Accounting · Odoo glossary
Bank Reconciliation
Learn what bank reconciliation means, how Odoo matches bank transactions to accounting records, and where reconciliation models fit into the process.
Definition
In general ERP practice
Bank reconciliation compares the transactions and balance reported by a bank with the corresponding accounting records. Differences are identified, explained and, where necessary, corrected so that recorded cash movements can be supported by evidence.
Common differences include timing, unrecorded fees, duplicate entries and payments that have not yet been assigned to the correct invoice. Matching an amount is only part of the task: the date, reference and business counterpart also matter.
In Odoo
In Odoo, reconciliation validates bank transactions by matching them with accounting counterpart items, including invoices, vendor bills and payments. Transactions without an existing counterpart, such as a bank fee, can be assigned to an account.
Odoo 19 provides a Bank Matching view with suggested matches. Default matching rules and configurable reconciliation models help process recurring transactions. Until a transaction is reconciled, its entry uses the bank journal’s suspense account; reconciliation replaces that counterpart with the appropriate account.
A practical matching sequence
Identify the movement
Check the bank reference, amount, date and payer or recipient.
Find its business context
Determine whether it settles an invoice, a bill, a transfer or a separate expense.
Review the difference
Explain any remaining amount before completing the match.
Bank import and reconciliation
Importing or synchronising a bank feed brings transactions into the system. Reconciliation determines what those transactions represent in the books. A successfully imported transaction may still need accounting review.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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