Streamline Your Billing with the International Invoice Format for Accounting

International invoice format for Accounting

hi all welcome to a new webinar I think my voice is clear and screen is visible to all so let's wait sometime and start in a few minutes I think we can start now today we are going to discuss about ao80 accounting module the process of reporting documenting illustrating and some mizing financial data is referred to as accounting an organization or business cannot function without accounting it serves as a primary point of contact for all type of commercial dealings accounting has been refreshed over the years as a contained system for maintaining Financial records and supporting an accountant's responsibility so the main objective of this webinar is to inform other people and end users about the od8 accounting module we will concentrating on the main features like chart of accounts taxes journals and multicurrency management Etc and new enhancement in the accounting module in this session so before starting let me introduce myself and my company I'm subish functional consultant at Cy brosis Technologies Cy brosis is a certified official level Odo partner company that provides Odo implementation Odo customization and align Serv services in Odo software this company is nailed several successful project and is known for providing the most advanced and highly Reliant business management solution in ODU so why Odo Odo is an open source Erp solution which is growing every day and has millions of uses the main reason is that Odo includes wide range of business applications including Trading accounting HR modules customer relation management Etc so Odo is easily customizable cost effective and there are lots of options for integration and customization the main advantage of Odo is that which releases an advanced version in every year so let's discuss about the main topics of accounting module of Odo 18 Enterprise version in this webinar we will concentrating on chart of accounts tax configurations journals payment terms invoices and bills customers fiscal position multicurrency management budget management Asset Management default accounts deferred expenses and deferred revenues L dates and Reporting so the chart of accounts contains a list of all the accounts that are used to record financial transaction in general ledger of a company this account list will help help a corporation keep track of all its Financial transactions one of the difficult accounting management task that demands accurancy in execution is tax calculation tax computation has become much easier since the Odo accounting module was introduced journals recording all of the accounting transaction in accounting journals is crucial a record of transaction organized by day is called an accounting Journal users can establish sales purchase Bank cash credit card and miscellaneous journals in od8 which record the business transaction in this journals by adding journal entries after generating the appropriate accounting Journal payment terms each organization has unique techniques for collecting for payments create a new payment method and use them making invoices and bills depending on the company regulations the terms of payment will specify the circumstances in which payment is made fiscal positions for various Nations there will be variation in exchange rates and tax procedures Odo 80 will assist in developing the necessary rules to automatically change the taxes and accounts of the company utilized for business purposes using the fiscal position s multicurrency Management so in Odo 80 multicurrency features allow the business to handle transactions invoices and accounting in multiple currencies providing flexibility for Global operations it includes automatic exchange rate updates accurate currency conversions and comprehensive reporting to streamline International Financial Management Asset Management in ODU 18 streamlines the tracking depreciation and disposal of company asset through an integrated and automated system it ensures accurate financial reporting with schedule depreciation entries customizable asset categories and seamless integration with accounting modules budget Management in ao8 accounting analytic budget management helps the business plans allocate and monitor budget effectively by linking them to analytic accounts and taxs this features ensures better Financial control and support data driven decisions making to stay aligned with the business objectives duer expenses expenses that have been inquired but are not yet payable are known as Duffer expenses duer expenses are crucial because they give firms a mechanism to account for cost associated with asset that will be used over an extended period of time next one is defer Revenue defer Revenue feature is especially helpful for business that provide subscription services or having a recurring Revenue model because it's make it possible for companies to monitor client payments made in advance for goods or services that have not yet been received the last one is reporting reports are necessary in an any organization in order to comprehend and the operational stage at which a firm is working a financial report that provides an overview of the company's finances specify some of the most not worthy reports and graphs on the company's profit and loss treatments and other Financial characteristics so let's move to the ODU 18 accounting module features open the accounting module so here we can see the dashboard of AO 18 accounting module the dashboard contains some favorite journals like customer invoices ventor bills Bank miscellaneous Etc here we can see the details about the uh particular journal from the dashboard itself and by clicking on this three dots or three uh dots from here we can create a new invoice uh credit Noe and we can upload invoices from here to view invoices CR credit note payment matching Journal items we can use this options and here also the invoice analysis report and AED reable reports are available from the dashboard itself we can customize our Journal by choosing this colors and if you want to remove this particular journal from the favorite list we can use this and by using the configuration button from here we can move to the configuration of this particular Journal so let's start with chart of accounts as I said before chart of accounts is a list of all account that are used to record the financial transactions of a company so you can access the chat of accounts platform from the accounting modules configuration button or configuration know so you can effortlessly manage the current accounts as well as establish a new one based on your needs so let me choose this chart of accounts so here we can see which contains a list of accounts with code account name type allow reconcilation company and such Wheels here the account type State the type section which is used for informational or informational purpose to produce legal reports tailored to certain Nations to establish the guideline for concluding a fiscal year and to produce opening entries and the account enables Journal item matching between invoices and payments by turning on this allow reconciliation model or this allow reconciliation box so if we want to create a new account we can click on this new button then we need to add some code and we need to specify the account name I'm adding it as export sales then I need to choose the type from here or here I'm choosing this account as an income type then by using this view we can view the configuration of this particular chat of accounts here we can see the code code and the account name from here we can change the account account type also here we can set default taxes and disallowed expenses here the tax is an optional tax you may want to assign for custom reporting and the allowed journals specify which Journal this account can be used and if you want to allow the reconcilation we can