Payments and outstanding accounts | Odoo Accounting

Summary

This video tutorial explores customer and vendor payments in ODU, detailing the statuses of unpaid, partially paid, in payment, and finally paid. It explains the use of outstanding payments and receipts accounts as temporary holding accounts before bank reconciliation. The video demonstrates how to register payments through the accounting app, either in bulk or individually, and reconcile them with invoices or bills. It also addresses how to bypass bank reconciliation for cash journal entries, providing practical steps and insights for managing payments efficiently.

Takeaways

• 💼 In ODU, payments go through statuses: unpaid, partially paid, in payment, and finally paid.
• 📈 Outstanding payments/accounts are used as temporary holding accounts before reconciliation with bank transactions.
• 🔍 To register full payments for multiple bills/invoices at once, select them and click 'register payment'.
• 💡 Group payments option consolidates payments per partner instead of per bill.
• 📋 Registering payments one at a time can be done directly from the invoice or bill.
• 🔗 Direct payment registration from an invoice automatically reconciles it with the bill.
• 💸 Manual payment registration is done through the customers or vendors menu for incoming or outgoing payments.
• 📝 Payments can be allocated to specific bills to mark them as paid in the system.
• 🔍 Information icons provide details on payment journal entries, including date, memo, and journal.
• 🏦 Bank reconciliation is a separate process from bill/payment reconciliation, ensuring all bank transactions are accounted for.
• 🚫 If reconciliation with bank transactions is not desired, it can be bypassed by setting the cash account as the outstanding receipts/payment account in the journal.

Q & A

What are the different statuses of payments in the ODU system?

The different statuses of payments in the ODU system are unpaid, partially paid, in payment, and finally paid.

What is the purpose of the outstanding payments and outstanding receipts accounts?

The outstanding payments and outstanding receipts accounts serve as temporary holding accounts for the time between when a payment is made or received and when it's reconciled with a bank transaction.

How can you register full payments for multiple bills or invoices at once in the Bloom database?

You can select the bills or invoices and then click 'register payment' to register full payments for multiple items at once.

What is the benefit of registering payments directly from the invoice or bill?

The benefit of registering payments directly from the invoice or bill is that the payment is automatically reconciled with the bill, simplifying the process.

How do you manually register a payment through the customers or vendors menu?

You can manually register a payment by going to the customers or vendors menu, clicking on 'payments', then 'new', setting a payment amount and a partner, and confirming the payment.

What does the banner on an invoice indicate when there are outstanding debits?

The banner on an invoice indicates that there are outstanding debits that can be allocated to mark the bill as paid.

How can you view more information about a payment journal entry?

You can view more information about a payment journal entry by clicking on the information icon, which provides details like the date, memo, and journal.

What is the difference between reconciling a payment with an invoice or bill and bank reconciliation?

Reconciling a payment with an invoice or bill connects the payment to the specific bill, whereas bank reconciliation is a separate process where bank transactions are matched with these payments.

Can you bypass the reconciliation process with bank transactions? If so, how?

Yes, you can bypass the reconciliation process with bank transactions by setting the cash account as the outstanding receipts account in the cash journal's incoming and outgoing payments tabs.

What happens when you register a payment from the cash journal without reconciling?

When you register a payment from the cash journal without reconciling, it skips the 'in payment' status and goes straight to 'paid', hitting the cash account directly without using the outstanding receipts account.

What additional resources are recommended for more information on the ODU system?

For more information on the ODU system, it is recommended to check out the documentation and other videos provided by the system.

Outlines

00:00

💼 Understanding Payment Statuses and Reconciliation in Odoo

The video introduces the concept of customer and vendor payments in Odoo, explaining the various payment statuses. It begins with 'unpaid' for invoices or bills that haven't been paid, 'partially paid' for invoices with partial payments, 'in payment' once the full amount is registered, and finally 'paid' when the payment is reconciled with a bank transaction. The outstanding payments and receipts accounts serve as temporary placeholders until payments are fully reconciled. The video demonstrates how to register payments either for multiple invoices at once or individually. It highlights that registering payments directly from an invoice helps automatically reconcile the payment with the bill, and provides insights into how to handle incorrect payments or unlink them if needed. Reconciliation with bank transactions is essential for keeping track of all payments accurately, and the difference between invoice reconciliation and bank reconciliation is clarified.

