Guide on Setting Up Germany Localization in Odoo18

For German businesses, Odoo 18’s ERP systems require localization to comply with tax, accounting, and billing laws This guide provides a detailed walkthrough of Germany localization, covering configurations, legal requirements and best practices.

Proper localization is an investment in your business’s long-term success in Germany You can dedicate your attention to growth and strategic development with your Odoo ERP operating efficiently and legally. So, let’s begin the localization process.

Localization for Germany in Odoo18

Before localizing Odoo18 for the German Market, understanding the main attributes that come with Germany localization is paramount:

• German Chart of Accounts (SKR03 & SKR04): Both are Standardized accounting structures that are domestically utilized in Germany.

• VAT & Tax Compliance: Germany has a multi-tier VAT system (19%, 7%, 0%) with strict reporting requirements, making it imperative that taxes are set and reported correctly.

• SEPA Payment Integration: is an account service that allows a customer’s bank to carry out direct debits and credit transfers in compliance with SEPA.

• GoBD Compliance: Digital bookkeeping and invoicing are done using business software that ensures the GoBD compliant Germany tax regulations.

• E-Invoicing (XRechnung/ZUGFeRD): is a form of electronic invoicing necessary for business with government agencies.

Businesses can achieve these features to ensure configurations with ease

How to Configure in Odoo18

Install the Germany Localization Module

To set up the localization of Germany in Odoo, you have to install the Germany Localization Module from the Odoo Apps Store.

Go to the Apps section in your Odoo dashboard.

• Type in Germany Localization in the search bar.
• Click on Install to set up country-specific features like tax provisions and accounting templates.

German Chart of Accounts Configuration 

German accounting uses two standard accounts’ plans: SKR03 and SKR04. Choose the one that fits to your type of business. 

• Move to Accounting > Configuration > Chart of Accounts.
• For service-based businesses, use SKR03. For businesses involving manufacturing and trade, use SKR04.
• Verify that all accounts are assigned to appropriate tax mapping.

Turn On German Invoicing & E-Invoicing

All German businesses have to follow GoBD rules for a company’s digital record keeping. Moreover, public sector transactions need e-invoicing (XRechnung/ZUGFeRD) format as well.

•  Go to Invoicing > Configuration.
•  Enable Electronic Invoicing (XRechnung or ZUGFeRD).
•  Set up required invoice fields (Steuernummer, USt-IdNr, IBAN, BIC).

Set Up SEPA Payments for Germany

The Single Euro Payments Area (SEPA) is a European-wide payment system for direct debits and credit transfer payment schemes.

• Go to Accounting > Payment Methods.
• Switch on SEPA Direct Debit and SEPA Credit Transfer.
• Insert company IBAN and BIC on invoices and payment forms.

Set Up Fiscal Positions & Legal Statement

Fiscal position enables the business to enforce a specific tax rule based on the customer location.

• Navigate to Accounting > Fiscal Positions.
• Establish rules for intra-community transactions (client from EU) and export sales.
• Take care of validation of USt-IdNr for intra community transactions compliance.

Germany Localization in Odoo 18 is particularly important for businesses in Germany. Companies can set up the German Chart of Accounts, VAT, SEPA payments, and e-invoicing so that these interfaces automate compliance. Doing these configurations properly will further improve efficiency, minimize compliance gaps, and enhance overall accuracy of financials in Odoo18.

Contact Bassam Infotech today for a personalized consultation and discover how Bassam infotech can help you as a Most trusted Odoo Partner in the USA and achieve optimal Odoo18 performance in Germany.