enable this box and if you want to duplicate this account we can enable this checkbox and we can specify account groups here and we need to specify the company name after adding the changes we can save this chart of accounts here the accounts debit and credit balances will be displayed by this balance button so the next one is tax so we get uh the tax option under this configuration menu and we can choose the taxes from here with list previously configured taxes with tax name description tax scope uh tax type label on invoices company and Etc to create a new one click on this new button in the tax name area give the name of the new tax and you can choose between the sales tax and uh sales or Purchase Tax type here it chooses the area where the tax can be choosen the tax cannot be used individually when the value is none then but it may be applied to a group by choosing the appropriate choices in the tax scope field you can limit the application of tax to certain class of goods to conceal the tax without deleting it set the taxes active property to false you can choose uh from the tax uh group of taxes pixstar or percentage group of taxes fixed percentage percentage of tax included choices in the tax computation field to specify how the taxes will be computed if we choose the group of taxes the taxes actually a collection of sub taxes and the sub taxes are uh what used to calculate the overall tax using the add align option here we can uh mention the t uh the sub taxes under the definition Tab and the next one is fixed we can specify a fixed amount of uh for the tax year and uh by using this percentage we can add a percentage amount here and this P this particular percentage is calculated as tax and if we choose a percentage of tax included which have another calculation for tax and we can add the percentage here currently I'm choosing the type as uh percentage and I'm name the tax as V tax and here I'm specifying the tax percentage as 25 percentage and inside this definition we can mention the distribution uh of this particular tax for invoices and the distribution for refunds and let's check the advanced option here we can add add uh the label of invoices so this label will visible inside this uh invoices and we can add any description here I'm adding uh just a description for vat a and here we can see the tax group so this particular tax is included in this particular uh Tax Group group we can see uh or we can uh create a new tax group from here and we can add the payable reable or such accounts from here and here uh we can specify the company name and the country so the amount calculated by this tax will be assigned to same analytic account as the invoice line when we include the analytic cost currently which is not available here and uh details about the company and Country can be specified here if the price uh you use uh on the item and invoice contained in this tax turn on the included in price Feld and turning on the effect of base of subsequent taxes it will have an impact on the taxes that come after after this one in a sequence and here we can mention a legal note legal note is a newly introduced in ODU 18 the we can mention the legal mentions uh that have been printed on this invoices am adding a vat tax of 205 percentage as legal note then let's save the taxes so the new taxes added inside the list then let's move to the next session which is journals so for recording all the accounting transaction we use the accounting journals we can move to journal from this configuration menu here which shows a list of previously configured journals with Journal name type short code and default account we can use this new button to create a new one first we need to speci despite the journal name here I'm adding the journal name as sales Journal so uh the company uh from will uh or the company name will automatically fill in this with your company name you can create journals in Odo 18s for sales purchase Bank cash credit card miscellaneous Etc currently I'm choosing a sales Journal so we get uh or we can specify the accounting information for the entries in this journal under the journal entries tab on this page you can specify the default income account and uh if you don't want to share the same sequence for invoices and credit note from this journal you can enable the credit note uh or dedicated credit note sequence feature and dedicated debit note sequence is enable or check this Bo if you want to share the same sequence for invoices and debit note made from this journal and the short code field you can uh indicate the shorter name that will be shown inside the invoice uh this prefix will uh used by default to name the items in this journal you can specify the currency in the relevant field or uh that was used to record the accounting statements here I'm adding uh the short code AS sale then inside the advanced settings we have sessions like control access payment communication and create invoices upon emails so you can manage uh access by stating the allowed accounts in advanced settings keep the field blank if you don't want to set any control for accounts any enabling the lock postered entries with hash option will result in the accounting entry or invoice receiv receiving a hash as soon as it is posted let me or enable this and here we can see the auto check option the entry that has been posted uh then become locked you cannot uh change by longer by enabling this uh posted uh entries with secure at uh hash and the next here the auto check uh is on then uh the post is enabled then here the uh we can specify the payment communication method inside the communication type section to make it easier for the customer to remember to refer the specific invoices when making the payment you may select the default communication that will appear or the customer's invoice once it has been validated open based on invoice or based on customer is available here for each sort of reference you can select different models and communication standard column also and the audo references is used as default one here then it's possible to make invoices based on email by specifying a email server here after adding such details we can save the journal and here we can see a smart t journal entries this will show all the journal entries created by using this particular journal and the next one is payment terms we can configure different payment terms from here so we can click this new button to create a new payment term you can enter the name of payment terms and Company in the corresponding field can I'm adding uh the name as within 30 days then we can mention the company name here then the addine button under the due term section you can specify the payment terms in the due type field you can choose uh the type of value that correspond to this particular payment term slide uh it could be a fixed amount or a percentage then we got an option to give early discount to the customers here by enabling this early discount uh you can enter the early payment discount offer for this line in a discount area indicate which indicates the number of days left before the early payment proposition expires in the discount days field after setting up this payment terms you can use them to create records of vendors or customers in the sales and purchase tab of the contact form uh currently here I'm adding a 50% discount paid within 5 days then let's save this so the new payment term is created so we can simply drag this payment terms like this um then let's check where the configured payment ofs taxes journals are used for that I'm creating a customer invoice we get customer invoice option under this customers menu then let's click on this new button to create a new want here I'm choosing the customer as Deco edit and I'm adding the payment date here and we can choose the payment uh terms here I'm choosing within 13 days as uh payment term and we can change the sales Journal after that under