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account_banking_reconciliation
<h1 class="title">Bank Account Reconciliation</h1>
<p><a class="reference external" href="http://www.gnu.org/licenses/agpl-3.0-standalone.html"><img alt="License: AGPL-3" src="https://img.shields.io/badge/licence-AGPL--3-blue.png" /></a> <a class="reference external" href="https://github.com/OCA/account-reconcile/tree/13.0/account_banking_reconciliation"><img alt="OCA/account-reconcile" src="https://img.shields.io/badge/github-OCA%2Faccount--reconcile-lightgray.png?logo=github" /></a> <a class="reference external" href="https://translation.odoo-community.org/projects/account-reconcile-13-0/account-reconcile-13-0-account_banking_reconciliation"><img alt="Translate me on Weblate" src="https://img.shields.io/badge/weblate-Translate%20me-F47D42.png" /></a> <a class="reference external" href="https://runbot.odoo-community.org/runbot/98/13.0"><img alt="Try me on Runbot" src="https://img.shields.io/badge/runbot-Try%20me-875A7B.png" /></a></p>
<p>This module is designed to provide an easy method in which Odoo accounting users
can manually reconcile/validate their financial transactions from their financial
institution/transaction providers (e.g. Paypal, A financial institution, google
wallet, etc) against Odoo GL Chart of Account bank accounts.</p>
<p>Users will be able to validate and indicate if a transaction has "Cleared the
Bank" using a checkmark on a new Reconcile Financial Account Statement view on
each individual financial transaction. Users will also be able to mark
transactions on a bank account for future research.</p>
<p>The idea is that as a first step users will manually look at their paper statement
and line-by-line check off which financial transactions have cleared the bank in
Odoo using the new Bank Reconciliation Wizard. These changes will be displayed on
the new Reconcile Financial Account Statement tree view screen. This is the
process in which many companies reconcile (aka Audit) their bank account statements
and accounting system today and represents good segregation of duties.</p>
<p>Users can save their in-process reconciliations.</p>
<a name="background"></a>
<h2>Background</h2>
<p>Using the search view filters - users will also be able to effectively sort,
filter the transactions on a particular GL Financial Account. This new screen
will display the journal items associated with a particular bank account.
Several of the field labels have been relabeled to a more common vernacular.</p>
<p>The need for this module is driven by the following:</p>
<ul class="simple">
<li>Users want to easily record whether bank transactions sent to their bank have
"cleared the bank"- definition of "cleared the bank": presented to the bank for
payment and paid by the bank - added/subtracted funds on a bank account.</li>
<li>Users want the ability to validate if the bank processed the transactions them
correctly (e.g. properly encoded transaction - e.g. company sent a payment of
$20.20 to the bank. Was it processed for $20.20?). This can be considered
"Auditing the bank statement". We don't assume the bank correctly processed any
transaction.</li>
<li>Users want to understand what payments they've made are still outstanding and
have not been paid by the bank.</li>
<li>The financial auditing segregation standard of separating the duties of:
recording customer payments and making deposits; recording supplier payments
and writing checks; and monitoring bank account activity. This segregation of
duties is necessary to monitor and help prevent fraud.</li>
</ul>
<a name="assumptions"></a>
<h2>Assumptions</h2>
<ol class="arabic">
<li><p class="first">Companies using Odoo have setup a one-to-one relationship between their
bank accounts and their Odoo GL accounts. Each bank account should have a
corresponding GL account that is not shared with another account.
