How to Manage Deferred Expenses in Odoo 17 Accounting App
- 1. How to Manage Deferred Expenses in Odoo 17 Accounting Enterprise
- 2. Introduction Enterprise In this slide, we'll explore the deferred expenses feature in the Odoo 17 Accounting App. Deferred expenses, like prepaid expenses, are costs paid upfront for future benefits, such as paying rent in advance. We'll cover how to set up and manage these expenses effectively in Odoo.
- 3. Enterprise Step 1: Manage Deferred Expenses To manage with the deferred expenses we just need to set the default accounts to manage deferred entries so first go to the Accounting module and then to Configuration Settings. We → have to enable some certain features.
- 4. Enterprise Here, the default account for deferred expenses is set to Current Assets. We can create entries based on bill validation or manually, and group them. Computations can be based on days or equally per month. After setting the computation method, we can move on to vendors and create the bill.
- 5. Enterprise Step 2: Creating Deferred Entries Consider a customer renting a house for three months and making an advance payment. The service will be utilized over the next three months. Let's see how to manage this using the deferred expense feature in Odoo 17.
- 6. Enterprise In Odoo, we can create a bill for this. Mention the vendor as David Armstrong, set the bill and accounting date to June 1st, and add the rental product as a service. Specify the start date as June 1st and the end date as August 31st to cover the three- month duration and then we can confirm the bill.
- 7. Enterprise When the bill is confirmed, deferred entries are generated. Open the 'Deferred Entries' tab to view them. Here, we can see the deferred entries for this bill based on days.
- 8. Enterprise We can also find details about the deferred expenses in the Deferred Expenses report. Go to the 'Deferred Expenses' section under the 'Reporting' tab. Here, we can see the details of deferred expenses based on the computations set (e.g., based on days), showing the current month's expenses and pending future expenses.
- 9. For More Info. Check our company website for related blogs and Odoo book. Check our YouTube channel for functional and technical videos in Odoo. Enterprise www.cybrosys.com