the invoice line we need to specify the product name I'm choosing some random product here we can see the account quantity and sales price from here we can simply add a tax which uh here I'm adding a tax which we already configured after adding such details we need to confirm the invoice after confirming we get uh the journal entries from this journal items tab we can choose the journal items here both income account and receivable account will be affected as a result of the sale the revenue of company is increased uh and the income also increases so the amount is credited to the income account as assets grow the receivable account is debited by the amount so here also the tax account is shown as credited whether the account should be credited or debited which is depends upon the type of accounts then we here we can see the entry is locked which means uh uh we enable the locked entries with hash option inside the journal that's why we cannot edit this particular uh customer invoice after confirming we get a preview of the customer by using this preview button so from here we can see the legal note which we added inside the tax and we can see the authorized signatures uh or the signature of authorized employees and total invoice amount is shown in words this two options uh we get only after enabling uh the uh some options from uh the settings which we uh discuss later and we can go back to edit mode by clicking this after confirming an invoice we can simply pay the invoice by clicking on this pay button then here we can see early discount is applied here just because we pay the amount uh today so here the 50% of uh the total invoice amount uh added here we can create payment from here and after that we can go to the payments and we can validate the payment from here so here we can see the journal entries from the journal entries here we can see the early discount payment is added inside the cash discount loss and which is debited here this is how an invoice is created so we can uh simply create a credit node from the invoice itself we can click on this credit node button and we need to add uh the reason or I'm adding a reason as damaged like that then we can see the journal and the reversal date after clicking on this reverse we can see a reverse invoice is created and we can simply confirm the credit note you can provide credit note for your clients in uh in the event that errors are made in invoice the supplied goods or services or the payment uh then the credit note can be created to reverse an invoice or uh a charge so you will find a separate PL platform under the customer's menu in Odo a accounting to manage the customer credit noes here we can see all the creat created credit nodes then let's move to ventor bills you can create a vendor involved in ODU 18 accounting module by making purchase from a vendor so we can create a vendor bill from uh here itself all payment information for the purchase made by your business from a vendor will be documented on the vendor Bill following the confirmation of purchase order you will be given an option to create create bill in order to have an Associated ventor Bill generated automatically so from here we can create a new journal or sorry ventor Bill here we can see the ventor bill uh details we can mention the vendor here we can uh add the bill date and accounting date separately after adding this digs we can aut complete this by using a uh old build or uh using a purchase order we need to specify the product details I'm choosing the same acostic block screen and we can confirm the bill from here and here we can see the bill is paid and uh this particular uh in this by using this particular Journal it's possible to edit it uh we can uh use this reset to draft button to edit the created invoice or sorry the uh bill then by using using this action button we have an option to uh create a debit note from here if you want to create a debit note we can use this particular uh option to create a debit note from here debit note will create another build in some circumstances so here we can see the account accounting journal entries like here the expense account and uh account payable is if the payable account uh and the expense account here due to the fact that the payable account's nature is liability it will credited on the other hand because the expense amount is uh an expense account so it is debited here this is how the invoices and bills handle in this ODU 18 accounting so I think it's clear then let's move to the next topic which is fiscal positions as I said before various Nations use different uh taxes and currencies so by using Odo 18 accounting module we can easily uh process the tax mapping so for that we need to choose the fiscal position option under this configuration menu and to create a new one click on the new button here we need to specify the uh tax position or fiscal position name here I'm adding the name as tax mapping then it automatically determine the customer's tax rate by location turning on the used Tax Cloud API then you may see the name of your company in the company field Odo 18 will automatically apply the fiscal position based on the place you choose if the det automatically option is turned on Once you turn on this option you will have access to two more choices namely what required and country group by turning on the V tried option Odo only consider the partner for this fiscal position if they have a v number only if the delivery country correspond to uh the group or group of Nations indicated in the country group and country field will the fiscal stance be applied here I'm adding a country group uh as Indian then click on the create and edit button here we can specify the country I'm choosing uh the country as India then the tax mapping tab allows you to add the tax that will be mapped to this financial situation you can specify the tax you want to substitute in the tax on product Box by clicking on the add a line button so I'm choosing uh 15% uh sales tax to this V tax and here the tax to apply section allows you to specify the tax that you want to apply to the financial situations uh here also we can see if you specify an account you wish to use for this fiscal position in the account on product and account to use inst sessions respectively under the account mapping tab here I'm choosing uh the product sales account and I need to use uh this export sales sorry the export sales account instead so let me save this one so here I'm enabled detect automatically I need to map uh 15% sales tax to V tax and uh the uh product sales account to export sales account uh here I'm creating an invoice for a particular customer I'm choosing a customer Joel here we can see he's an inter customer then I'm choosing the invoice date and I'm choosing a product um AC costic block screen let me check the product here we can see okay currently there is no uh taxes here I'm adding a 50% tax here on uh the acostic block screen white then let me add the same product again so here we can see uh we added a 50% tax inside this uh inside the uh product but uh here that taxes applied and here the account also changed just because let me check the other info here we can see the fiscal position tax mapping is applied so just because this uh here the fiscal position is automatic automatically detected just because the customer is from India so let's confirm this this is how the fiscal position works then let's check how the multi-currency management happens in Odun 18 so under this configuration menu we have currencies option AO offers its users support for many currencies so they can expand their Enterprise into Global Market Place we can use this currency option from configuration menu then you can set up several currencies in your system here we can see a list of currencies currently I'm enabling one more currency uh I'm searching for INR here we can see the currency is uh not activated yet we can simply activate it