Analytic Accounting In Odoo

Analytical accounting makes it easier to keep track of expenses and income as well as to evaluate a project's or service's profitability. The analytic widget lets you distribute costs across one or more analytic accounts while making journal entries.

Configuration of Analytic Accounting in Odoo:

Go to accounting application > configuration > settings > enable analytic accounting.

Analytic Plans:

The analytic plans allow you to analyze your accounting. For example, to track costs and revenues by project or department.

You can access the analytic plans by going to Accounting ‣ Configuration ‣ Analytic Accounting: Analytic Plans.  Click New to create a new plan.

You can access the analytic plans by going to Accounting ‣ Configuration ‣ Analytic Accounting: Analytic Plans. Click New to create a new plan.

Brief Description:

• Parent: link your plan to another Analytic Plan to build a hierarchy between your plans;
• Default Applicability: decide how your plan behaves in the widget when creating a new journal entry:
• Optional: if selected, it is not mandatory to add the analytic plan in the widget;
• Mandatory: if selected, an orange bullet is visible in the widget next to the plan until the analytic distribution is done (the bullet then turns to green); it is not possible to confirm the entry if no analytic account is selected;
• Unavailable: if selected, the plan is not available in the widget.
• Color: select the color of the tag related to this specific plan
• Company: add the company to which the plan applies;
  

Here, mention a name for the plan, you can set the Parent plan and Default Applicability of the plan in the respective fields. The name of your company will be auto-populated in the corresponding field. 

Under the Applicability tab, you can define the applicability of this plan using the Add a Line button. The Domain can be set as Invoice, Expense, Vendor Bill, Sales Order, Purchase, or Miscellaneous.

The prefix mentioned in the Financial Accounts Prefix defines which accounts from the financial accounting this applicability should apply on. Similarly, mention the Product Categories also to apply this analytic plan. You can set the Applicability as Mandatory, Optional, or Unavailable.

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Analytic Accounts:

Enter the account name in the Analytic Account area. You can enter the customer's ID in the Customer section if this account pertains to a specific customer. Mention the Reference, Company, and Currency in the corresponding field that were utilized to record the analytic entries. You may choose an appropriate analytic plan for this account by using the Plan field. 

In the budget items you may define related budget items related start to end date , planned amount, so when you have bills and invoices related to this analytical account you may check the actual budget and gross margin.

Also​ Read:​Manage Accounting With Odoo

Brief Description:

• Analytic Account: add the name of your analytic account;
• Customer: select the customer related to your project;
• Reference: add a reference to make it easier to find the account when you are on your bill;
• Plan: add an analytic plan
• Company: if you are managing multiple companies, select the company for which the analytic account will be used
• Currency: select the currency of the analytic account;

Analytical Distribution Model:

The analytical distribution models automatically use a particular distribution depending on predetermined criteria.

To establish a new analytic distribution model, select Accounting Configuration. Click New on the Analytic Distribution Models page, then specify the requirements your model must match in order to be applied automatically:

Here, you may define particular partner, partner category, account prefix, product, product category and analytic accounts into the analytic distribution model.

Brief Description:

• Accounts Prefix: this analytic distribution will apply to all financial accounts sharing the prefix specified;
• Partner: select a partner for which the analytic distribution will be used;
• Partner Category: this field is not visible by default: add it by clicking on the columns selection button, and tick the Partner Category box. Add the partner category for which the analytic distribution will be used;
• Product: select a product for which the analytic distribution will be used;
• Product Category: this field is not visible by default: add it by clicking on the columns selection button, and tick the Product Category box. Select a product category for which the analytic distribution will be used;
• Analytic: add the analytic accounts and their distribution;
• Company: select a company for which the analytic distribution will be used;

• Analytic Distribution: if the above conditions are met, the Analytic plan defined in this field as well as the distribution to be applied between the different analytic accounts is selected automatically on the entry.

Test-case - How Analytic Account can be used in Odoo:

Use-case of analytical account:

G.G.inc is a company that provides a variety of services such as repair services, maintenance services etc., basically they have two types of customers B2B and B2C.

They have multiple projects based on these customers such as repair and maintenance , installation etc. Let us see how we can manage it using analytical accounts and analyze the financial reporting.

First , we need to create analytical plans based on our customer or business type and project. Projects includes the sub-plans of services that we render such as maintenance , repair and installation by going into accounting > configuration > analytical plans.

After that we need to create an analytical distribution model for 2 business type as for the b2b customers and b2c customers, by going into accounting > configuration > analytical distribution model , in that we have to define partner category for b2b and analytic to apply is also b2b and create same distribution for b2c business type.

Now, in the customers form you can define the tags as b2b and b2c customers and when you create a sale order, invoice, vendor bill, purchase order ,miscellaneous and defined applicability of analytical plans will be applied and in that we need to define analytic  accounts and plans so we can have bifurcation based on plans and accounts.

In the sale orders itself we can create analytical accounts for particular projects such as repair and all we need to create it and in that define that repair subplan that we have created in analytical accounts and proceed the sales.

We can have a bifurcation based on analytical accounts and plans in all the financial reports. So in that we can have a broad view of income and expenses and we can filter it by b2b and b2c in the analytical group by.

In particular analytical accounts also we can view the gross margin as well.

And we can have a balance based on particular projects and accounts by going into accounting application > accounting > analytic items.

Test-case 2:

This tutorial includes the case as we have two types of customers b2b and b2c. To have the bifurcation of expenses and income based on b2b and b2c customers how we can create analytical plans ,analytical accounts and analytical distribution model for that.