A business survives with the support of two major outside groups. They are customers and vendors. While the customers ensure the success of the business by purchasing the service or products offered by a company, vendors play a critical role in ensuring the efficient production of goods or supply of services by selling raw materials or products to the company.
In short, we can term a person or company that sells any goods or service to another person or company as a vendor.
Managing the vendors is important for all business operations. That means if you are running a manufacturing business you have to purchase raw materials, machines, etc. from a vendor for operating the business. In this case, you have to make payment to the vendor. There may be different methods to make payments to the vendor.
The first task is to create vendor bills based on the invoices created by the vendor. Then we have to make payment either as a single payment or as a batch payment.
Another task is to generate receipts for the payments. We will also have to go for refund options if the vendor fails to provide us with a product for which we have made payment in advance. Refund is important if the product is returned to the vendor due to damage or lack of market demand.
The vendor management system should be efficient as we have to manage all details of the vendor including account details to ensure proper transactions.
Odoo 14 Accounting module, being the most sophisticated accounting tool, has to manage many operations involving vendors. Accounting Officers will be responsible to take care of the vendor payments and enter the details in the journals. Besides, the accounts wing will have to enter the refunds and other details also in journals.
Major functionalities of the Vendor menu are
Bills
Refunds
Receipts
Payments
Batch Payments
Employee Expenses
Products
Wendors
Let us check each of the above-given functions and its operations
Bills
A vendor bill is an invoice itself. But here the invoice is issued by the vendor to the company based on the purchases made by us. That means, the amount in the bill will be the expense for the company unlike the invoice, where the invoice amount is revenue.
The vendor bills in Odoo accounting will have details of the vendor and bill reference number. IT is also possible to add the delivery address and payment reference. We can also add the details of the recipient bank, bill date accounting date, due date, and journal details. The currency can also be mentioned here.
Invoice Lines
The product details including label landed cost, account detail, quantity, price, and taxes can be mentioned here.
Below the Journal Items tab, we can add an account, label, analytical tag, and debit and credit details.
Once the form is filled it is possible to confirm the bill.
Refund
The refund feature in Odoo Accounting helps you to maintain the balance sheet in an accurate way. That means, Azure Interior is your vendor and you purchased a customizable desk from the company. But you had to return the desk to the vendor as the desk or the product you received was not in perfect condition. Then the vendor will have to refund you the amount. Odoo accounting will also assist you to record this in the balance sheet.
We can create a Refund using Odoo 14 Accounting. This form has fields like vendor details, delivery address, bill reference, recipient bank, bill date, accounting date, due date, journal details, and currency.
The form is the same as bills. Here also we have to add product details and the price details. The only difference is here we are mentioning the products returned to the seller.
Once the fields are filled we can confirm the bill and register payment.
Receipts
When it comes to receipts in the Vendor menu it is different from vendor bills. Or we can say the receipt here is the purchase receipt. While vendor bills are the request from the part of the vendor to make the payment. Receipts are confirmation of payments. These receipts can be used for the reconciliation of bank accounts.
Payment
Vendor payment is the payment of money to the vendor. From the accounting point of view, it is important as we have to enter it in journals and reflect it in accounts and bank statements.
Odoo accounting helps us to mention payment type, partner type, destination account, amount, and the date and memo number. We can also mention the journal, payment method, recipient bank account, and journal entry.
Batch Payment
We have already discussed batch payments in customer management. The batch type will be inbound if it is customer payment and outbound if it is vendor payment.
We can also provide bank details and select payment methods here. The date and reference can also be added.
Below the batch content tab we can add the product detail, vendor detail, and amount. We can add more than one line and this enables us to make payments in batches.
Once the process is complete, validate it and register payment.
Employee Expenses
Odoo accounting also offers support to record employee expenses. This can be used if the vendor payment is done by the employee and he has to be reimbursed the amount.
We can discuss this topic in detail in another blog.
Products
When it is purchased, we have to manage the list of products we want. It will help us to take a glance at the stock and the price. Product info can be added the way we create a normal product.
Vendor management
An important task for any company is to manage the vendors and the customers. The vendor list has to be maintained based on the quality and price of the products or raw materials sold by the vendors. We can also manage the details such as if the vendor is an individual or a company. The form offers columns to add company details, identification number, phone, website link, etc.
We can also add contacts and addresses, sale and purchase details, accounting details, and other information while creating a vendor.
We have discussed vendor management using Odoo Accounting in a nutshell. For detailed info mail at odoo@cybrosys.com or dial +918606827707