by clicking on this active button while open this here we can see the currency name uh or the uh active option and here we can see the symbol currency unit and currency subunits here we can see the rates the last updated date of this particular currency is uh the updated date is 112 uh 2010 and here we can see the company unit per USD and unit per uh here we can see uh the unit we can simply add the exchange rate by clicking on this add align button currently I'm not adding uh a new rate so now let's check how uh the multic currency works for that I'm using uh this active currency inside the invoice clicking the new button I'm choosing one customer uh Jo the same customer and I'm adding the invoice date as September 1st or I'm choosing the invoice date as August 1st and here we can see the due date and I'm choosing uh uh the currency INR here after that let me add one product uh without using any tax here we can see the amount is sh uh in currency like INR after that uh let's confirm the invoice so the invoice is confirmed as I said before we can add the currency rate by manually by using add align option inside the currency besides that we have an auto aut atic option inside the settings so here we can see automatic currency rates option by using this we can update the exchange rate automatically here we can see the service and interval we can choose interval as manually daily weekly monthly Etc then we can update the currency by clicking on this icon after that uh so we need to wait some time after refreshing let's check the option again yes here we can see uh the currency rate will automatically updated for that uh let me check inside the currency yes here we can see uh the newly updated rate is added here which is 84 uh something I'm copying this value and and move back to the invoice here no it's not the invoice let me check yes here we can see the created invoice we can pay this and here we can see the payment uh dat is added here and we can see the total amount in INR let me create a new payment after that we have a report named unrealized currency gain or loss report under this reporting menu let me choose this and here we can see the invoice which we created yes this is our invoice uh here we can see the amount is updated here and here we can see balance in foreign currency which means the amount which we paid or the invoice amount is shown here and here we can see the balance at open rate which means uh the uh uh which means the actual sales price of the product is 295 and here we can see balance at current rate uh let me check how the calculations happens for that I'm opening a calculation here uh we can see uh the balance in foreign currency is added here which is an amount uh and we need to divide the amount with our current rate then here we can see here we can see uh the amount uh 29.1 199 and which is updated as the current rate which means which is the balance at current rate and the difference between balance at operation rate and balance at current rate is updated as adjustment then this is how the exchange rates uh shown and it's also possible to add manual exchange rate from here we can add uh some more amount like I'm adding 19 inrs then the corresponding value will change this is how the exchange rates and multicurrency management in oudo 0 then let's move to the next session which which is journal entries inside the accounting here we can see two options one is General entries and the second one Journal items the transactions can be entered as a journal entry in the journal the accounting date amount to be debited and creditor the reference information and the description of transaction all are recorded in the suitable journal entries here we can see all the details and the double entry bookkeeping system in ODU requires at least one credit line and One debit line and uh have an equal amount of debit and credit is accepted so the journal items are the individual lines that makes a journal entry here we can see the journal items the accounting menu of this module will access to both journal entries and journal items here I'm choosing the journal entry we can manually uh here we from here we can view all the journal entries created and it's also possible to create a manual journal entry from here for that click on the new icon then the reference sessions can be used to uh site any source that have been relevant to this journal post the relevant field will display the entries accounting date to enter the uh this entry into your Journal then choose an appropriate journal from the option provided using add Aline option we can add the uh Journal items here I'm adding a miscellaneous Journal then inside the journal items we can add the accounts so just for an example here I'm choosing an account uh cash and I'm adding an amount of 200 as credit and I'm choosing another account petty cash and the amount debited as 200 after adding the accounts we can click this post button then the entry uh is posted now this is how a miscellaneous journal entry is added uh then we can uh here inside the journal entries we have option to filter uh the journals or we have option to group by this uh journals and here I'm choosing the group option then here we can see under miscellaneous yes here we can see the journal entry which I created this is uh about the journal entries and let's move to the customers the customers menu contains uh the option customers and from here we have a list of or this is the uh Canan view of customers we can uh see it in a list view by clicking on this and we have filters Group by options here uh to create a new customer we can use this new button here and currently open an existing customer then all the accounting details about this particular customer is uh we can view it from the accounting tab here we can see the details like bank accounts customer invoices automation followup levels accounting entries like that and here inside the accounting entries we can see account receivable and account payable here the account receivable uh this account will be used instead of the default one as the receivable account for the current partner then the next one is account payable this account will be used instead of the difficult uh sorry the default one as the payable account for the current partner then here we can see autop poost Bill options which is new in ODU 18 I think this option is used to automatically post bills for the trusted Partners we can choose uh three options uh either always then the uh for this uh this particular uh partner is considered as a trusted one and the bills will always autop posted and ask after three validation without edits then we can uh only autop poost the bill after three validation of uh some other bills without any edits then never option will not autop poost any uh bill of this particular partner then here we can see the followup levels which is a new updation in Odo 18 the followup levels uh you may locate it uh uh you may locate and take care of the late payments with the use of the ODU 18 followup reports followup levels are located inside the configuration menu here from here we can uh yes from here we can config fig new followup levels which is nothing by using this followup levels we can follow up the uh payments uh which means if any payment due is happened we can follow up the uh particular customer using this followup levels and inside the customers here we have uh or we can see the followup levels uh after 15 days 13 L uh like that here we can see the reminder can be either set as automatic or manual we can use use the send button to send uh the invoices to remind the partner and here we can add the next reminder date and we can add a responsible person for this followup then the uh some other newly updated feature is the send money option which means sending invoices with a uh fraud account number is a common uh problem or the uh to Pro protect yourself always verify a new bank account