Accounting & Financial Management

Overview

SODOO Accounting Module — Main menu and quick-access dashboard

Accounting Dashboard — Financial summary and charts

Accounting is the heartbeat of every business. When you make a sale, revenue is recorded; when you purchase goods, an expense is recorded; when you pay salaries, liabilities decrease. All these financial movements tell a story that reflects the true state of your company.

SODOO Accounting ensures that story is told accurately, completely, and in legal compliance. Built on Odoo 19.0 Community Edition, this module addresses financial management needs for businesses of every size — from SMBs to large enterprises.

The Accounting Cycle

Understanding the basic accounting cycle — repeated every month — is critical to grasping how the system works:

SODOO Accounting Features

Why ERP Accounting?

"I manage it in Excel — it works fine." We hear this often. But does it really work fine? Let's examine the real differences between traditional methods and ERP accounting:

Basic Concepts

To use the Accounting module effectively, you need to understand a few fundamental concepts. These are not SODOO-specific — they are universal accounting principles.

Double-Entry Bookkeeping

The most important invention in accounting history, double-entry bookkeeping was developed by Italian merchants in the 15th century. The logic is simple:

Example: Sale of Goods worth 10,000 TRY (inclusive of VAT at 20%)

Chart of Accounts Structure

In Turkey, the Uniform Chart of Accounts (2KB) is used. Accounts are categorized with 3-digit codes:

Journals

In SODOO, separate journals are used for each type of transaction:

Creating a Customer Invoice

A customer invoice is the official financial document for a sales transaction. In SODOO, invoices can be created in three different ways:

Invoice Creation Methods

1. Automatic Invoice from a Sales Order

This is the most common and recommended method. After a sales order is confirmed:

1. On the sales order page, click the "Create Invoice" button
2. Select the invoicing method:
   • Regular Invoice: For the full order amount
   • Down Payment: For a specific amount or percentage
   • Delivered Quantities: Only for what has been shipped
3. Review the invoice and click "Confirm"

2. Manual Invoice Creation

To create an invoice directly without a sales order:

Accounting → Customers → Invoices → New

1. Customer: Select the customer to invoice
2. Invoice Date: Enter the invoice date
3. Due Date: Automatically calculated based on payment terms
4. Invoice Lines: Add products / services, quantities, and unit prices
5. Taxes are applied automatically (based on product and customer settings)
6. Click "Confirm"

Invoice Statuses

Recording a Vendor Bill

Vendor bills are the financial record of your goods and service purchases. Accurate and timely recording affects both your VAT recovery and your vendor relationships.

Methods for Recording Vendor Bills

1. Automatic from a Purchase Order

When a purchase order exists, this is the easiest approach:

1. Click "Create Bill" on the purchase order
2. Enter the vendor's bill reference number
3. Verify the amounts
4. Click "Confirm"

2. Manual Entry

Accounting → Vendors → Bills → New

3. OCR Automatic Recognition

Upload a bill image or PDF for automatic data extraction:

1. Upload the PDF or image file of the bill
2. The system automatically recognizes the vendor, amount, taxes, and lines
3. Review and correct as needed
4. Confirm the bill

Vendor Bill Fields

Collections & Payments

Recording an invoice and recording a payment are two separate operations. An invoice creates an accounts receivable or payable; a payment closes that account. Both processes are tracked carefully in SODOO.

Customer Collections

When you receive a payment from a customer:

Method 1: From the Invoice

1. Open the relevant invoice
2. Click the "Register Payment" button
3. Enter the payment method (Bank/Cash), amount, and date
4. Confirm — the invoice automatically changes to "Paid" status

Method 2: Batch Collection

Accounting → Customers → Payments → New

1. Select the customer
2. Enter the total payment amount
3. The system lists open invoices
4. Select which invoices to close (partial payment is supported)
5. Confirm

Vendor Payments

When paying a vendor:

Payment Methods

Bank Reconciliation

Bank reconciliation is the process of matching your SODOO payment records against your actual bank statement. This ensures that no transaction is missed or duplicated.

Reconciliation Process

Importing Bank Statements

SODOO supports multiple formats for importing bank data:

• OFX / QFX: Standard bank statement format (widely supported)
• CSV: Comma-separated values (customizable column mapping)
• CAMT.053: European SEPA XML format
• Manual Entry: Type transactions directly
• Bank Sync (Open Banking): Real-time feed from supported banks

Reconciliation Models

Reconciliation models allow SODOO to match bank lines to existing invoices or payments automatically based on rules you define. You can create models that match by:

• Invoice reference number in the bank narrative
• Exact amount match
• Partner name in the transaction description
• IBAN / account number match

Bank Journal and Reconciliation Settings — configuring a bank account

Period Closing

Period closing (month-end or year-end close) is the process of verifying all transactions for a given period and locking the books to prevent further changes. It is a critical internal control step.

Month-End Close Checklist

1. Ensure all customer invoices for the month are confirmed
2. Ensure all vendor bills for the month are recorded
3. Complete bank reconciliation for all accounts
4. Run the Aged Receivable and Aged Payable reports — investigate anomalies
5. Review outstanding checks and deposits in transit
6. Record depreciation entries (if applicable)
7. Record any accruals or prepayments
8. Review the Trial Balance for unusual balances
9. Lock the period to prevent backdated changes

Locking a Period

Once the period is closed and verified, you should lock it to protect the integrity of your records. In SODOO:

Accounting → Configuration → Settings → Lock Date

Set the Tax Return Lock Date and All Users Lock Date to prevent entries being posted in or before the closed period.

