Analytic Accounts in Odoo 16
Analytic Plans and Analytic accounts in Odoo 16
Odoo Accounting app
Odoo offers an integrated environment with all the modules or apps fully interconnected with each other. The finance function is managed by the Odoo accounting app. The Odoo accounting app covers all the basic accounting needs of a company and includes the key financial functions and reports.
Some of the key functions covered by the accounting app is managing customers including invoicing and customer payments. Vendor bills and payments to vendors is included. Odoo accounting app defines customers and vendors as business partners so a vendor can also be a customer and vise versa.
Tax setups are a powerful function of the Odoo accounting app, tax legislation of several countries are in-built with the app. In UAE for example the VAT tax calculations are in built and the system can provide a VAT report for reporting and tax submission purposes.
Odoo 16 allows you to classify and analyze your accounts through the Analytic accounts and Analytic plan feature. This is very helpful for companies offering multiple services or products and would like to analyze the profitability of the products or services through Odoo.
Typically companies tend to build their chart of accounts around the products or services they offer. It is common to decide on individual Revenue and Cost accounts for each product or service. This makes your Chart of Accounts very long and difficult to handle.
Using Analytic Plans we can have a single revenue and COGS account for all services or products sales. Simply tag the Analytic accounts to sale and expense transactions and Odoo to make sure you can analyze them later at the reporting level
Project based customers for example can create a Analytic account for each project and easily analyze all the expenses consumed against the project and calculate the project profit margins.