Odoo Accounting configuration - a practical guide

Get your accounting data ready

Before you go into the configuration settings, take time to clarify a few core accounting basics. These inputs shape how you’ll structure your system, and getting them right early makes everything else easier.

• Your company’s chart of accounts (CoA), including account names, codes, types, and tax assignments
• A clear list of tax rates and tax reporting rules, ideally confirmed with your tax advisor
• Knowledge of your bank accounts, payment providers, and reconciliation workflows
• Understanding of local fiscal requirements, including any required reports, fiscal positions, or digitalisation options
• Clarity on whether you’ll use multi-company, multi-currency, or analytic accounting features

Install Odoo Accounting in 6 steps

Whether you're new to Odoo or setting up a fresh database, follow these six key steps to get your accounting foundation in place:

Step 1 – Choose your localisation package

Navigate to Settings > Fiscal Localisation, and select the correct package for your country. This will install standard accounts, taxes, and reports.

Step 2 – Import your chart of accounts

Go to Accounting > Configuration > Chart of Accounts, and import your CoA using a CSV or Excel file. Double-check account types, tags, and default taxes.

Step 3 – Set up taxes

In Configuration > Taxes, add or adjust your tax rules. Link them to the right accounts and assign them to appropriate tax groups for invoice printouts.

Step 4 – Create journals

Still under Accounting Configuration, define journals for:

• Sales
• Purchases
• Miscellaneous operations
• Each bank account (type: Bank)
• Cash operations (type: Cash)

Step 5 – Configure payment terms & methods

Set up standard payment terms (e.g. net 30, 3% in 10 days) and payment providers like SEPA, PayPal, or Stripe under Invoicing Configuration > Payment.

Step 6 – Set default values

In Settings, review:

• Default sales & purchase taxes
• Default terms and conditions
• Default incoterms
• Default accounts for gains/losses, deferrals, early payment discounts

Once you’ve gone through these, you're ready to fine-tune with reconciliation models, asset templates, and analytic dimensions based on your specific processes.

Important checks before go-live

Make sure that the following accounting processes are working correctly to ensure that your Odoo system is ready for go-live and aligned with your financial processes:

• Chart of Accounts: Import or configure your CoA with correct account types, codes, default tax accounts, and tags for BS/P&L.
• Taxes & Tax Groups: Ensure all relevant taxes are present and linked to the right accounts and reporting grids. Use tax groups to control how taxes appear on documents.
• Fiscal Positions: Configure automatic rules for applying the correct taxes/accounts depending on the customer’s location or status (e.g. EU B2B, non-EU B2C).
• Journals: Set up journals for all key operations (sales, purchases, cash, bank, inventory). Make sure each has the right default accounts and shortcodes.
• Payment Terms: Check discount conditions and term types for correct due date calculations.
• Bank Synchronisation: Link your bank accounts and test automatic statement imports. Reconciliation models should be reviewed and auto-validation rules checked.
• Currency Settings: If you operate in multiple currencies, activate required currencies and enable automatic rate imports.

Don’t forget to configure default taxes, rounding methods, and cash basis accounting if needed.

Set up daily accounting tasks

Once your system is configured, focus on your team’s day-to-day usability. These settings will help your team to work efficiently and keep your processes consistent from day one.

How to stay compliant and audit-ready

A well-configured system should help you stay compliant and ready for external audits without added effort. Here’s how to make sure your system is aligned:

• Activate the Audit Trail to keep a clear log of changes in journal entries
• Use account tags and horizontal report groups to match your reporting structure (BS, P&L, tax reports)
• Set the fiscal year end and define fiscal periods if your accounting year isn’t standard
• Configure the correct localisation for reports, especially for DATEV or tax-specific exports
• Review security settings and access rights, so only the right people can post, validate, or modify entries
• Automate VAT number validation and use the OSS system if selling across the EU B2C
• Use document digitisation to simplify processing and reduce manual entry risks