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[IMP] accounting: update cheat sheet

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This PR change the cheat sheet of the accounting documentation.
Change done:
* Change name of the file: memento to cheat_sheet
* Adding explanation to the doc (Ex: Invoices and bills status)
* Correcting some sentences

closes odoo/documentation#3623

Task-id: 2847663
X-original-commit: 2fa9de17e1
Signed-off-by: Castillo Jonathan (jcs) <jcs@odoo.com>
This commit is contained in:
Donatienne Pirlot
2022-12-22 10:46:58 +00:00
committed by Jonathan Castillo (jcs)
parent d04a61fc40
commit 8d6e656701
13 changed files with 268 additions and 262 deletions
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content/applications/finance/accounting/getting_started/cheat_sheet.rst
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:code-column:
:custom-css: accounting.css
:custom-js: accounts.js,chart-of-accounts.js,entries.js,misc.js,reconciliation.js
======================
Accounting cheat sheet
======================
.. h:div:: intro-list
.. rst-class:: intro-balance
The **Balance Sheet** is a snapshot of the company's finances at a specific date (as opposed to
the Profit and Loss, which is an analysis over a period).
* .. rst-class:: intro-assets
**Assets** represent the company's wealth and the goods it owns. Fixed assets include buildings
and offices, while current assets include bank accounts and cash. The money owed by a client is
an asset. An employee is not an asset.
* .. rst-class:: intro-liabilities
**Liabilities** are obligations from past events that the company will have to pay in the
future (utility bills, debts, unpaid suppliers). Liabilities could also be defined as a source
of financing which is provided to the company, also called *leverage*.
* .. rst-class:: intro-equity
**Equity** is the amount of the funds contributed by the owners of the company (founders or
shareholders) plus previously retained earnings (or losses). Each year, net profits (or losses)
may be reported as retained earnings or distributed to the shareholders (as a dividend).
What is owned (an asset) has been financed through debts to reimburse (liabilities) or equity
(profits, capital).
A difference is made between **assets** and **expenses**:
- An **asset** is a resource with economic value that an individual, corporation, or country owns
or controls with the expectation that it will provide a future benefit. Assets are reported on
a company's balance sheet. They are bought or created to increase a firm's value or benefit its
operations.
- An **expense** is the costs of operations a company bears to generate revenues.
.. h:div:: intro-list
.. rst-class:: intro-p-l
The **profit and loss** (P&L) report shows the company's performance over a specific period of
time, usually a quarter or a fiscal year.
* .. rst-class:: intro-gross-profit
The **revenue** refers to the money earned by the company by selling goods and/or services.
* .. rst-class:: intro-gross-profit
The **cost of goods sold** (COGS, or also known as "Cost of Sale") refers to the sale of
goods' costs (e.g., the cost of the materials and labor used to create the goods).
* .. rst-class:: intro-gross-profit
The **Gross profit** equals the revenues from sales minus the cost of goods sold.
* .. rst-class:: intro-opex
**Operating expenses** (OPEX) include administration, sales and R&D salaries, rent and
utilities, miscellaneous costs, insurances, and anything beyond the costs of products sold
or the cost of sale.
.. h:div:: doc-aside accounts-table
.. placeholder
.. rst-class:: doc-aside
.. highlights:: Assets = Liabilities + Equity
Chart of accounts
=================
The **chart of accounts** lists all the company's accounts: both Balance sheet accounts and P&L
accounts. Every transaction is recorded by debiting and crediting multiple accounts in a journal
entry. In a way, a chart of accounts is like a company's DNA!
Every account listed in the chart of accounts belongs to a specific category. In Odoo, each account
has a unique code and belongs to one of these categories:
- **Equity and subordinated debts**
- **Equity** is the amount of money invested by a company's shareholders to finance the
company's activities.
- **Subordinated debts** are the amount of money lent by a third party to a company to finance
its activities. In the event of the dissolution of a company, these third parties are
reimbursed before the shareholders.
- **Fixed assets** are tangible (i.e., physical) items or properties that a company purchases and
uses to produce its goods and services. Fixed assets are long-term assets. This means the assets
have a useful life of more than one year. They also include properties, plants, and equipments
(also known as "PP&E") and are recorded on the balance sheet with that classification.
- **Current assets and liabilities**
- The **current assets** account is a balance sheet line item listed under the Assets section,
which accounts for all company-owned assets that can be converted to cash within one year.
Current assets include cash, cash equivalents, accounts receivable, stock inventory,
marketable securities, prepaid liabilities, and other liquid assets.
- **Current liabilities** are a company's short-term financial obligations due within one year.
An example of a current liability is money owed to suppliers in the form of accounts payable.
- **Bank and cash accounts**
- A **bank account** is a financial account maintained by a bank or other financial institution
in which the financial transactions between the bank and a customer are recorded.
- A **cash account**, or cash book, may refer to a ledger in which all cash transactions are