05:01

💰 Configuring Payment Accounts and Skipping Reconciliation

This section explains how to configure the cash journal to bypass the usual reconciliation process in certain cases, such as when dealing with cash transactions. By setting the cash account as the outstanding receipts account in the journal's settings for both incoming and outgoing payments, users can skip the 'in payment' status and mark payments as 'paid' immediately. The video demonstrates how this works by registering a payment from the cash journal, which directly hits the cash account without requiring reconciliation with outstanding receipts. This can be useful in scenarios where bank transactions are not recorded, like cash payments. The video concludes with a reminder to always strive for reconciliation for transparency, but offers flexibility for certain circumstances.

Keywords

💡Customer and Vendor Payments

Customer and vendor payments refer to the transactions made by customers to pay for goods or services and by vendors to receive those payments. In the video, this concept is central as it discusses how to manage these payments within an accounting system. The script mentions registering full payments for multiple bills or invoices at once, indicating the automation of this process in the system being discussed.

💡Outstanding Payments

Outstanding payments are amounts that are due but have not yet been paid. The video script uses this term to describe the status of invoices that have not been fully settled. It is mentioned that these are tracked using special accounts in the accounting system, highlighting the importance of keeping accurate records of payments that are pending.

💡Reconciliation

Reconciliation in the context of the video refers to the process of comparing and matching financial records with actual bank statements to ensure accuracy. It is a critical step mentioned in the script for maintaining transparency in financial records. The video explains that while payments can be reconciled with invoices, a separate process is required for bank reconciliation.

💡Invoice

An invoice is a bill that an individual or business issues to a client or customer indicating the amount due for goods or services. In the script, invoices are used as examples to demonstrate how payments can be registered and how their statuses change from unpaid to partially paid, and finally to paid.

💡Accounting App

The accounting app mentioned in the video is a software tool used for managing financial transactions and records. It is the platform where the actions discussed in the video, such as registering payments and managing invoices, take place. The script describes navigating this app to perform various accounting tasks.

💡Unpaid

Unpaid refers to an invoice or bill that has not yet been paid. The script explains that when an invoice is unpaid, it is recorded as such in the system until a payment is made, at which point its status changes to reflect the partial or full payment received.

💡Partially Paid

Partially paid is a status that indicates an invoice has received some payment but not the full amount due. The video script uses this term to describe the intermediate state of an invoice before it is fully settled. It is part of the workflow for managing and tracking payments within the accounting system.

💡In Payment

The term 'in payment' is used in the script to describe the status of an invoice or bill once full payment has been registered but before it has been reconciled with a bank transaction. It signifies that the payment process is underway but not yet complete.

💡Bank Transaction

A bank transaction refers to any financial activity that affects a bank account, such as deposits or withdrawals. In the video, bank transactions are used to reconcile payments with the actual money that moves in and out of the business's bank account, which is a key part of ensuring the accuracy of financial records.

💡Outstanding Receipts Account

The outstanding receipts account is a temporary account used in accounting to record payments received but not yet reconciled with bank transactions. The script explains that payments are first recorded in this account and then balanced once they are reconciled, illustrating the flow of financial data in the system.

💡Manual Payment Registration

Manual payment registration is the process of entering payment information into the accounting system without automatic processing. The video script describes how payments can be registered manually through the customers or vendors menu, which allows for flexibility but requires more effort and attention to detail to ensure accuracy.

Highlights

Exploring customer and vendor payments and outstanding payments accounts in ODU.

Invoice or bill status tracking: unpaid, partially paid, in payment, and finally paid.

Outstanding payments and receipts accounts serve as temporary holding accounts.

Payments are registered in ODU and initially hit the outstanding account.

Payments are balanced once reconciled with a bank transaction.

Registering full payments for multiple bills or invoices at once in the accounting app.

Option to group payments for one payment per partner.

Registering payments one at a time directly from the invoice or bill.

Automatic reconciliation of payment with the invoice or bill upon registration.

Ability to unreconcile a payment if registered from the wrong invoice or bill.

Reconciliation is between the payment and the invoice/bill, separate from bank reconciliation.

Manual payment registration through the customers or vendors menu.

Allocating outstanding debits to mark a bill as paid.

