How to avoid previous invoices/payments to impact your accounting using Odoo “Invoice Switch Threshold” functionality ?
What is the “Invoicing Switch Threshold'' functionality ?
The Invoicing Switch Threshold is a date field in the Accounting module configuration (starting from Odoo V14) that allows you to archive instantly all the journal entries made in Odoo before a certain date.
How to use the accounting threshold in Odoo ?
Go on the accounting module configuration up to the box “Invoicing Switch Threshold”.
Based on the date set-up in the Invoicing Switch Threshold, all the journal items in Odoo Accounting module before the date set-up will be disregarded.
Practical example : considering the three following journal entries :
Vendor bill dated 15.02.2022;
Customer invoice dated 20.04.2022;
Customer invoice dated 25.05.2022.
Provided that the Invoicing Switch Threshold is set as at 25.05.2022, the journal entries 1 and 2 would be archived while the journal entry 3 would not.
When to use it ?
Most of the time, the Invoicing Switch Threshold would be used when you want to start a fresh new accounting in Odoo without being impacted by the data provided by the other module (e.g. purchase or sale). The typical example is when you or your client is using another software for accounting while using Odoo to manage its purchases and sales and the related invoicing (without considering the accounting). Since the Purchase and Sales modules are linked to the Accounting module, the risk is to double count some journal items when exporting the data from the previous software in Odoo (once in the previous software as a manual entry and once in Odoo Accounting module as automatic entry based on the Purchase and Sales module interaction with Accounting module).
How to remove it ?
You simply have to remove the Invoicing Switch Threshold date in the Accounting configuration and save it. Odoo will automatically re-integrate all the journal entries that were previously archived/canceled in your accounting.
Tips and tricks : when you use the Invoice Switch Threshold, please note that all the journal items of the recorded period would be considered as “Canceled” in Odoo. If a journal entry taking place before the threshold period is reconciled with another journal entry taking place AFTER the threshold period, please note that this journal entry would not be canceled. It means that if a payment is reconciled after the threshold period, your client could have a remaining balance in the outstanding payment account.
Use of the threshold : https://watch.screencastify.com/v/lK5ONd1Kd23dyrL9P9bI