recorded. The cash account includes both the cash receipts and the cash payment journals.
- **Expenses and income**
- An **expense** is the costs of operations a company bears to generate revenues. It is simply
defined as the cost one is required to spend on obtaining something. Common expenses include
supplier payments, employee wages, factory leases, and equipment depreciation.
- The term "**income**" generally refers to the amount of money, property, and other transfers
of value received over a set period of time in exchange for services or products.
Example
-------
.. h:div:: example
\*: Customer Refund and Customer Payment boxes cannot be simultaneously selected as they are contradictory.
.. h:div:: doc-aside
.. highlights:: Balance = Debit - Credit
.. h:div:: chart-of-accounts
.. placeholder
Journal entries
===============
Every financial document of the company (e.g., an invoice, a bank statement, a pay slip, a capital
increase contract) is recorded as a journal entry, impacting several accounts.
For a journal entry to be balanced, the sum of all its debits must be equal to the sum of all its
credits.
.. h:div:: doc-aside journal-entries
examples of accounting entries for various transactions. (see entries.js)
.. _accounting/reconciliation:
Reconciliation
==============
:doc:`Reconciliation <../../accounting/bank/reconciliation/use_cases>` is the process of linking
journal items of a specific account and matching credits and debits.
Its primary purpose is to link payments to their related invoices to mark them as paid. This is done
by doing a reconciliation on the accounts receivable account and/or the accounts payable account.
Reconciliation is performed automatically by the system when:
- the payment is registered directly on the invoice
- the links between the payments and the invoices are detected at the bank matching process
.. h:div:: doc-aside reconciliation-example
.. rubric:: Customer Statement Example
.. rst-class:: table-sm d-c-table
+-------------------------+-------------------------+-----------------------+
|Accounts Receivable |Debit |Credit |
+=========================+=========================+=======================+
|Invoice 1 |100 | |
+-------------------------+-------------------------+-----------------------+
|Partial payment 1/2 | |70 |
+-------------------------+-------------------------+-----------------------+
|Invoice 2 |65 | |
+-------------------------+-------------------------+-----------------------+
|Partial payment 2/2 | |30 |
+-------------------------+-------------------------+-----------------------+
|Payment 2 | |65 |
+-------------------------+-------------------------+-----------------------+
|Invoice 3 |50 | |
+-------------------------+-------------------------+-----------------------+
| | | |
+-------------------------+-------------------------+-----------------------+
|Total to pay |50 | |
+-------------------------+-------------------------+-----------------------+
Bank Reconciliation
===================
Bank reconciliation is the matching of bank statement lines (provided by your bank) with
transactions recorded internally (payments to suppliers or from customers). For each line in a bank
statement, it can be:
- **matched with a previously recorded payment**: a payment is registered when a check is received
from a customer, then matched when checking the bank statement.
- **recorded as a new payment**: the payment's journal entry is created and reconciled with the
related invoice when processing the bank statement.
- **recorded as another transaction**: bank transfer, direct charge, etc.
Odoo should automatically reconcile most transactions; only a few should need manual review. When
the bank reconciliation process is finished, the balance on the bank account in Odoo should match
the bank statement's balance.
.. rst-class:: checks-handling
Checks Handling
===============
There are two approaches to managing checks and internal wire transfers:
- Two journal entries and a reconciliation
- One journal entry and a bank reconciliation
.. h:div:: doc-aside
The first journal entry is created by registering the payment on the
invoice. The second one is created when registering the bank statement.
.. rst-class:: table-sm d-c-table
+-------------------------+--------------+------------+---------------+
|Account |Debit |Credit |Reconciliation |
+=========================+==============+============+===============+
|Account Receivable | |100 |Invoice ABC |
+-------------------------+--------------+------------+---------------+
|Undeposited funds |100 | |Check 0123 |
+-------------------------+--------------+------------+---------------+
.. rst-class:: table-sm d-c-table
+-------------------------+--------------+------------+---------------+
|Account |Debit |Credit |Reconciliation |
+=========================+==============+============+===============+
|Undeposited funds | |100 |Check 0123 |
+-------------------------+--------------+------------+---------------+
|Bank |100 | | |
+-------------------------+--------------+------------+---------------+
.. h:div:: doc-aside
A journal entry is created by registering the payment on the invoice. When
reconciling the bank statement, the statement line is linked to the
existing journal entry.
.. rst-class:: table-sm d-c-table
+-------------------------+--------------+------------+---------------+---------------+
|Account |Debit |Credit |Reconciliation |Bank Statement |
+=========================+==============+============+===============+===============+
|Account Receivable | |100 |Invoice ABC | |
+-------------------------+--------------+------------+---------------+---------------+
|Bank |100 | | |Statement XYZ |
+-------------------------+--------------+------------+---------------+---------------+