number preferably by calling the vendor as uh use usually happens when their emails are compromised once verified you can activate the ability to send money to get this uh send money option the user needs an access right of bank as validated bank account here let me duplicate it Tab and we can check the users here inside the accounting rights of here we can see the bank uh the access rate of bank so from here we can choose validate bank account the user only with the access of validated bank account can uh see this send money option then one of the newly updated feature is this customer statement by clicking on this we can directly lead to the partner Ledger of this particular partner we can view the partner Ledger from here and it's also possible to uh download this partner Ledger by clicking on this particular button so here uh from uh this PDF we can uh simply download this particular partner Ledger and inside the action button also we have open customer state payments from here also we can move to the partner ledge which is also an updated feature in 0 then let's move to another case uh if a customer I'm choosing an invoice for One customer uh Deco edit the same customer uh I'm adding a product with uh $750 and the invoice date is set as December 1st and and the payment is actually immediate payment so here we can see uh the payment is due and we can see this two inside there is an option like aged receivable so inside this aged receivable uh this are the reports on the outstanding invoices the payment will uh fall under the category of AG reable if the customer does not pay the invoice even after the day specified in the payment terms so we created an invoice who the partner de it and let me check my invoice here here we can see the created invoices here with the amount so uh which is in between 1 to 13 days which means the due is between 1 to 13 days as similar if uh there is any payment du in case of vendor here we can see I'm doing the same thing and payment as immediate payment and I'm adding one random product uh with an amount uh $200 after confirming this this will visible inside the Aged payable which means the Aged payable platform displays the delayed payment reports similar to aged receivable platform platform this postponed payments are uh supposed to be sent by your business to the appropriate partner prior to the due date so we can see the Aged yes aged payable report and which is for Aur interior here we can see the bill and which is also in between 1 to 13 days then here we can see the accounts uh as I said before we can see The Ledger from here inside the journal item so this uh accounts are uh we actually we configure this account inside the product here we can see um inside the product option I'm using or I'm opening random product under the accounting tab here we can see income account expense account and price difference account here we can specify the income account of this particular product or the value uh that will be stored inside this income account and here we can mention the expense account and price difference account uh besides that we have option to set this account inside the category also here also we we have option to set the uh income and expense account and we can set uh the same accounts inside the journals and also inside the settings so uh the priority of the uh accounts will uh move from products product category Journal settings Etc and ing to the priority the accounts will chosen inside the bill or uh invoices so the next one is asset the Odo 18 accounting modules instruction has made Asset Management simpler the platform especially designed for managing asset both for long-term use are available in Odo 18 the fixed asset will be eventually lost value as a result of depreciation over time so let's start by creating an asset model we get the asset model option under configuration menu and while scroll down here we can see aset model under this management session as seen in the screen ODU 18 will direct uh or which will shows the asset name fixed asset account depreciation account method number of depreciation and period length will be uh displayed in the list of asset models we can create a new one by clicking on this new button then here you can enter the name of asset model in the asset Model area and you have three options for depreciation methods which are straight line declining declining and straight line so a popular and simpler to calculate depreciation method is straight line you may figure it out by dividing the gross value by the time frame and the second one is declining you can specify a decreasing Factor when using the declining technique then multiplying the value by the designed declining Factor yields the value then the above mentioned strategies or the straight line and declining where are combined in declining then straight line approach which means the straight line value serves as minimal depreciation value and it functions similar to the declining technique let's discuss uh each one before that here we can see a duration box this duration uh allows you to specify the number of depreciation needed to depreciate your asset and you can set no prata constant period and based on days per period as the computation techniques you may also see your company name in the appropriate field then here we can mention the no uh not depreciation value in person here we can mention the accounting details like depreciation account expense account and journals here you can mention the fixed asset account that was utilized to record the asset purchased together with the asset initial purchase price the uh this depreciation account option allow you to enter the account that will be utilized to reduce the asset value during depreciation entries then the account used to in the period uh periodic entries can be added to the expense account field to record a portion of the asset as an expense then by specifying the journals for this asset model uh this asset models accounting entries the settings can be finished here I'm creating a new asset model named as devices then I'm choosing uh the method as straight line and duration is 5 years and the competition method is com uh constant period uh I add the depreciation account as fixed asset and choosing a expense account here let's save the settings and let's move to uh create a new asset then let's create a new asset for this asset model for that we need to choose the accounting menu under that here we can see the asset option I'm choosing the asset and uh here we can see the asset name acquisition datat original Value method Book value depre uh depreciable value status Etc uh we can create a new asset by clicking on this new button here I'm adding the name as laptop and here we can choose the uh sorry the asset model uh if I'm choosing the asset model here we can see the accounting details are already filled and the depreciation method we choose it uh we choosed there as straight line with computation as constant perod duration 5 years Etc then here we can see the acquisition date original value I'm adding the original value as uh th000 and adding the acquisation date as December 1st then if I'm adding the non depreciable value here as 100 then the book value also changed currently I'm not adding any value after adding the details here we can choose the confirm button to confirm this asset or we can use this compute depreciation button to compute the uh depreciation board I'm Computing the depreciation then a depreciation board is added here while checking on this here we can see the depreciation uh board shows the depreciation values let's check each one for that I'm choosing a calculator then here we can see the first month uh sorry the first year is 2024 uh here we can see the depreciation value is 16.67 which means um uh here the value is 1,000 and I'm choosing the straight line method uh sorry the straight line method for 5 years that's why we need to divide the