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Account Reconciliation

The Reconcile program in ARE18 provides a centralized interface for matching open journal items across accounts. It is based on the Account Reconcile OCA module, enhanced with a custom Smart Filter developed specifically for TBPC to speed up matching.

What Is Reconciliation?​

In accounting, reconciliation is the process of linking journal items that offset each other so that balances are properly cleared. Common examples:

  • Matching a vendor bill (credit on Accounts Payable) with a payment (debit on Accounts Payable) → clears the A/P balance
  • Matching a customer invoice (debit on Accounts Receivable) with a customer payment (credit on A/R) → clears the A/R balance
  • Matching a withholding tax accrual with its subsequent tax payment
  • Matching an advance payment with a later bill or invoice

When two or more items balance to zero, Odoo links them via a reconciliation record, and the corresponding invoice/bill/payment is marked Paid.

Accounting menu > Accounting > Reconcile

This opens the account-level reconciliation dashboard:

Reconcile Dashboard

The Reconcile Dashboard​

The left sidebar lists all accounts with unreconciled items, grouped by partner. Each line shows:

  • Account code and name (e.g., 221000 Accounts Receivable Trade)
  • Partner name (e.g., EPSON PRECISION (PHILIPPINES), INC.)

Accounts with many open items are candidates for cleanup. Common accounts you'll see here:

AccountWhy Items Accumulate
Accounts Receivable TradeInvoices not yet reconciled with payments
Accounts Payable Local PurchaseBills not yet reconciled with payments
Expanded Withholding TaxAccruals waiting for BIR payment
HDMF / SSS / PhilHealth Premium PayableMonthly accruals waiting for remittance
VAT Payable / VAT OutputMonthly accruals waiting for BIR payment
Accrued OthersVarious accruals awaiting actual payment

Click any item in the sidebar to open its reconciliation view.

The Reconciliation View​

When you click an account/partner pair, Odoo opens the matching interface on the right side:

Reconciliation View

Top Panel — Staging Area​

The top panel is the staging area for items you're about to reconcile. Select items from the list below, and they appear here with their debit/credit amounts. When the selected items balance to zero, you can click Reconcile to finalize the match.

Middle Panel — Smart Filter​

This is a custom ARE18 feature that adds three filter modes:

FilterBehavior
ExactShow only items whose residual amount exactly matches the target
Near ±10%Show items whose residual is within 10% of the target
AllShow all open items for the partner (default)

The Smart Filter dramatically reduces the time needed to find the matching counterpart for a payment or bill. See Reconcile Smart Filter for details.

Bottom Panel — Candidate List​

The list shows all open journal items for the selected account and partner, filtered by the Smart Filter mode. Each row displays:

  • Date — transaction date
  • Journal Entry — move name (e.g., RNV2025/01471)
  • Due Date — when the item is due
  • Account — account the item posts to
  • Partner — customer or vendor
  • Label — description
  • Residual Amount — open amount waiting to be matched

Click View to drill down into the source document (invoice, bill, or payment).

How to Reconcile​

Scenario: Match a payment with its invoice​

  1. Navigate to Accounting menu > Reconcile
  2. In the sidebar, click the account/partner you want to work on
  3. In the bottom list, click the items you want to match:
    • The invoice (debit side)
    • The payment (credit side)
  4. Watch the staging area at the top — when the total balances to zero, the Reconcile button becomes active
  5. (Optional) Use Smart Filter > Exact to quickly narrow down candidates
  6. Click Reconcile to finalize the match

Odoo creates a reconciliation record and:

  • Marks the invoice as Paid
  • Marks the payment as reconciled
  • Removes both items from the Reconcile dashboard

Scenario: Partial reconciliation​

If amounts don't match exactly (e.g., $1,000 invoice, $950 payment), you can still reconcile. Odoo will:

  • Reconcile $950 between the two
  • Leave a $50 residual open on the invoice
  • Keep the invoice in the Reconcile dashboard until the remainder is matched

Reconciliation vs Bank Reconciliation​

These are related but different:

TypeWhat It MatchesWhere
Account Reconciliation (this page)Journal items within the same account (e.g., invoices vs. payments on A/R)Accounting menu > Reconcile
Bank ReconciliationBank statement lines with internal paymentsAccounting dashboard > Bank journal card > Reconcile

Bank reconciliation uses the same OCA Account Reconcile infrastructure but is driven by imported bank statement lines instead of account views.

Best Practices​

  • Reconcile regularly — weekly is ideal, monthly at minimum. The longer items sit unreconciled, the harder it becomes to match them.
  • Clear accruals after payment — remittances for BIR, SSS, PhilHealth, HDMF should be reconciled monthly to keep the Payable balances clean.
  • Use Smart Filter liberally — the Exact filter saves significant time on high-volume accounts.
  • Don't leave partial matches hanging — if you can't fully reconcile, at least note the reason in the source document's chatter.
  • Check partner filtering — always verify you're reconciling within the same partner, not across partners.
  • Respect lock dates — reconciliation of items in locked periods may be blocked.