Analytic Account In Oddo

Why we are using Analytic Account concept in Odoo

Suppose consider a small company doing trading business.
They want to know how much expense for vehicle maintanance.
For a smaller company they only want the total expense for all vehicles.
So they will create vehicle_maintanance_acc and put all expense in this account.



Consider a big company who having lot of vehicles.
They want to know the expense for maintenance for each vehicle.
So we can create n number of vehicle expense account,but its vertical in nature.
Maintaining it will be difficult.



So the better method is analytic account for each vehicle,we can maintain it in horizontally.
So Odoo defaultly using this method.

Journal Entry Effect in Odoo during various transactions

1)At the time of a sale:

  customer->account recievable->Debit
  product ->category->income account ->credit

2)At the time of a purchase:

  supplier ->account payable->credit
  product ->stock input account -> debit

3)Salary Expense

  employee ->partner->account payable ->credit
  salary expense account->debit

Basic Accounting Terms

Generally accepted accounting principle

ICWAI:-Institute of cost and work Accountants of india.
ICAI:-Institute of Chartered Accountants of india
AICPA:-American institute of certified public Accountants

Basic accounting terms

1)Capital

   It is the amount which the proprietor has invested in the firm.

2)Long Term Liabilities

  These are those liabilities which are payable after a long term.

  Ex:Loans,debentures

3)Current Liabilities

  liabilities which are payable in near future.

  Ex:-creditors,bill payable

4)Fixed Assets

  Assets purchased for operating the business

  Ex:furniture,building.

5)Current Assets

  Those assets which are kept for short term for converting into cash.

  Ex:debtors,bank balance

5)Income

 It is the profit earned during the period of time.

 In other words the difference between revenue and expense is called income.

6)Expense

 It is the amount spent in order to produce and sell the goods and services which produce the  revenue.(it is the cost of the use of things or the services which produce the revenue).

 Ex:payment of salary,wages,rent 

7)Debtors

 A debtor is a person or entity that owes money. In other words, the debtor has a debt or legal  obligation to pay an amount to another person or entity. For example, if you borrow $10,000  from a bank, you are the debtor and the bank is the creditor.

                  or

 A person who owes money to the firm.

 Ex:we are selling our products to customer(credit sale)

 debtors:customer

 creditors:our own company

8)Creditor


 A person to whom the firm owes money is called a Creditor.
 Ex:we are purchasing some goods from suppliers without cash(credit)
 hence
 creditor:supplier
 debitor:Our Own company

                                         or
 A creditor is a person, bank, or other enterprise that has lent money or extended credit to another  party. (The party to whom the credit has been granted is often a customer that will now be  referred to as a debtor.) If Company X borrowed money from its bank, Company X is the debtor  and the bank is the creditor.

9)Cost of goods sold

 It is the direct cost of the goods or services sold.

10)Net Profit

 It is the profit made after allowing for all expenses.In case expenses are more than revenue it is    net loss.

11)Gross Profit

 It is the difference between sales revenue or the proceeds of goods sold and services rendered  over its direct cost.

12)Drawings

 Amount of money or the value of goods which the proprietor takes for his domestic or personal  use.

13)Revenue

 It means the amount which,as a result of operations is added to the capital.
 Revenue is an inflow of assets,which results in an increase in owners equity.
 Eg:-sales of goods,rent income.


14)Receivable


 The amount that is receivable by the firm,other than the amount due from the debtors.

15)Payable

 The amount payable by the firm,other than amount due to creditors.

   Basic Rule

 1)Personal Account

     debit:receiver

     credit:giver

 2)Real Account

     debit:What comes in

     credit:What Goes out

 3)Nominal Account

     debit:Expenses & Loss

     credit:Income & Gain