accounts, sequences, and activation of the 'log posted entries with hash' feature for immutability. It also addresses the creation of custom journals, such as for salary entries, and discusses strategies for organizing and filtering invoices by region without overcomplicating the journal setup.

Takeaways

• 📚 Journals in accounting are used to categorize transactions based on their type, such as sales, purchases, bank and cash, and miscellaneous operations.
• 🔍 All journal entries eventually consolidate in the general ledger, providing a comprehensive view of all transactions.
• 🛠️ The accounting application may already have existing journals, but users can manually create additional ones as needed.
• 📝 Configuration of journals involves setting up default accounts, credit note sequences, and short codes for easy identification.
• 🔑 For purchase journals, it's important to set a default expense account and a short code to standardize entries.
• 🏦 Bank journals require additional configurations, including a default bank account, which will be covered in a dedicated video.
• 💼 The miscellaneous operations journal also has a dedicated short code for categorizing various types of transactions.
• 🔒 To prevent modification of posted entries, activate the 'log posted entries with hash' feature in the advanced settings.
• 💡 Creating a new journal, such as one for salary entries, involves selecting the appropriate type and assigning a short code for quick reference.
• ✋ The order of journals in the dashboard can be customized by simply dragging and dropping in the list view.
• 🌐 While it's possible to create multiple sales journals for different regions, it's recommended to keep it simple to avoid confusion in assigning the correct journal automatically.

Q & A

What are journals in the context of accounting?

Journals in accounting are a method to organize and categorize transactions based on their type, such as sales, purchases, bank and cash, and miscellaneous operations.

How do journals help in sorting out transactions?

Journals help by providing a specific place to record transactions of a similar nature, which simplifies the process of tracking and analyzing financial activities.

What is the purpose of a general ledger in accounting?

The general ledger is a comprehensive record that compiles all journal entries from various journals, providing a single source to view all financial transactions.

How can I configure a journal in an accounting application?

You can configure a journal by accessing the accounting dashboard, selecting the journal, and using the configuration options available, such as setting up a default account, sequence, and short code.

What is a purchase journal and what configurations does it require?

A purchase journal records transactions related to vendor bills. It requires configurations such as a default expense account, credit note sequence, and a short code.

What is the significance of a short code in a journal?

A short code in a journal provides a quick and easy way to identify and reference specific journal entries, streamlining the process of recording and reviewing transactions.

Why is it important to activate the 'log posted entries with hash' feature in the advanced settings of a journal?

Activating this feature prevents users from modifying or resetting to draft any posted entries, ensuring the integrity and finality of the recorded transactions.

What is the role of a bank journal in accounting?

A bank journal is used to record all transactions related to the company's bank accounts, including payments and receipts, and requires specific configurations such as a default bank account.

How can I create a new journal for specific types of transactions, like salary entries?

You can create a new journal by specifying the type of transactions it will handle, such as 'salary entries', choosing the appropriate journal type like 'miscellaneous', and assigning a short code for easy reference.

Can I create different sales journals based on the region of the sales?

While you can create multiple journals, it's not recommended for sales and purchase journals due to the automatic selection process in the application. Instead, using sales teams as a filter for regional sales can be a better solution.

How can I change the order of journals presented in the accounting dashboard?

You can change the order by dragging and dropping the journals in the list view within the dashboard, allowing you to prioritize the journals as needed.

Outlines

00:00

📚 Introduction to Accounting Journals

This paragraph introduces the concept of journals in accounting, explaining them as a system to categorize transactions based on their type. It identifies five main types of journals: sales, purchase, bank and cash, and miscellaneous operations. The paragraph also discusses how all journal entries eventually consolidate into a general ledger. The speaker guides viewers on how to configure journals in an accounting application, emphasizing the importance of setting up default accounts, credit note sequences, and short codes. Additionally, it touches on the process of creating new journals manually and adjusting their order in the dashboard.

Keywords

💡Journals

In the context of accounting, journals are records that organize transactions based on their type. They are essential for maintaining a clear and organized financial record. In the video, journals are used to sort transactions such as sales, purchases, bank and cash operations, and miscellaneous activities. The script mentions configuring journals in an accounting application, highlighting their importance in the financial management process.

💡Transactions

Transactions refer to the economic exchanges made between companies and individuals. In the video, transactions are categorized and recorded in different journals based on their nature. This categorization helps in tracking and analyzing financial activities, such as sales to customers and purchases from vendors, which are crucial for accurate accounting.

💡General Ledger

The General Ledger is a comprehensive record that includes all financial transactions of a business. It acts as the central repository for all journal entries. In the video, it is mentioned that all journal entries eventually converge in the General Ledger, making it a vital tool for financial reporting and analysis.

💡Configuration

Configuration in the video refers to the process of setting up or adjusting the parameters of journals in an accounting application. This includes defining default accounts, credit note sequences, and short codes. Proper configuration ensures that the journals function effectively and accurately reflect the transactions they record.

💡Purchase Journal

A Purchase Journal is a specific type of journal that records all transactions related to purchases from vendors. In the script, it is mentioned as one of the first journals to be configured, emphasizing the importance of tracking vendor bills and expenses in a business's financial management.

💡Sales Journal

A Sales Journal is used to record all transactions related to sales made to customers. The video script discusses the configuration of a sales journal, highlighting the need for a default account and a dedicated sequence for customer invoices. This helps in systematically recording and managing sales transactions.

💡Bank Journal

A Bank Journal is used to record all transactions related to a company's bank accounts. The video mentions that there are more configurations to consider for bank journals, such as a default bank account. This is crucial for accurately reflecting the company's financial activities related to banking.

