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Odoo Payroll Reflection in Accounting

Odoo is an open-source business management software suite that includes a variety of applications, including accounting and payroll modules. The integration between the Payroll and Accounting modules in Odoo allows for seamless reflection of payroll transactions in the accounting system. Here is an overview of how this reflection typically occurs:

Payroll

Set up salary rules by assigning appropriate debit and credit accounts to each relevant rule.

Payroll => Configuration => Rules
Odoo Payroll Reflection in Accounting

Access the salary rules, and within each specific rule’s Accounting tab, choose the debit and credit accounts and then save the changes. An example is provided for Basic Salary; similarly, designate the debit and credit accounts for all other rules in a similar manner.

Odoo Payroll Reflection in Accounting

After aligning each rule with the corresponding debit and credit accounts, proceed to configure the salary structures.

Payroll => Configuration => Structures
Odoo Payroll Reflection in Accounting

To create a new salary structure, initiate the process by clicking on the “New” button.

Odoo Payroll Reflection in Accounting

Provide a name for the structure, select the type, and ensure the selection of the salary journal is accurate. Proceed to add salary rules by clicking the “Add a line” button, and finally, save the newly configured salary structure.

Before generating a payslip, it is essential to ensure that the salary structure in the employees’ contracts corresponds accurately.

Now let’s create a payslip and see the reflection in accounting.

Payroll => Payslips => To Pay
Odoo Payroll Reflection in Accounting

To create a new payslip click on the New button.

Choose the employee’s name and select the relevant period. The associated contract and structure will be displayed automatically.

Proceed by computing the sheet to finalize the payslip.

Review the salary computation, and if everything appears correct, proceed to create a draft entry.

Navigate to the “Other Info” tab to view details such as the associated salary journal and Accounting Entry. Clicking on the draft entry will allow you to review the journal items associated with the payslip.

After reviewing the draft entry, click on the “Post” button to finalize and post the journal entries.

Similarly, you can verify the journal entries by accessing the Accounting module.

Accounting => Journal Entries

In this section, you’ll find the posted journal entry labeled as “salary.” Upon opening it, you can access detailed information regarding the entry.

In conclusion, the seamless integration of Odoo Payroll and Accounting ensures not just efficiency in payroll management, but also precision in financial reporting. With transparent accounting entries, Odoo empowers businesses to navigate the intricate landscape of payroll with ease, offering a comprehensive solution that harmonizes human resources and financial management.