How to Set Up Chart of Accounts in Odoo 19

Chart of Accounts in Odoo 19

The Chart of Accounts (CoA) is the foundation of your accounting setup. Odoo 19 provides pre-configured CoA templates for 70+ countries. You can use one as-is or customize it.

Step 1: Install Accounting

1. Go to Apps → search Accounting → Install
2. On first launch, Odoo asks you to select a Fiscal Localization Package

Step 2: Choose Fiscal Localization

The localization package determines your default CoA, tax structure, and reports:

Go to Accounting → Configuration → Settings → Fiscal Localization to change the package after initial setup.

Step 3: Review Default Accounts

Go to Accounting → Configuration → Chart of Accounts to see all accounts. Key account types:

Step 4: Create Custom Accounts

1. Go to Accounting → Configuration → Chart of Accounts
2. Click New
3. Fill in:
   • Code: Account number (e.g., 4100)
   • Name: e.g., "Product Sales Revenue"
   • Type: Income, Expense, Asset, Liability, Equity
   • Allow Reconciliation: Yes for bank/receivable/payable
   • Tags: For grouping in reports

Step 5: Configure Default Accounts

Go to Accounting → Configuration → Settings:

• Default Sales Account — used on customer invoices
• Default Purchase Account — used on vendor bills
• Bank Suspense Account — for unreconciled bank transactions
• Outstanding Receipts/Payments — for payment processing

Also set default accounts on Product Categories:

• Income Account — where product sales post
• Expense Account — where COGS/expenses post
• Stock Valuation Account — for inventory valuation

Step 6: Account Tags for Reporting

Create account tags for custom report grouping: Accounting → Configuration → Account Tags. Assign tags to accounts for flexible financial reporting beyond the standard CoA structure.

Common Mistakes

• Wrong localization — Changing localization after posting transactions creates mismatches. Choose correctly at setup.
• Deleting default accounts — Some accounts are referenced by default settings. Archive instead of delete.
• No product category accounts — Products without category accounts use the default, which may not be correct for all product types.
• Ignoring reconciliation setting — Receivable and payable accounts must have reconciliation enabled for payment matching.