Accurate and well-managed payments are essential for financial reporting. It enables a company to produce reliable financial statements that are crucial for stakeholders, including investors, lenders, and regulators. Timely payments strengthen vendor relationships. Consistently paying bills on time builds trust and goodwill with suppliers, potentially leading to better terms, discounts, and a more cooperative relationship.

Odoo 16 provides different methods for making payments so that users can select their most convenient method of payment. Apart from Bank and Cash payments, we can make check payments in Odoo. Let’s explore the feature of check payments in Odoo.

Accounting application => Configuration menu => Settings => Vendor Payments section => Checks => Save

We can select different Check Layouts from the drop-down to select a layout for printing check. There are different layouts in the drop-down such as Print Check (Top) -US, Print Check (Middle) -US, Print Check (Bottom) -US and None. There are also options to specify whether we want a multi-Pages check and also the check margin measures.

The feature for paying vendor bills in checks is activated. It also allows us to print the check for vendor bills.

 Let’s go to the bills to see how we can register a payment in check. For that, we can select a bill to make a payment.

Accounting Application => Vendors menu => Bills.

You can either create a new bill by selecting the ‘New’ option or select an already existing bill to register check payment. The below is the page of all the Vendor bills configured in Odoo database.

We can see the Number of the Vendor bills, Vendor name, Bill date, Due date, Reference, Activities, Tax excluded, Total amount, Payment status and the status of the bill.

Now, we want to pay the above vendor bill using check. After validating the bill, select the ‘Register Payment’ option to make the payment. Then, a pop-up window appears.

In the ‘Register Payment’ window, the details such as Journal, Amount, Payment date, Memo and the Payment method is specified. Note that we should select the payment method as ‘Checks’ as we are going to make a check payment for this vendor bill.

After entering all these details, select the ‘Create Payment’ option.

We can see that the vendor bill is now in payment.

As we have to print the check for the payment, we can go to the Accounting dashboard after registering the payment in check.

In the dashboard, we can see the ‘Check to print’ in the Bank journal which is the check of the payment registered for the vendor bill. In order to get the printout of the check, click on the ‘Check to print’ option in the Bank journal after which a page of all the checks appears.

Here, we can see the check for the vendor bill registered now.

Click on the ‘Print Check’ option to get the printout of the check after selecting the required check for the vendor bill from the ‘Checks to print’ page.

After making every transactions, we have to reconcile its bank statements. Bank reconciliation ensures that the check amount matches with the bank statements. For that, go to the ‘Bank’ journal for reconciliation.

In the Bank Reconciliation page, click on the ‘New’ option to add the transaction in the bank statement for reconciliation.

After entering the details such as Date, Label, Partner, Amount, Foreign currency and Journal, click on the ‘Save and Close’ option.

Go back to the Bank Reconciliation page to select the payment of the required vendor bill and match it with its counterpart bank statement by validating the bank statements. After validation, we can see that the bank statement is matched. The reconciliation process is now completed.

When you go back to the vendor bills and select the vendor bill that we have reconciled, we can see that the vendor bill is marked as ‘Paid’. The status of the bill is changed from ‘In Payment’ to ‘Paid’.

If you want to get all the details regarding the check payments to keep records and monitor financial transactions, Odoo’s reporting menu is the place where you need to navigate to.

Accounting application => Reporting menu => Check Register

The report provide details of the transactions done in check such as Bank account, Date, Communication, Partner, Currency, Debit, Credit and Balance. We can also download the report as a PDF file or as excel sheet.

Come and join with us at Infintor Solutions, your trusted Odoo ERP Partners to simply your financial transactions and explore new ways to simplify business operations.