Example:</p>
<table class="docutils">
<colgroup>
<col width="27%" />
<col width="73%" />
</colgroup>
<thead valign="bottom">
<tr><th class="head"><p class="first last">Odoo GL Account #</p>
</th>
<th class="head"><p class="first last">Corresponding Bank Account</p>
</th>
</tr>
</thead>
<tbody valign="top">
<tr><td><p class="first last">10100</p>
</td>
<td><p class="first last">Bank (AR) Account Checking 5434 (held at Institution A)</p>
</td>
</tr>
<tr><td><p class="first last">10200</p>
</td>
<td><p class="first last">Master Bank Account 2343 (held at Institution A)</p>
</td>
</tr>
<tr><td><p class="first last">10300</p>
</td>
<td><p class="first last">Bank Payable Account Checking 5678 (held at Institution A)</p>
</td>
</tr>
<tr><td><p class="first last">10400</p>
</td>
<td><p class="first last">Bank Payroll Account 6656 (held at Institution B)</p>
</td>
</tr>
<tr><td><p class="first last">10500</p>
</td>
<td><p class="first last">Paypal Account 3343 (held at Paypal)</p>
</td>
</tr>
<tr><td><p class="first last">10600</p>
</td>
<td><p class="first last">Google Wallet Account 6788</p>
</td>
</tr>
<tr><td><p class="first last">10700</p>
</td>
<td><p class="first last">AMEX Corporate Card Account 9989</p>
</td>
</tr>
</tbody>
</table>
</li>
<li><p class="first">Companies have included a Non-Deposited Funds Account in their GL account
(typically in current assets in their bank account areas). This account is
used to store payments that have been recorded in Odoo - but not yet
deposited into the financial institution. (NOTE: this account is important to
have if the user "batches check deposits"- which is the process of making a
large single deposits of customer payment into the bank (e.g. $20,000USD), but
it is made up of smaller checks (e.g. 20 checks of $1,000 each). Many banks
just record the total deposit amount ($20,000) and don￢ﾀﾙt provide the
breakdown of the individual checks that make up the larger deposit. This
setup approach enables users to drill down and see the individual checks that
make up a larger deposit.</p>
</li>
</ol>
<a name="recommendations"></a>
<h2>Recommendations</h2>
<p>From a cash management and financial control perspective, it is recommended that
users establish the following four (4) bank accounts at their financial
institution at a minimum to handle financial transactions. (NOTE: we recommend
users place the last 4 digits of their bank account in the GL account name of the
account. It helps accountants in their management of the system):</p>
<ul class="simple">
<li>Bank (AR) Account Checking 5434. This is a checking account designated as the
account where payments made to the company are deposited (e.g. a customer
payment made by check is deposited here, or a customer paying by electronic
transaction EFT/ACH is deposited into this GL).</li>
<li>Master Bank Account 2343. This is the master account in which the company
keeps the majority of their funds. Often with the most limited access.</li>
<li>Bank Payable Account Checking 5678. This is a checking account designated for
the company to pay their expenses from. (e.g. Company writes a check to pay a
supplier for their office supplies).</li>
<li>Bank Payroll Account 6656. This is a checking account designated for a company
to pay their employees and payroll.</li>
</ul>
<a name="note"></a>
<h2>Note</h2>
<p>There has been common confusion in the Odoo community about managing bank
statements in the base Odoo system. This module hopes to alleviate this gap and
provide users with a sound alternative to maintain fiscal control, be easy to
understand, and allow for future growth.</p>
<a name="why-this-approach"></a>
<h2>Why this approach?</h2>
<p>Users in Odoo have several options in which to record financial transactions that
affect the balances of a bank account (GL Bank Account entries). We believe our
approach allows these to work in conjunction with each other: Import Electronic
Bank Statements to enter payments (this approach follows the philosophy that you
first find out that a transaction has occurred from your bank which is very
common in Europe due to the electronic nature of transactions).</p>
<ul class="simple">
<li>Payment Order Payments (using the direct Method) - Payments are instantly recorded
and financial transactions posted into the GL</li>
<li>Voucher Payments - Payments are instantly recorded and financial transactions
posted into the GL</li>
<li>Sales Receipts/Refunds</li>
<li>Transfers between accounts (a new module is being developed to help manage this)</li>
<li>Funds moved from the Undeposited Funds GL account to a Bank Account GL account.</li>
<li>Direct Journal Entries</li>
</ul>
<p><strong>Table of contents</strong></p>
<div class="contents local topic" id="contents">
<ul class="simple">
<li><a class="reference internal" href="#configuration" id="id1">Configuration</a></li>
<li><a class="reference internal" href="#usage" id="id2">Usage</a></li>
<li><a class="reference internal" href="#bug-tracker" id="id3">Bug Tracker</a></li>
<li><a class="reference internal" href="#credits" id="id4">Credits</a><ul>
<li><a class="reference internal" href="#authors" id="id5">Authors</a></li>
<li><a class="reference internal" href="#contributors" id="id6">Contributors</a></li>
<li><a class="reference internal" href="#other-credits" id="id7">Other credits</a></li>
<li><a class="reference internal" href="#maintainers" id="id8">Maintainers</a></li>
</ul>
</li>
</ul>
</div>
<a name="configuration"></a>
<h3><a class="toc-backref" href="#id1">Configuration</a></h3>
<p>To configure this module</p>
<ul class="simple">
<li>Go to Settings and activate the developer mode</li>
<li>Go to Settings > Users and Companies > Users</li>
<li>Add users who will prepare the bank statements to the "Bank Statement Preparer"</li>
<li>Add users who will verify them to the "Bank Statement Manager" group</li>
</ul>
<a name="usage"></a>
<h3><a class="toc-backref" href="#id2">Usage</a></h3>
<p>To use this module:</p>
<ul class="simple">
<li>Go to Accounting > Adviser > Bank Statements</li>
<li>Create a new bank statement</li>
<li>Select the account and provide a name</li>
<li>Enter the ending balance from the bank statement</li>
<li>Check the transactions that cleared the bank</li>
<li>Check the balances</li>
<li>Save and submit for review</li>
<li>As a reviewer, check the transactions, totals and balances</li>
<li>Click on Process</li>
</ul>
<a name="bug-tracker"></a>
<h3><a class="toc-backref" href="#id3">Bug Tracker</a></h3>
<p>Bugs are tracked on <a class="reference external" href="https://github.com/OCA/account-reconcile/issues">GitHub Issues</a>.