value uh with the time frame which means uh $200 added as a depreciation value in each year but this current year we are only uh or we we choose the acquisition date as December 1st which which means only one month is added here uh so we need to uh check the depreciation value for a month so we can uh we can see the depreciation value for a month is 16.66% [Music] depreciable value here then the next month or from the next month as per the straight line method $200 is added as depreciation value uh and the last month uh the depreciable value is only $83.33 so uh it's less than the 200 so that value is added here this is how the asset calculation happen uh if I'm choosing or if I'm changing uh the method as declining and I'm choosing the computation as no PR then here after Computing the depreciation here we can see uh the depreciable value is shown here as 300 which means uh this time we choose the declining method so we need to uh multiply the uh declining factor with our value that's why we get that uh this 300 then, th - 300 is shown as depreciable value then we need to uh for the next year we need to uh check or we need to uh multiply with the uh depreciable value or we need to multiply both the depreciable value and the declining Factor together then we get this value this is how the asset calculation will happen uh we can confirm the asset then here we can see it running stage if we want to modify the depreciation we can click this modify button and it's possible to dispose sell or revaluate or post this asset then we can save this as a model by clicking on this particular button then if you want to cancel the asset we can flick this uh cancel button we uh here we can see a posted entries uh we can uh see all the posted entries while checking on this particular uh smart this is how aset management happens in ODU 18 accounting module so let's check the budget option Odo 18 introduced two type of budget first one is analytic budget and second one is financial budget so let's check the analytic budget first before that we need to enable the budget management option from settings so I'm moving to settings and while scroll down here under the analytic section we have an option to budget management we need to an uh sorry we need to uh enable the budget management and analytic account features together then after saving we can see analytic budget option under the uh accounting here we can see the budget name State responsible person activity status Etc we can create a new one by clicking on this new button so the analytic budget in ODU 18 allows the business to plan Monitor and control financial performance by setting budget for specific analytic accounts and comparing them against actual revenue and expense we can add the budget name here I'm adding uh Greenhouse plan 2024 as the budget name and here we can mention the responsible person and we can choose this budget type either as expense or Revenue uh or we can choose both options so here I'm choosing this as expense and we need to specify the period here I'm specifying uh the budget period from December 1st to January 31st after that under budget lines we can specify the analytic account here uh here or I'm adding under this uh analytic plan this is for uh an Greenhouse 202 4 and here we can mention the budgeted amount here I'm choosing or I'm adding the budgeted amount as 2,000 then after adding such details here we can see the budget is in draft stage and we can open the budget by clicking this open button here we can see the budgeted amount committed amount and the achieved amount theoretical value committed percentage and achieved percentage theoretical percentage and uh such details here here we can see the committed amount and achieved amount committed amount is uh shown here and here the theoretical amount is nothing the amount supposed to be built or invoiced till this date is shown here as theoretical amount so this is an expense so here we can see or we can say that the amount supposed to be built till this date is shown here uh this is uh for that I'm choosing the calculator and here we can see the planned amount is 2,000 and we need to divide it by uh the total days which means 31 days in December and 31 days in January here we can see the amount supposed to be built per day is 32.25 and till this date means uh for 13 days here we can see it is uh shown as the theoretical amount then the committed amount and achieved amount achieved amount means the total build amount is shown here uh and here we can see 55 percentage is achieved and here we can see the theoretical percentage is 20.9 then let's create a new vendor Bill Let's create a new bill uh I'm choosing the customer as James I'm adding a product as greenhouse and I'm choosing here the greenhouse plan 2024 with the one quantity and price as 200 without any tax then let me confirm the value sorry we need to specify the bill date I'm choosing the bill bill date as today and after that confirm and let's pay the bill after that going back to the budget and um choosing Greenhouse plan 2024 here we can see the committed amount and achieved amount is increased which means uh with that the committed percentage achieved percentage is also increased which means the um we created a bill again so the committed amount and achieved amount is increased uh if I'm choosing a purchase order uh for the vendor or the same vendor and I'm adding a new product as green uh green hood and I'm choosing my uh Greenhouse plan again and with an an amount of $10 uh then after confirming here we can see we the then the product is received and I'm going back to accounting while checking the analytic budget here we can see the committed amount is increased with $10 which means the achieved amount is not changed but the committed amount is increased with $10 we created a purchase order for $10 uh so moving back to purchase and I'm creating a bill uh specifying the bill date here as today after confirming the am let me pay the bill and moving back to accounting then checking the analytic budget again while opening the greenhouse plan here we can see the achieved amount Al is also increased uh we have options to reset to draft and we can revise the bill uh sorry the we can revise the budget if I'm revising this here we can see uh the uh a revision of greenhouse plan 2024 which means a re revised version is shown here uh after opening this we can continue uh it's possible to edit the revised version and after opening we can continue this uh plan or we can continue the uh budget again this is how the analytic budget handled in U 80 then let's check how uh the financial budget is happening for that I'm moving to the configuration and choosing the financial budget option from here here we can see uh under accounting uh here we have the financial budget option here we can see the previously created one and we can create a new budget by clicking on this new button the financial budget in Odo 18 helps the business to allocate and track overall companywide budget enabling the comparison between planned and actual financial performance across the accounts here I'm adding uh the name as budget 2024 and from here we can choose the accounts currently I'm choosing the previously created export sales account and I'm choosing the month as December we can uh set an amount here I'm adding an amount as uh $1,000 after saving the settings here uh in the inside the reporting here we have a profit and loss report inside this report from here we have a new filter which is named as budget from here we can choose uh the budget yes here we uh we can choose the budget budget 2024 and here we can see uh the amount or uh the target amount which we added and here we can see the actual amount so we have a comparison uh or it's possible to compare the uh targeted value and the achieved value from here this is uh the use of financial budget in ODU 80 then let's check the Deford expenses expenses that