Home > Eclipse, Financial Accounting, OpenERP > Creating Partners, Products, Chart of Accounts, Invoices(Customers and Suppliers), Partner Balances in OpenERP

Creating Partners, Products, Chart of Accounts, Invoices(Customers and Suppliers), Partner Balances in OpenERP

In this tutorial i will show how to create partner with their account, Products (for Selling and Purchases), Chart of Accounts of a company, Customer Invoices, Supplier Invoices, Partner Balances etc and mush more.

Step 1: Create following chart of account; if you don’t know how to create accounts in openerp follow the post (https://mohsinpage.wordpress.com/2010/03/01/hierarchy-and-nature-wise-classification-of-accounts-chart-of-account-in-open-erp/)

Chart of Account

Chart of Account

Step 2: Create the four journals i.e. Sales Journals, Purchase Journal, Bank Book and Opening Balance Journal; if you don’t know how to create a journal in openerp follow the post(https://mohsinpage.wordpress.com/2010/11/08/how-to-create-account-books-journal-in-openerp/)

Journals

Journals

Step 3: Create the following partners (Customers and Suppliers) using ‘Acc Payable’ and ‘Acc Receivable’ as partners default payable and receivable accounts from accessing Partners -> Partners -> New Partners.

Customer Partners

Customer Partners

Suppliers Partners

Suppliers Partners

Step 4: Create a product in openerp for example ‘Machine 1’. Provide the following information to the product form (Products → Products → Press New Button).

Product Name: Machine 1

Code: machine

Can be sold: checked

Can be Purchase: checked

In ‘Prices and Suppliers’ Tab

Cost Price: 1.00

Sale Price: 1.00

Costing Method: Standard Price

In ‘Accounting Tab’

Income Account: 17 Sales (Select income account from chart of account)

Expense Account: 18 Purchases (Select the expense account that will be deduct from sales in Profit & Loss Statement)

Note: I am not giving the original cost and sales prices, plz you must try for original price of a product.

Product Machine 1

Product Machine 1

Step 5: Now enter the journal voucher for Bank (Debit) 10000 and Capital (Credit) 10000. select Opening Journal as journal and date 31 june 2010. Voucher will access from Financial Management -> Entries Encoding -> Entries Encoding by Move.

Opening Balance

Opening Balance

Step 6: set the currency for your country and its rate. Then assign the new created currency to company.

Step 7: Create the following supplier invoices.

Select the Supplier Invoice from Financial Management → Invoices → Supplier Invoices –> New Supplier Invoice

Now enter following invoices

Supplier Invoice 1:

Partner: Dawood & Co

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Total: 2500 (that is invoice total, will be used to validate the invoice lines total)

In ‘Other Info’ tab

Date Invoiced: 07/01/2010 (01 july of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 2500

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Purchases (Debit) → 2500

Acc Payable (Credit) → 2500

Note: You can check out the Partner balance and Acc Payable from different ways

Partner Balance from Financial Management → Reporting → Partner Accounts → Partner Balance

Acc Payable Balance from Financial Management → Chats → Chart of Accounts.

Acc Payable Ledger from Financial management → Configuration → Financial Accounting → Financial Accounts → List of Account → select Acc payable in form view → Click on General Ledger button on right side panel of form view.

Supplier Invoice 2:

Partner: Naeem

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Total: 1000 (that is invoice total, will be used to validate the invoice lines total)

In ‘Other Info’ tab

Date Invoiced: 07/01/2010 (01 july of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 1000

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Purchases (Debit) → 1000

Acc Payable (Credit) → 1000

Supplier Invoice 3:

Partner: Saleem & Co

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Total: 1500 (that is invoice total, will be used to validate the invoice lines total)

In ‘Other Info’ tab

Date Invoiced: 07/01/2010 (01 july of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 1500

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Purchases (Debit) → 1500

Acc Payable (Credit) → 1500

Supplier Invoice 4:

Partner: Asif

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Total: 2000 (that is invoice total, will be used to validate the invoice lines total)

In ‘Other Info’ tab

Date Invoiced: 07/01/2010 (01 july of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 2000

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Purchases (Debit) → 2000

Acc Payable (Credit) → 2000

Supplier Invoice 5:

Partner: Ahmad

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Total: 5500 (that is invoice total, will be used to validate the invoice lines total)

In ‘Other Info’ tab

Date Invoiced: 07/01/2010 (01 july of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 5500

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Purchases (Debit) → 5500

Acc Payable (Credit) → 5500

Note:

Now check the balances of Purchase and Acc payble in chart of this fiscal year that will

Purchases (Debit) → 12500

Acc Payable (Credit) → 12500

Partner (supplier) Balances

Dawood & Co: 2500

Naeem : 1000

Saleem & co: 1500

Asif: 2000

Ahmad : 5500

Step 8: create the following customer invoices.

Select the Supplier Invoice from Financial Management → Invoices → Customer Invoices –> New Customer Invoice

Now enter following invoices

Customer Invoice 1:

Partner: Rizwan & Co

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Date Invoiced: 07/03/2010 (03 Jul of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 3000

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Acc Receivable (Debit) → 3000

Sales (Credit) → 3000

Customer Invoice 2:

Partner: Crown & Co

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Date Invoiced: 07/03/2010 (03 Jul of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 3000

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Acc Receivable (Debit) → 3000

Sales (Credit) → 3000

Customer Invoice 3:

Partner: Rafiq & Sons

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Date Invoiced: 07/03/2010 (03 Jul of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 2

Unit Price: 6000

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Acc Receivable (Debit) → 6000

Sales (Credit) → 6000

Customer Invoice 4:

Partner: Naseem & Co

Invoice Address: Automatically will be selected

Account: Acc Payable Will be automatically will be selected

Date Invoiced: 07/03/2010 (03 Jul of 2010)

Force Period: 07/2010 (Select the proper period of fiscal year according to invoice date)

‘Invoice Line’ in ‘Invoice’ tab

Product: Machine 1

Quantity: 1

Unit Price: 3000

Press OK Button.

Note: when you validate this invoice, it will create an accounting entry i.e.

Acc Receivable (Debit) → 3000

Sales (Credit) → 3000

Note:

Now check the balances of Sales and Acc Receivable in chart of this fiscal year that will

Acc Receivable (Debit) → 15000

Sales (Credit) → 15000

Partner (Customer) Balances

Rizwan & Co: 3000

Crown & Co : 3000

Rafiq & Sons: 6000

Naseem & Co: 3000

Reporting:

Trial Balance:

Financial Management -> Legal Statements -> Generic Reports -> Account Balance for 2010-2011

Trial Balance

Trial Balance

Partner Balance:

Financial Management -> Reporting -> Partner Accounts -> Partner Balance for 2010-2011

Partner Balance

Partner Balance

General Ledger:

Financial Management -> Legal Statements -> Generic Reports -> General Ledger

General Ledger

General Ledger

Print Journal:

Financial Management -> Legal Statements -> Generic Reports -> Print Journal

Purchase Journal

Purchase Journal

Sale Journal

Sale Journal

Future Post:

So far i create the background for paying existing invoices. In Future post i will introduce two three different ways to payment and receipt  on behave of these invoice and its reconciliation.

Methods Include:

Entries Encoding by Line

Entries by Statements

Direct Payment and Receipt from Invoices.

in future post i will also discuss how to reconcile the invoices with their relevant accounting vouchers and bank reconciliation in openerp using the same above example.

  1. Hamood
    May 11, 2011 at 1:12 pm

    Daar Moshin,

    Great article about Beginners in Openerp.

    Thanks you very much.

    can you please post the second part?

  2. Khalid
    December 22, 2011 at 12:30 pm

    coooooooooooooooooooooooooool

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