💡Miscellaneous Operations

Miscellaneous Operations refer to transactions that do not fit into the standard categories of sales, purchases, or banking. In the video, a journal for miscellaneous operations is discussed, which includes a dedicated short code. This helps in categorizing and tracking various other financial activities that are not typically included in the main journals.

💡Sequence

In the context of the video, a sequence refers to the order or numbering system used for journal entries. Each journal type, such as sales or purchase, can have a dedicated sequence to help in organizing and identifying entries. For example, the script mentions a sequence starting with 'bill' for purchase journal entries.

💡Log Posted Entries with Hash

This feature, mentioned in the video, is used to prevent modifications to journal entries once they have been posted. By activating this feature, users cannot revert posted entries back to draft, ensuring the integrity and finality of recorded transactions.

💡Sales Teams

Sales Teams are groups within a company that are responsible for selling products or services. In the video, the script suggests using sales teams as a way to filter and categorize sales invoices by region. This helps in managing and analyzing sales data based on geographical areas, even if there is only one sales journal.

Highlights

Journals are essential in accounting for sorting transactions based on type.

There are five different types of journals: Sales, Purchase, Bank and Cash, and Miscellaneous.

All journal entries eventually consolidate in the General Ledger.

Existing journals in accounting can be modified, and new ones can be created manually.

The Accounting Dashboard displays all journals, with a filter to avoid seeing all at once.

Configuration of journals can be accessed through a three-dot menu or via the Configuration Menu.

Purchase Journal is used for vendor bills and requires several configurations before use.

Default expense account setup is crucial for Purchase Journals.

Dedicated credit note sequence and short code are part of the Purchase Journal configuration.

Miscellaneous Operations Journal has a dedicated short code for easy identification.

Bank Journals require more configurations, including a default bank account.

Sales Journals, like Purchase Journals, need a default account and short code.

Activating 'Log Posted Entries with Hash' prevents modification of posted entries.

Cash Journals also require configuration of accounts similar to Bank Journals.

Creating a dedicated journal for salary entries is straightforward and involves choosing the Misc type.

Journals can be reordered in the dashboard by simple drag and drop.

While multiple journals can be created, it's recommended to keep sales and purchase journals minimal for ease of use.

Sales Team assignment can be used as a workaround to sort invoices by region of sale.

Transcripts

hello and welcome back deodorants today

we are here to discuss another essential

concept in accounting the journals you

can think of journals as a way to sort

out your transaction in ado based on the

transaction type we identify five

different journals sales for your

customer invoices purchase for your

vendor bills bank and cash for the

payments and finally miscellaneous

operations

in the end all joiners entry are

gathered in one single general ledger

where you can find all the journal

entries of course in a do you will have

existing journals already in your

accounting and based on the applications

that you're going to get you're going to

get more or less journals if you need to

create others you can also create them

manually hey guys here we are in the

database directly where we're going to

configure our journal so let's dive in

directly in the accounting application

so here we are in the accounting

dashboard each box you see

is a journal in your accounting so here

you have be careful because you have a

favorite filter

if you take it out you're going to see

all the journals that exist in your

accounting applications if you want to

configure deeper a journal you can go

directly in the three dots here menu and

access their configuration but if you

can't you want to see all the journals

you can go through the configuration

menu and go in the journal menu directly

so we're going to dive in uh here the

first journal is a purchase journal for

our vendor bills you can see that there

are a few configurations that you need

to do before going live in accounting

first setting up a default expense

account um

decide if you want to dedicate credit

dedicated credit note sequence and of

course a short code basically all the

journal entries that will be created

from this journal will have the same

sequence started with starting with bill

let's go in another another journal here

the one from miscellaneous operations so

you see the type here is miscellaneous

indeed it also has a dedicated short

code

in the bank journals you see that there

are a bit more configuration to consider

uh we will see that in a dedicated video

uh but the important thing is that you

also need a

default bank account here

customer invoices here same

configurations as the purchase journal

so a default in a default account a

short code dedicated sequence but what

you need to understand for both sales

and purchases journals is that if you

want to make sure that when you post an

entry you can't modify it later on so

you can't reset to draft what you need

to do is activate a simple feature in

the advanced settings which is called

the log log posted entries with hash

basically by ticking this you are

preventing the user to uh go back to

draft in posted entries once it's posted

you can't change it afterwards

last journal here for the cash journal

so same as uh same as for the bank

journals a bit also a bit more accounts

to configure

let's say i want to create a dedicated

journals for my salary entries remember

journals are just here to sort out your

transactions so i'm just going to create

a new salary journals

like this the type here salary entries

are miscellaneous entries so i'm going

to choose the misc type and i'm just

going to add a shortcode sal for example

and that's just as fast as it is super

fast super convenient

if you want to change the order in which

the journals are presented in the

dashboard the simple thing to do is just

basically drag and drop in the list view

the order in which the journals are

presented so if i go back in the

dashboard directly you see that my

customer invoice is back in the first

place of the dashboard everything clear

for you kara sounds great so

since it's so easy to create new

journals can i do different ones for my

sales according to the region of the

sales that's actually a very good

question and it's actually a tricky

question because indeed you can create

as many journals as you want in adobe

but regarding sales and purchase

journals i would not recommend having

more

you keep as

few journals as possible because when

you create an invoice from the sales

applications what we're going to see in

a later video

audio automatically chooses the first

sales journals that it finds so if you

have different journals based on the

region of the sale

in that case audrey is not going to be

able to assign the right journal what

right away

you can have another solution also to

sort out your invoices by region of sale

in that case for example you could use

the sales teams so if you assign a

different sales team on the sale order

it will be also visible on the invoice

and you can use this to filter your

invoices so you can keep one uh one

sales journals but having the filter as

you wish okay thanks that's it for us in

this video thank you for watching ciao

tutti