Odoo 14 Fiscal Localization

- Odoo

Odoo is an open source software that can be used effectively in all countries/regions. In order to provide effective support to users all over the world, Odoo has launched a localization function. In this blog, you will know how companies can use Odoo localization and its benefits.

Odoo 14 localization allows users to localize according to the laws and systems of their countries/regions. When ERP deals with accounting and related financial transactions, localization is very useful and very important. Due to the different tax systems in different countries, the localized ERP will automatically calculate the tax for that particular country. Tax management, tax and journal entries are easy to manage with this localization.

Odoo Accounting installs the appropriate fiscal localization package for your company according to the country selected when creating the database. The Odoo Accounting documentation lists the full functionality of Odoo 14 accounting module, which connects with Odoo and our apps like sales, purchases, inventory, subscriptions, etc.

Steps involved to manage Fiscal Position using localization :

  1. Install Odoo Accounting.
  2. Go to Accounting module to configure fiscal position.
  3. Go to Accounting > Configuration > Settings to configure localization in the settings. The label indicating the financial country/region. Change the country by selecting the country from the drop-down menu.
  4. Go to Accounting > Configuration > Accounting > Fiscal Position to Create a new Fiscal Position. You can select the Fiscal position as same as the country name.
  5. Go to Accounting> Configuration>Accounting> Tax. This feature helps users manage tax positions by selecting a country from the list.

Odoo makes it easy for users to set up and manage locations. This helps to automatically install business-level language packs. The country/region selected when the database was created. After selecting the country/region, a software package will be installed that allows users to use pre-configured tax credits, tax positions, chart of accounts, legal reports etc in the database.

Few benefits of Odoo 14 Fiscal Localization :

  • You can add new taxes and impose standard taxes on products and sales to manage withholding taxes, book payments, government-set product prices, corporate and customer taxes, B2B taxes and credits.
  • You can create multiple reports based on the same localization with improved tax and accounting features.
  • Combining domestic and foreign tax reports is also available, which facilitates the preparation of reports.