have been inquired but uh are not yet payable are known as defer expenses in other words these are cost that have already be paid but won be reimbursed until later deferred expenses are crucial because they give firms a mechanism to account for cost associated with asset that will be used off an ex or used off an extended period of time so let's check how handle the Deford expenses in ODU 18 for that I'm moving to the settings and here we have a session named default accounts yes here we can see the Deferred entries or the Deferred expense entries here the journal choose is miscellaneous journal and here we can see the Deferred expense account which is a prepaid account uh the account type is current asset which is uh here uh as I said before it is a prepaid expense which means uh this expense is actually a nzed for the company so here we can we have two options to generate entries we can uh generate uh or we can generate the defered expense entries on Bill validation or manually and grouped here I'm choosing uh the on Bill validation and here we can see uh we can calculate uh the amount based on days months Etc here the choosen method is four months for checking the Deferred uh entries we can create a venables so the Deferred expenses are used in Odo 18 accounting to manage the prepaid expenses these are ined to specify the uh framework for the systems handling for postponed expenses this can be used for an instance to specify account posting guideline and the timing of when a course should be recognized it can also be applied to create a duer expense account deferred expenses are tracked in this account which is updated as CED are reimposed or recognized so let's create a new ventor bill I'm creating a new ventor bill for the uh vendor AKA Foster and I'm choosing the bill date as current date then let's add a new product I'm choosing the product as warranty and from here we need to mention the start date I'm choosing the start date as December 1st and uh I'm adding uh the end date as a April 30th which means uh after 5 months and here we can see the quantity and I'm changing the price from 200 to 500 so the bill is uh created let's confirm the bill after confirming the bill here we uh we have a new Smart Tab n duer entries so we can view all the created defer entries from this particular Smart Tab here we can see all the Deferred entries are shown here and here while we checking the first entry here we can see the expense account and prepaid expenses are affected so uh so here the expense is uh decreases so that's why the credit is happened here and inside the prepaid expenses as I said before which is a current asset account here the asset is in increases so we can see a debit is shown here while checking uh the draft entry for the Deferred expense uh in this uh in this particular month here we can see the expense account is debited so the expenses increases here so the uh amount is uh shown as debited which means uh we add the total amount as 500 and we choose uh the month from December to April which means 5 months so the total expense is not for this current month which is uh affected on the five months or which is for the five months uh that's why the whole amount is divided by the time frame so we get uh the amount $100 here here uh the expense is increases so we can see that uh account is debited and the prepaid expense which means the asset is decreases here so here we can see the credit is happened uh so while checking the entry here we can see the entry is not posted yet so from the other info we can uh disable this Auto post and we can manually post the entry then we have a reporting session two for this deferred expenses Under reporting sorry this Under reporting here we have a management report and we get the uh expense defer expense report from here from here we we can see all uh the total amount and here we can see the defered expense entry uh 100 is shown here in the December while checking uh the other months here we can see the aord entries are shown here this is how the defer expenses handle in um ODU 18 so the expenses uh the defer expenses uh for the company which is a prepaid expense so this Deford expenses is consider as a uh asset for the company so let's check what about the Deford Revenue as a uh which is similar as dufford expense the dufford revenue feature is especially helpful for business that provide subscription services or have recurring Revenue model because it make it possible for companies to monitor client payments made in advance for goods or services that have not yet been received so for that I'm moving to configuration settings again then under the default account yes we have a deferred entries uh or deferred revenue entries also uh as similar as expenses uh the Deford uh or the journal is a miscellaneous journal and here we can see the Deford revenue account while checking the account type here we can see the Deford revenue account as a current liability so which means uh the uh dord revenue is not an income which is uh considered as a liability for the company then here we can see uh similar as Deford expense we have two methods on Bill validation or manually and grou for this I'm choosing manually and group and here we can see uh we can calculate the amount based on days months or full month I'm choosing uh the same months here then let's save the settings after that or for instance a business might provide a subscription Based Services and charge the client before providing the service or uh or the S or the item so the prepayment or the payment will be represented on the uh balance sheet as defered Revenue indicating that the revenue has not yet be generated when a service is uh or when the service is rented the Deferred money will subsequently be recognized as a actual Revenue so for that let's check our let's create a customer invoice for that I'm moving to the customer and choosing the invoice option let's create a new one for the Deford Revenue uh for this time I'm choosing uh decoit as the customer and here I'm choosing uh the current date as invoice date let's add a new product uh which is a subscription it's also a service product and we can mention the start date I'm choosing the started from December uh to March 31st so here we can see the total price is uh shown as th000 without any tax uh and let's confirm the invoice but uh there is no journal entry is created here just because we set uh it as manually and group uh to check the journal entries let's check the reporting and under the uh management report we get the Deford X sorry the Deford Revenue here uh let's filter from December here we can see uh the account or uh here we can see the amount is affected here and here we can see the uh deferred revenue amounts 250 is shown in December and here we can see the the remaining 750 is for uh the other months uh let's if you want to generate a entry we can generate it manually from here we have a generate entry option from here here we can see uh the the entry is uh created and while checking the entry here we can see this is the Deferred entry uh for the month here we can see the accounting date is uh 31st from the other info we want to change the autop poost option and we can post the journal entry from here while checking the journal item here we can see the product sales uh account uh which is uh which is an income account here we can see the whole amount is shown here and uh here the duer expense sorry the duer revenue is uh 250 per month so here we can see uh the income account this creditor which means the income is increases here so the 250 is uh shown here as credit so the uh the Deford revenue is a liability and here we can see uh the liability also and here we uh we have a uh journal entry here which is the reversal of this particular uh this this particular journal entry here we can see the product sales is uh shown as credit and both the product sales and duer revenue is shown as du or