VAT Declaration

Value Added Tax (KDV in Turkish) is Turkey's primary consumption tax. Businesses are obligated to file a monthly VAT return and remit net VAT (output VAT minus input VAT) to the Tax Administration (GIB).

How VAT Works in SODOO

Every transaction involving VAT is tracked automatically:

• Output VAT (391): VAT collected from customers on sales invoices
• Input VAT (191): VAT paid to vendors on vendor bills
• Net VAT Payable: Output VAT minus Input VAT = amount to pay to GIB

VAT Report

Accounting → Reporting → Tax Report

The Tax Report shows:

• Total taxable sales by VAT rate (0%, 1%, 10%, 20%)
• Total output VAT by rate
• Total deductible input VAT
• Net VAT payable or refundable

VAT Rates in Turkey (2026)

Depreciation

Fixed assets (machinery, vehicles, computers, furniture) lose value over time through use and wear. Depreciation is the systematic allocation of that cost over the asset's useful life.

Depreciation Methods in SODOO

Recording Depreciation

1. Navigate to Accounting → Accounting → Assets
2. Create a new asset with acquisition cost and useful life
3. SODOO generates the full depreciation schedule automatically
4. At month-end, click "Post All Depreciations" to record all due entries
5. The entries debit Depreciation Expense (7XX) and credit Accumulated Depreciation (257)

Balance Sheet

The Balance Sheet (Bilanço) is a snapshot of your company's financial position at a specific date. It shows what you own (assets), what you owe (liabilities), and what remains for the owners (equity).

Accessing the Balance Sheet

Accounting → Reporting → Balance Sheet

Balance Sheet Key Sections

Income Statement

The Income Statement (Gelir Tablosu / P&L) shows your company's revenues, costs, and resulting profit or loss over a specific period (month, quarter, or year).

Accessing the Income Statement

Accounting → Reporting → Profit & Loss

P&L Structure

Cash Flow

The Cash Flow Statement shows how cash moves in and out of your business — from operations, investing activities, and financing activities. A profitable company can still fail if it runs out of cash, making this report critical.

Cash Flow Categories

Accounting → Reporting → Cash Flow Statement

Aging Reports

Aging reports show how long outstanding invoices or bills have been unpaid, grouped by time buckets (e.g., 0–30 days, 31–60 days, 61–90 days, 90+ days).

Aged Receivables

Accounting → Reporting → Aged Receivable

Use this report to:

• Identify customers with long-overdue balances
• Prioritize collection activities
• Estimate bad debt provisions
• Measure your Days Sales Outstanding (DSO)

Aged Payables

Accounting → Reporting → Aged Payable

Use this report to:

• Plan vendor payments and maintain good supplier relationships
• Avoid late payment penalties
• Measure your Days Payable Outstanding (DPO)

Turkey Localization

SODOO includes a comprehensive Turkey localization package developed by the 2KB Consortium, covering the full spectrum of Turkish accounting and tax compliance requirements.

e-Invoice System

Turkey's e-Invoice (e-Fatura) system, managed by the Revenue Administration (GIB), has been mandatory for large taxpayers since 2012 and expanded to cover most businesses. It replaces paper invoices with legally valid XML documents exchanged through the GIB platform.

e-Invoice vs e-Archive

e-Invoice Workflow in SODOO

2KB Chart of Accounts

The 2KB (İki Haneli Kod — Two-Digit Code) Uniform Chart of Accounts is the standard accounting framework prescribed by Turkish law for all companies. SODOO ships with this chart pre-configured.

The chart is organized into 7 main groups (1–7 as described in the Basic Concepts section) and subdivided into specific accounts for each line of business. Common customizations include:

• Adding sub-accounts for cost centers or departments
• Creating additional revenue accounts by product category
• Configuring withholding tax (stopaj) accounts
• Setting up VAT withholding (KDV tevkifatı) accounts

Accounting General Settings — the chart of accounts and localisation

Key Performance Indicators

The following KPIs are commonly tracked using SODOO Accounting data:

Frequently Asked Questions

Best Practices

Daily Habits

• Post invoices the same day: Never let unposted invoices accumulate — it distorts your AR balance.
• Record vendor bills promptly: Ensures input VAT is captured in the correct period.
• Reconcile cash daily: Compare cash journal balance with physical cash count every day.

Weekly Habits

• Review Aged Receivables: Follow up on invoices approaching their due date.
• Plan vendor payments: Use the Aged Payables report to avoid missing payment deadlines.
• Import bank statements: Keep reconciliation current — don't let it pile up to month-end.

Month-End Habits

• Complete all reconciliations before generating reports.
• Run the Tax Report and compare it with your accounts 191 and 391 balances.
• Lock the period immediately after filing your VAT return.
• Review the Trial Balance for any unexpected or large balances.
• Compare to prior period: A sudden jump in any line item warrants investigation.

Configuration Best Practices

• Assign correct income/expense accounts to every product category to avoid manual corrections.
• Configure payment terms for each customer and vendor — this drives automatic due date calculation.
• Set up reconciliation models for recurring bank transactions (bank charges, standing orders).
• Use analytic accounts (cost centers) if you need department-level P&L reporting.
• Train staff on duplicate bill checks — always enter the vendor's reference number.