Fiscal Localization in Odoo 17 Accounting

The Odoo ERP module offers tax localization packages, which include preconfigured taxes, legal declarations, and tax positions on a database. With these modules, users from different countries can localize ERP goods according to their own tax regulations, simplifying tax automation. Odoo ERP incorporates localization functionality into modules such as Odoo 17 Accounting. These modules simplify electronic invoice storage and apply taxes as well as manage customer tax, withholding taxes, credits, and book payment information. In addition to facilitating the integration of accounting transactions, fiscal localization also makes it easier for reports to be developed and data to be centralized.

Activation of Fiscal Localization in Odoo Accounting

A fiscal localization package is a set of specialized modules that are tailored to the needs of specific countries in order to satisfy your fiscal management needs. The accounting system is pre-set with pre-defined taxes, fiscal positions, account charts, legal statements, certificate setups, and other features. If you create a database in less than one nation, Odoo automatically installs a fiscal localization package for your business. In the ‘Settings’ window, activate the ‘Fiscal Localization’ option under the ‘Configuration’ menu. Select the desired package and save the configuration.

Fiscal Year Configuration

Using the ‘Settings’ tab in Odoo 17 Accounting, you can also enable the ‘Fiscal Year’ functionality.

Select ‘Fiscal Years’ from the ‘Configuration’ menu’s dropdown list after activating Fiscal Localization in Odoo accounting module.

Using the New button on the fiscal year dashboard window, organizations can quickly design fiscal years.

The ‘Name’ field needs to be filled in with the name of the fiscal year, followed by the ‘Start Date’ and ‘End Date’. Select ‘Company’ and click on the Save icon to save the data. Then, move on to the next step.

Creating Fiscal Positions in Odoo

The use of fiscal positions based on a nation simplifies tax administration, allowing users to use transaction accounts and automate manual tax adaptations. Partner roles can be created manually or automatically, and partners may apply for them. You can acquire accounting fiscal positions through the ‘Fiscal Positions’ window on the ‘Configuration’ tab of the application.

Selecting the ‘New’ icon will create a new fiscal position. Each fiscal position is represented by a separate entry in the List view.

In Odoo 17, the user can configure taxes by activating the ‘Use TaxCloud API’ option and entering their fiscal position name in the ‘Fiscal Position’ field. With the ‘Use Avatax API,’ they can also calculate taxes. If users check the ‘Detect Automatically’ box and select their firm from the ‘Company’ field, the report will automatically identify the firm’s fiscal position.

In the ‘Foreign Tax ID’ field, users can enter the tax ID matching their company’s fiscal situation. It is also possible to include the nation group in the field for the delivery ‘Country’ if the country group is the same as the delivery ‘Country.’ In the ZIP Range field, the user can enter the range count, and the Federal States field determines the states according to the selected country. The ‘Add a line’ option in the ‘Tax Mapping’ tab area allows us to specify both the tax on a product and the tax to apply. Furthermore, users are able to create product accounts under the Account Mapping section. The data must then be manually saved after the Fiscal Position information has been applied.