debit here and if we generate a uh General entry for the next month January then let's generate an entry here we can see uh as I said before so previously uh inside this reversal entry uh the product sales account is uh credited with th000 so uh here we generate an entry uh for the product sales uh inside the debit so both the entries are cancelled then uh from here we can see uh the 250 is credited and uh inside the Deford Revenue 250 is also credited and here also we generate a reversal entry to cancel uh the entries this is how the Deferred entries handled in or the defer Revenue entries handled in U 18 so this as I said before the Deferred entry is uh not a revenue or not an income which is considered as a liability to the company then uh let's go to the next session under the settings um here we have a newly introduced or new options here like WIP account properties let's check uh about this account properties so this is work in progress accounts which means in Odo 18 the working progress accounts help the business to track the value of partially completed goods due in production so this allows for more accurate cost management and financial reporting and helps to ensure the comp uh complaints about uh with the accounting standards enabling the accurate tracking of material and labor cost on balance sheet these are available inside the settings under the stock valuation session as uh shown in the screen and which is newly introduced in ODU 18 so let's check about this work in progress account for that I'm moving to the manufacturing module and under this operation here we get the manufacturing orders so let's choose uh one particular order which is uh which is in state in progress here we can see there is an order which is in in progress and while open this here we can see the components uh are shown here with quantities and under the work order here the work order is in in progress and and currently uh the duration is uh shown here and it's possible to edit the duration for uh for an example and adding the duration as 16 minutes so so uh from here we can create a stock valuation uh Jour and pull that inside the action button we have an option to post WIP accounting entries while clicking on this here we get the information uh from here we get the journal entry uh here we can see the stock quation account uh inside the stock quation account the component value is added here uh and an amount is shown here so while checking uh this is the total uh cost of the components here we use several components and here we can see the total cost cost of confence uh is credited inside the stock valuation account here we can see the cost of production which is shown here uh the cost of production is the um total cost of uh the work center and plus the employe cost which is added as uh cost of production uh and here we can see uh the total uh amount is uh shown in work in progress we can post uh the work in progress account from here and here also it's possible to add the work in progress Rec or this working progress um accounts for all the manufacturing orders from here in this uh one click here we we get the post WIP accounting entries and here we can see hold the values and it's possible to add the post wi then while checking the accounting module again we can see under the journal and entries here we can see uh yes here we can see uh the posted entries are shown here this is the uh entry which we uh posted as uh our work in progress account so this is a new feature updated in ODU 18 so let's move to the last session which is reporting Under reporting we have several options like statement report audit report partner reports management report reps Etc so any type of business needs report to understand how the operations are progressing and to analyze the workflow a clearly defined reporting platform will streamline the analysis process and assist you in making decisions Under Pressure fill circumstances so let's move to the reporting here we can see under statement report the first report is balance sheet the balance sheet report gives uh the user access to information about an organization's asset liability and Equity at one time by utilizing the additional functionalities provided by ODU 18 you may produce customized reports by choosing the date on the small calendar icon shown in the screen so it's able to obtain the balance sheet for the specific date the comparison tool here we can see the comparison tool can be used to compare the reports to prior to the uh time frame you can choose a specific journal from the journal option if you want to balance uh want the balance sheet report for that specific Journal you will also have access to some sophisticated filters that will allows you to order the accessible uh accessible data in ance with your needs here we can see uh the height lines at zero it's a new filter and the specific filter can be used to hide the lines in report that has value of zero and here if we want to split it horizontally we can use this split horizontally here we can see the current assets liability and Equity values then I think let's move to the next reporting it's profit and loss report I think the profit and loss report is quite similar the most crucial aspect of financial reporting is the report for income statements you may find the organization's Revenue cost profit and loss for the specific time period in the profit and loss reporting platform unlike the balance sheet the ending balance of the profit and loss report for the choosen time period will will not be carried over the FL uh following accounting years here also we have the calendar icon comparisons journals poster entries or filters options uh from here we can view the budget also then the next statement report is cash flow statement the financial statement for all cash inflows and outflows will be provided by the cash flow statement reporting the accounts you set up for the cash flow statement invoices will be uh the basis of this reports you will receive reports on the cash flow statement based on the operating investment and financial operations here we can see uh the cash flow statement and the next one is executed summary the cash flow uh profitability and the balance sheet reports for the specific period are summarized on this executive summary platform which is accessible from the reporting menu the performance stab also provide the information on return on investment gross profit margin and the net profit margin you may view the average debitor day average creditors day shortterm cash for uh forecast and current asset to liability under the position T and the next report is tax return so the tax report platform which is accessible by the reporting menu May produce th of reports on sales and purchase taxes you can submit the return tax for the chosen period by using this closing entry currently uh I'm choosing uh the tax period as October then here we can see some taxes and I'm clicking on this closing entry here we can see uh the tax closing entry or tax return uh as given as uh reference and here we can see the accounting date as uh the last date of October month and the journalism miscellaneous journal and here we can see the accounts tax received and tax payable are shown here uh we can post this entry by clicking on this post button now the tax return entry is posted um then one of the interesting fact is that after closing the entry here under this accounting we have an option like uh lock dates while clicking on this lock dates here we can see the lock tax return date is already uh already updated here and this lock tax return date which prevent the tax return modification up to the defined date inclusive uh of all taxes or journal entries involving taxes the tax return lock date is automatically set when the corresponding journal entry is posted then here we have other lock dats like lock sales lock purchases uh lock everyone and hard look here we can see uh the l