Viewing payment journal entry details such as date, memo, and journal.

Connecting to the bill or invoice and the journal entry for the payment.

Bypassing bank reconciliation in cases like cash journal transactions.

Setting the cash account as outstanding receipts account to skip the in-payment status.

Direct payment to the cash account, bypassing the outstanding receipts account.

Recommendation to reconcile bank transactions for transparency.

Documentation and other videos for more information on the process.

Transcripts

welcome back Deo doers in this video

we'll explore customer and vendor

payments as well as the outstanding

payments accounts in ODU we have

multiple statuses to help keep track of

our payments first an invoice or bill is

unpaid this one's pretty

self-explanatory next If part of the

invoice has been paid but it isn't fully

paid the status will be partially paid

once the full payment has been

registered the status is in payment and

finally once the payment is reconciled

with a bank transaction the status is

finally

paid the outstanding payments and

outstanding receipts accounts are used

as temporary holding accounts for the

time between when a payment is made or

received and when it's reconciled with a

bank transaction so when the payment is

registered in ODU it hits the

outstanding account which is then

balanced once the payment and the bank

transaction are reconciled let's take a

look at some payment in our Bloom

database first we'll go into our

accounting app and we'll look at our

invoices if we want to register full

payments for multiple bills or invoices

at once we can select them and then

click register payment then we have the

option to group payments so we'll have

only one payment per partner instead of

one payment per

Bill if instead we want to register

payments one at a time instead of in CL

then we have two options first we can do

it directly from the invoice or bill so

if we open an invoice here we can click

on the register payment button we can

edit any of this information that we

need to and the benefit of this method

is that this payment is automatically

reconciled with this

bill so we can see this payment Banner

telling us that the status is in payment

and down here on our little information

icon we can actually see the link to the

payment that we just registered and we

have the ability to unreconcile the two

if we registered the payment from the

wrong invoice or Bill it's important to

note that this reconciliation is just

between the payment and the invoice or

bill and it's different from the bank

reconciliation where we make sure all of

our bank transactions are accounted for

second option is to register a payment

manually through the customers or

vendors menu depending on if it's an

incoming or an outgoing payment that we

want to register when we do this we can

click on

payments

new and we just need to set a payment uh

amount and a partner so for the partner

we'll say Acres lawn care and for the

payment amount will say €

30250 so we'll go ahead and confirm

this and now we'll go back to our

invoices and if we look at an invoice

for this partner we can see we have a

banner telling us that we have

outstanding debits that we can allocate

to mark this bill is paid and at the

bottom it even gives us a little list

here of any outstanding debits for for

this vendor where we can select which

one we want to allocate to this

bill again we have the information icon

to get information on the payments

journal entry uh like the date memo the

journal Etc and for more information we

can go directly to the payment Itself by

clicking

View and here on the payment we have

smart button connecting us to that bill

or invoice and uh we also have one

taking us to the journal entry for the

payment which we'll click on and from

there we have yet another smart button

to the reconciled

items where we can see the two items

that both hit the account payable again

remember that this reconciliation is

just the connection between the bill and

the registered payment bank

reconciliation is a separate process

where we match Bank transactions with

these payments and what do you thought I

don't want to reconcile these payments

with my bank transactions can I bypass

that so I'd always recommend reconciling

your bank transactions for full

transparency but there may be some cases

like on a cash journal for example where

you might not record transactions and

you might want to skip the

reconciliation process in that case what

we can do is go to the journal we'll

open our cash Journal here and in the

incoming payments tab we will unhide the

outstanding receipts account field and

we're going to set the cash account

which is the main account of the journal

itself as outstanding receipts account

if we left it blank it would instead use

the default account from the settings

but since we specify this account it

will use this instead and we'll do the

same in the outgoing payments tab we'll

unhide the outstanding payments receipt

or account and put the cash account

there now we can go into one of our

unpaid

invoices and when we register a payment

from our cash

Journal we'll see that it skips the in

payment status and goes straight to paid

and then if we want to see the journal

items of that payment we can go view

journal entry and here we can see it's

going to hit the cash account directly

instead of going going to the

outstanding receipts account so you

won't need to reconcile this

payment that's all for this video be

sure to check out our documentation and

other videos for more information this

has been your palal I'll see you in the

next one