Monitor Your Project’s Profitability in Odoo 17 Using Analytic Accounting

ADHICHAND
May 31, 2024
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An organization’s capacity to carry out tasks methodically has a significant impact on its project management. A company will benefit from reducing work pressure and planning costs by having a clear strategy for every stage of the project before it starts. With an effective project management system, you can plan and monitor various project processes to improve operational transparency inside your business. The Odoo Project module provides efficient capabilities that are customized to meet your needs and ensure efficient project management. From start to finish, this module will assist you in achieving excellence in all project-related processes.

Odoo makes it easy to assess a project’s profitability. Profitability is an essential concept for any undertaking, regardless of its size. It will help you decide whether to proceed with the project or not. The profitability of the project can be ascertained following the creation of project invoices. Based on the quantity ordered, the achievement of milestones, or the timesheets of the assigned personnel, invoices may be generated. The profitability can be computed by deducting the total amount invoiced from the project cost.

You will find the Profitability option to activate under the Settings menu of the Project module.

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Activate this tool to monitor the costs and profits of your project. When you begin a new project, this module will create an analysis account with the same name as the project. The project’s earnings and expenses will be included in this analytical statement. By calculating the project’s profitability using the documented costs and income, you can ascertain its profitability quickly.

Launch a new project by using the Odoo Project module.

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In the new project creation box, provide the project name, tasks, customer, tags, project manager, scheduled date, and company. By activating the Billable feature located in the project’s Settings tab, you can charge for the time and materials you use on the project.

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The cost and revenue will be paid to the Analytic Accounting that is specified in the settings tab in Odoo 17. Once a project has been created, you can add more tasks to it. We discussed how to establish tasks and projects in the Project module in our earlier posts. You can refer to those blogs for guidance if you’re not sure how to add a new project and task in Odoo.

When you launch a new project, you may create a sales order and configure it within the project window. This will allow timesheets to be linked to the order to generate invoices. Before creating a sales order, you can add the project as a service product and select the Invoicing Policy as Fixed Price/Prepaid, Based on Milestones, or Timesheets as necessary.

To create a sales order, navigate to the Sales module and select the Orders option.

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The sales order can include the project’s customer in addition to the Invoice Address, Delivery Address, Quotation Template, Referrer, Order Date, price list, and Payment Terms. The Order Lines may include the service product. To confirm that the sales order has been created, use the Confirm button.

Now that the sales order for the project has been created, it can be linked to it as seen below in the Default Sales Order Item field on the Settings tab.

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Jobs without designated sales order items will be considered in this sales order. After configuring the sales order, you can click the Save button. The Create Invoice button will appear as shown in the image below when you do this.

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Verify the invoice, then click the Register Payment option to register the payment once it has been confirmed. When the project is complete, go to the project dashboard in the Project module to get details on the profitability of the project.

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The Kanban view of the project dashboard displays every specified project in the module. The three vertical dots located in the upper right corner of each project tab will show options related to observing and reporting on various project operations.

Choose Project Updates to view the profitability.

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The project’s progress is shown on one side of the screen in the screenshot above. Using the smart buttons on the right side of the page, you can keep an eye on and manage the Sales Order, Tasks, Recorded Hours, Forecasted Hours, Burndown Chart, Timesheets & Planning, Billable Time, Invoices, Budget, Gross Margin, and Collaborators. To see the Sold quantity of units, simply scroll downward.

The Total Sold tab displays the recorded Effective and Remaining hours’ details. The Profitability tab displays the profit you made on this project. If a budget has been established for the project, it can be viewed on this page. Here, you can see the documented costs and income associated with the analytic accounting in Odoo 17. Project expenditures and expenses are subtracted from reported revenue to determine the project’s overall margin. If there is a positive margin number, the project is successful. If the value is negative, we can conclude that the endeavour is a failure.

The project editing window’s Gross Margin smart button can be used to get a report of the costs and revenues indicated in the analytic accounting for that particular project in odoo.

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Your decision over whether or not to proceed with a project will be aided by reports regarding its profitability. By precisely capturing project data, the Odoo Project management system may help you comprehend the gain or loss in a project. Visit our earlier blog to learn more about How to Determine Project Profitability Using Odoo.

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