In case of trouble, please check there if your issue has already been reported.
If you spotted it first, help us smashing it by providing a detailed and welcomed
<a class="reference external" href="https://github.com/OCA/account-reconcile/issues/new?body=module:%20account_banking_reconciliation%0Aversion:%2013.0%0A%0A**Steps%20to%20reproduce**%0A-%20...%0A%0A**Current%20behavior**%0A%0A**Expected%20behavior**">feedback</a>.</p>
<p>Do not contact contributors directly about support or help with technical issues.</p>
<a name="credits"></a>
<h3><a class="toc-backref" href="#id4">Credits</a></h3>
<a name="authors"></a>
<h4><a class="toc-backref" href="#id5">Authors</a></h4>
<ul class="simple">
<li>NovaPoint Group LLC</li>
<li>Open Source Integrators</li>
</ul>
<a name="contributors"></a>
<h4><a class="toc-backref" href="#id6">Contributors</a></h4>
<ul class="simple">
<li>Nova Point Group <<a class="reference external" href="mailto:info@novapointgroup.com">info@novapointgroup.com</a>></li>
<li>Balaji Kannan <<a class="reference external" href="mailto:bkannan@opensourceintegrators.com">bkannan@opensourceintegrators.com</a>></li>
<li>Bhavesh Odedra <<a class="reference external" href="mailto:bodedra@opensourceintegrators.com">bodedra@opensourceintegrators.com</a>></li>
<li>Sandeep Mangukiya <<a class="reference external" href="mailto:smangukiya@opensourceintegrators.com">smangukiya@opensourceintegrators.com</a>></li>
<li>Murtuza Saleh <<a class="reference external" href="mailto:murtuza.saleh@serpentcs.com">murtuza.saleh@serpentcs.com</a>></li>
</ul>
<a name="other-credits"></a>
<h4><a class="toc-backref" href="#id7">Other credits</a></h4>
<ul class="simple">
<li>Nova Point Group <<a class="reference external" href="https://www.novapointgroup.com">https://www.novapointgroup.com</a>></li>
<li>Open Source Integrators <<a class="reference external" href="https://www.opensourceintegrators.com">https://www.opensourceintegrators.com</a>></li>
<li>Serpent Consulting Services Pvt. Ltd. <<a class="reference external" href="https://www.serpentcs.com">https://www.serpentcs.com</a>></li>
</ul>
<a name="maintainers"></a>
<h4><a class="toc-backref" href="#id8">Maintainers</a></h4>
<p>This module is maintained by the OCA.</p>
<a class="reference external image-reference" href="https://odoo-community.org"><img alt="Odoo Community Association" src="https://odoo-community.org/logo.png" /></a>
<p>OCA, or the Odoo Community Association, is a nonprofit organization whose
mission is to support the collaborative development of Odoo features and
promote its widespread use.</p>
<p>Current <a class="reference external" href="https://odoo-community.org/page/maintainer-role">maintainer</a>:</p>
<p><a class="reference external" href="https://github.com/max3903"><img alt="max3903" src="https://github.com/max3903.png?size=40px" /></a></p>
<p>This module is part of the <a class="reference external" href="https://github.com/OCA/account-reconcile/tree/13.0/account_banking_reconciliation">OCA/account-reconcile</a> project on GitHub.</p>
<p>You are welcome to contribute. To learn how please visit <a class="reference external" href="https://odoo-community.org/page/Contribute">https://odoo-community.org/page/Contribute</a>.</p>