What is Storno Accounting in Odoo?

Imagine this: you sent out an invoice to a customer, and a week later you realized there was a mistake. Now you need to correct it, but you don't want to completely erase the original transaction for audit and reporting purposes. This is where Storno Accounting comes in.

Storno accounting is a special method of handling corrections in financial systems, and Odoo supports it in a very efficient and transparent way. In this article, we’ll break down what Storno Accounting in Odoo really is, how it works, and when you should use it.

 

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What is Storno Accounting?

Storno accounting is a way of reversing incorrect accounting entries by creating a new journal entry with the same amount but opposite sign. This technique is widely used in European accounting systems, especially in countries like Germany, Austria, and Switzerland.

Why is it called "Storno"?

"Storno" comes from the Italian word “stornare” which means to cancel or correct. In accounting, a storno entry allows you to cancel out a previous entry without deleting or modifying the original one. It provides full transparency and complies with audit and legal requirements.

How is it different from credit notes?

• Credit Note: Typically used for customer refunds or returns, adjusting sales and taxes accordingly.
   
• Storno Entry: More focused on correcting accounting errors, especially in journals or general ledgers, by using negative values instead of issuing new documents.
   

 

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What is Storno Accounting in Odoo?

In Odoo, Storno Accounting is a configuration option for handling refunds or correction entries. Instead of creating traditional reversal entries, Odoo can post refunds using negative debit and credit values, effectively applying the storno method.

This is especially useful for companies that need their corrections to be traceable and comply with local accounting regulations.

 

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How to Enable Storno Accounting in Odoo

Here’s a simple guide to enable and use storno accounting in Odoo (Odoo 15 and above):

Step 1: Enable Developer Mode

• Go to Settings → scroll down → click Activate Developer Mode.

Step 2: Configure Accounting Settings

• Navigate to Accounting → Configuration → Settings.
   
• Look for Storno Accounting under the Customer Invoices or Vendor Bills section.
   
• Tick the box that says Use negative debit/credit instead of creating new reversing entries.
   

Step 3: Test a Refund Using Storno

• Create a customer invoice → Post it.
   
• Click Add Credit Note.
   
• In the dialog, choose Use Storno.
   
• Odoo will create a journal entry with negative values, effectively cancelling the original.

✅ Pro Tip: Always double-check local regulations to confirm if storno accounting is the legally accepted method for corrections.

 

 

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Benefits of Storno Accounting in Odoo

Using odoo storno accounting brings several advantages:

• Audit-friendly: Keeps the original entry intact for traceability.
   
• Clear Reporting: Easy to identify corrections with negative entries.
   
• Legal Compliance: Supports European accounting standards.
   
• No data loss: Nothing is deleted—only balanced.
   

 

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When Should You Use Storno Accounting?

You should consider using storno accounting odoo when:

• You're working in a country where storno is required or recommended.
   
• You need to correct a posted entry without affecting historical data.
   
• You're preparing for audits and need all corrections to be clearly documented.
   
• You’re handling refunds in a very specific, rule-based environment (e.g., public institutions, non-profits).
   

 

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Conclusion

Storno Accounting in Odoo is a smart way to handle accounting corrections without deleting original entries. Whether you're dealing with audit requirements, legal obligations, or simply want more transparent reporting, storno entries offer a clear and compliant solution.

By enabling this feature in Odoo, you make sure that your books remain accurate and your corrections visible.

 

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FAQs About Storno Accounting in Odoo

1. What is the main purpose of storno accounting in Odoo?

Storno accounting helps reverse posted entries using negative debit/credit values instead of traditional reversal journals, offering better traceability.

2. How do I enable storno accounting in Odoo?

You can enable it from the Accounting Settings by checking the option under the customer or vendor credit note configuration. Developer Mode must be active.

3. Is storno accounting required for all companies?

No, it depends on local accounting regulations. It's mostly used in European countries where legal frameworks require this form of correction.

4. Can I still use regular credit notes if storno accounting is enabled?

Yes, Odoo lets you choose whether to use storno or not each time you create a credit note.

5. Is storno accounting available in all versions of Odoo?

Storno accounting is available in Odoo 15 and above, especially for users working with localized European charts of accounts.