While computing the profit and gains from business or profession, there are certain expenditures that are disallowed. So we should not allow the benefit of such expenditures. Disallowed expenses are those expenses that cannot be deducted in the fiscal result but can be deducted in your bookkeeping result. So you can get the financial results in real-time by setting disallowed expense categories and obtaining periodic changes.

1. Disallowed Expense
in Odoo 15
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2. INTRODUCTION
❖ While computing the profit and gains from business or profession, there are certain
expenditures that are disallowed. So we should not allow the benefit of such expenditures.
❖ Disallowed expenses are those expenses that cannot be deducted in the fiscal result but
can be deducted in your bookkeeping result.
❖ So you can get the fiscal results in real-time by setting disallowed expense categories and
obtaining periodic changes.

3. ❖ Make sure account_disallowed_expenses module is installed

4. ❖ Then Goto Configuration > Disallowed Expenses Categories

5. ❖ After installing this module, you can see the Disallowed Expenses Categories inside the
Accounting module under Configuration > Disallowed Expenses Categories.

6. ❖ Then create a new Disallowed Expenses Category and fill in all the details such as Code,
Name, if it is a Car Category, enable the checkbox Car Category and company if car
category is checked that disallowed expense category must contain a car or vehicle
connected while creating expense.

7. ❖ Moreover, the Disallowed Expenses Category can be interlinked with an Expense Account
which is defined in the Chart of Accounts. For that go to Configuration > Chart of Accounts.

8. ❖ Choose one Expense Account, just click on the SETUP button

9. ❖ Here you can see an option for selecting Disallowed Expenses. Further, you can add the
defined Disallowed Expenses Category and it will be linked with the respective account.

10. ❖ Goto Products > Select one > Set Expenses Account > SAVE.

11. ❖ Goto purchase module then Orders > Purchase Orders.

12. ❖ Add the vendor and product with quantity. CONFIRM your order.

13. ❖ And create bill for the purchase order.

14. ❖ CONFIRM the bill created.

15. ❖ Under journal items tab, we will get expense account details.

16. ❖ Then goto Reporting > Disallowed Expenses report to examine all the outcomes of the
expense categories.

17. ❖ Here we will get total amount, disallowed amount with rate.

18. ❖ You can find the Disallowed Expense Category that has been defined and the one which is
being linked to the Expense Account, unfold it to see General Ledger with the Journal Items.

19. ❖ And the report will look like below after clicking general ledger.

20. ❖ We will get lot details with reserved quantity after confirmation validate the picking.

21. ❖ Select Journal Items to get details of entries.

22. ❖ Here we will get the journal entries of the expenses.

23. ❖ Select the record and here we will get the details.

24. ❖ There will be so many options to filter the entries.

25. ❖ For saving this report click on SAVE button.

26. ❖ Enter the type of the document, name, folder, tags then > EXPORT

27. ❖ From document module under Finance folder we can find the report in pdf format.

28. ❖ Click on that and we will get a pdf report like this.

29. ❖ It is possible to set disallowed expenses under vehicle, for that make sure the following
app is installed.

30. ❖ Goto Fleet module and select one vehicle.

31. ❖ Under Tax Info tab we can set start date with disallowed rate.

32. For More
Details
Check our company website for related blogs and Odoo book.
Odoo 15 Community Book
An Overview of Odoo 15 Disallowed Expenses
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videos in Odoo.
Disallowed Expenses in Odoo 15

34. Thank You