December 2025   ​|   ​Finance & Accounting

In version 18, Odoo has taken a significant step forward in the development of its consolidation function. While the previous separate consolidation app has now been fully integrated into the accounting app, the question arises: What is behind this innovation and how does consolidation in Odoo v18 work in detail?

This article highlights the basic concepts, the challenges involved in implementation, and the differences between purely management-oriented and legal group consolidation.

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Cornerstones of Odoo v18 consolidation

Consolidation in Odoo v18 is based on several key principles that promise both flexibility and simplified handling.

No separate group accounts

Instead of dedicated corporate accounts, the focus is on direct integration into existing accounting structures.

Mapping of charts of accounts

Each company chart of accounts can be individually mapped to the chart of accounts of all other companies. This option allows for flexible assignment and facilitates consolidated evaluation.

Aggregation of multiple companies

By selecting and combining several companies, users can retrieve cumulative values – each in the currency of the currently active company. This enables a uniform view of the results without the need for manual conversions.

Elimination of intercompany transactions

​Unlike traditional elimination entries, intercompany transactions are “omitted” in Odoo v18. Instead of complex entry corrections, these items are automatically hidden, which is intended to simplify the process.​

Reporting auf Basis lokaler GuV/Bilanz-Reports

​Consolidated reporting is generated directly from local income statements and balance sheets. Thanks to intelligent account mapping, data from all companies can be consolidated to provide a uniform view.

Challenges and limitations

As tempting as these innovations may seem at first glance, there are still some critical points to consider—especially in the context of legal corporate consolidation.

Currency differences and equity​

Currency differences are not reported in equity. This means that, from a consolidated perspective—especially when foreign currency companies are included—there is never complete consistency between assets and liabilities.

Risks associated with eliminating intercompany transactions​​

​The principle of “omission” can lead to unintended side effects. For example, in intercompany transactions that contain sales tax posting lines, these could also be incorrectly hidden by elimination—especially if they were posted in the same journal, even though their external nature prevents exclusion. Similarly, currency differences are often not taken into account in consolidation.

Lack of genuine corporate structure

Since mapping is performed directly on local income statements and balance sheets, no “true” consolidated balance sheet is created. The structure of consolidated reports often differs significantly from individual company reports, which can make comparison and analysis difficult.

No adjustment entries at group level

​Another point of criticism is the lack of the option to make corrective entries or adjustments at the level of the entire group.

Note: The problems described in points 3 and 4 could theoretically be resolved by introducing a fictitious “group company” that serves as a central point of adjustment.

Management consolidation: Significant progress

From a management consolidation perspective, Odoo v18 offers significant advantages.

Transparency and ease of care

• Direct mapping in the local charts of accounts represents an improved alternative to the previous approach.

• It enables a more transparent presentation and is much easier to maintain—a decisive advantage in a dynamic business environment.

• Although the system offers the option of mapping all companies completely to each other, in practice only one main currency is usually relevant—possibly supplemented by a second one.

• In many cases, this excess capacity is more than sufficient and makes daily work easier.
  
  

Conclusion

For companies that are primarily interested in a consolidated management view, Odoo v18 represents a clear step forward. It offers the necessary flexibility and transparency to display financial key figures in a uniform currency and on a cumulative basis—provided that there are no legal consolidation requirements. However, this is perfectly adequate for earnings figures and balance sheet key figures.

For more advanced tasks related to legal consolidation, we recommend specialized software or the legal consolidation solution from syscoon.