How to Activate checks payment methods in Odoo
There are a number of businesses that focus on sales. The sale cannot be completed without receiving money from the customer. These days, consumers have a number of options available to them for paying their bills. A few examples of acceptable forms of payment include credit cards, bank transfers, physical cash, and other possibilities.
When we offer a product to a consumer, they have access to all of the available options for that product. Because of this, a store or other type of organization must provide customers with a variety of options for making payments. We can manage the various payment options in a straightforward manner, thanks to Odoo.
Throughout Odoo, we utilized a variety of various payment mechanisms. At points of sale, many methods of payment, including cash, bank transfers, checks, customer accounts, and automated teller machines (ATMs), are accepted. In today’s tutorial, we will show you how to activate check payment methods in Odoo!
Table of contents:
- Reasons to Activate checks payment methods in Odoo
- How to Activate checks payment methods in Odoo
Reasons to Activate checks payment methods in Odoo
Paper checks may seem like a thing of the past now that there are digital payment methods such as Venmo, Zelle, and Apple Pay, but there are still some situations in which it may be preferable to use paper checks. For example, if you are paying for a large purchase with a credit card, it may be more convenient to use a paper check.
For an eCommerce business, the only reason that urges you to use checks is their degree of traceability. Paper checks provide a level of traceability that is not available with money orders, cashier’s checks, automated bill pay systems, or cash. Thus they are the best option to use if you value being able to track your transactions and the payee does not take debit or credit cards. When you send a paper check to another person in the mail, you have the option of choosing the specific kind of postal service that you wish to use, as well as a tracking system. (When it comes to some sorts of payments, such as insurance premiums or taxes, being able to prove the mailing date of a payment can be pretty crucial.)
You will be able to obtain a copy of the canceled check from your bank once the funds from your check have been cleared. You will simply be able to present your postal receipt and supply the company or creditor with a copy of your canceled check should there be any controversy over the payment that you have made. If you paid using a money order, especially one that was not issued by a bank, tracking down your payment may be an expensive and time-consuming endeavor.
How to Activate checks payment methods in Odoo
Step 1: Activate checks payment methods
You may activate the checks payment method by navigating to Accounting > Configuration > Checks. This is also the location where you can set up the Check Layout for use with the check’s payment method. The Checks setting just has to be engaged once for the functionality to be automatically configured for your outgoing payments.
It is possible that some modules, which are required to print checks in certain countries, are already installed by default. To print United States checks, for instance, you need to have the U.S. Checks Layout module installed.
Step 2: Configure checks format
The following check formats are supported by default in Odoo for use in the United States:
- Quickbooks and Quicken: Checks are shown on top, followed by stubs in the center and at the bottom in Quickbooks and Quicken;
- Peachtree: the check is in the centre, and the stubs are on both the top and the bottom;
- ADP: Checks are placed at the bottom of the ADP, while stubs are placed at the top.
Step 3: Review a payment with checks
There are three processes involved when paying a provider with a check, and they are as follows:
- putting in a payment request
- printing checks all at once for registered payments using batch printing
- checking the accuracy of the bank statements
Make a payment with a check by registering it: To record a payment, you must first open a supplier bill by selecting Purchases > Vendor Bills from the main menu. You will be able to record a payment for the provider when the bill has been verified. Make sure that the Checks payment method is selected, and then confirm the payment.
Print checks: You are able to view the total number of checks that have been registered on your Accounting Dashboard within the Bank Journal. You have the ability to print the checks that have been reconciled by selecting the Checks to print option from the drop-down menu.
You may print all of the checks at once by going to the list view, selecting all of the payments, and then clicking on the Print button.
Step 4: Register customer payments by checks
There are two different approaches to taking care of payments that are made by check. Both methods are supported by Odoo, allowing you to select the method that corresponds most closely with the way you typically work.
Undeposited Funds: Once you have the check in your possession, you must update the invoice to reflect payment by check. (using a Check journal and posting it on the account for Undeposited Funds) Once the check has been deposited into your bank account, you will need to transfer money from the account for Undeposited Funds to your bank account.
Only one item has to be made in the journal: after you have the check in your possession, you report a payment to your bank that was made by check without first passing through the Undeposited Funds. After processing your bank statement, you will complete the matching with your bank feed and the check payment. You will not need to create a separate journal entry for this step.
We suggest going with the first strategy since it will yield the best results (your bank account balance is accurate, taking into account checks that have not been cashed yet). The amount of labor required for either strategy is the same.
Even though the first strategy is the more efficient one, Odoo continues to offer the second method since many accountants are accustomed to using it (QuickBooks and peachtree users). If you routinely make many deposits of checks at once into your bank accounts, you may want to investigate the functionality known as Deposit Ticket.
We hope this tutorial has cleared your mind on how to activate checks payment methods in Odoo. In a manner analogous to the imposition of a minimum purchase requirement, some companies levy a flat fee on each and every credit card transaction. Processing credit card transactions can frequently result in significant costs being incurred by small businesses. One alternate approach to covering these costs is to implement a supplemental fee for each transaction that is made using a credit card.
Checks offer a “degree of traceability that you can’t obtain via money orders, cashier’s checks, automatic bill pay systems, or cash,” according to Moneycrashers’ explanation. When you send a paper check through the mail, you will receive a tracking method from the location where you are sending the check. Your bank will also preserve a record of the canceled check once your check has been processed and cleared. This traceability is often a very significant advantage, particularly for larger payment amounts, in the event that any issues emerge.
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