How to Configure Accounting Localisation in Odoo 18 for Global Businesses

US company expands to UK. Accountant sets up UK subsidiary in Odoo. Uses same chart of accounts as US entity. Creates invoice to UK customer. Invoice format: USD currency, US tax labels, no VAT number field. Customer calls: "Where's VAT? This invoice doesn't comply with UK law." Accountant manually adds VAT line. Calculates 20% manually. Sends revised invoice. HMRC audit: "Your invoices don't show proper VAT breakdown." Fine: $23,000. Accountant realizes: UK requires different invoice format (VAT registration number mandatory, detailed VAT breakdown, different tax codes). Manually rebuilds chart of accounts for UK. Takes 87 hours. Gets tax codes wrong (used 20% VAT for zero-rated items). Another audit issue. Another company: Dubai subsidiary. UAE requires specific invoice format (Arabic language, TRN number, VAT-compliant layout). Accountant creates custom template in Word. Types invoice data manually. 247 invoices monthly × 15 minutes = 61.75 hours. Typo in TRN number. Government portal rejects e-invoice. Customer can't claim VAT credit. Lost customer. German subsidiary: Needs GoBD-compliant accounting (immutable journal entries, audit trail, specific date formats). Odoo standard doesn't enforce immutability. Tax authority audit: "Where's audit trail?" Company scrambles to prove compliance. Annual cost: $127K compliance fines + $87K accountant time (manual setup/corrections) + $67K lost customers (wrong invoices) + $47K audit penalties = $328K localisation chaos.

Odoo 18 Accounting Localisation fixes this: Install country-specific package (one-click). Get: Pre-configured chart of accounts (country-standard GL codes), Tax structures (VAT, GST, sales tax auto-calculated), Invoice formats (compliant templates with required fields), Legal reports (country-mandated financial statements), Language support (invoices in local language), Bank integration (connect to local banks), Government portals (e-invoicing, tax filing). UK package: VAT-compliant invoices, HMRC reports, MTD integration. UAE package: TRN field, Arabic invoices, VAT compliance. Germany: GoBD compliance, DATEV export. India: GST structure, GSTIN validation. US: State sales tax, 1099 forms. Install package → Chart of accounts auto-created → Taxes auto-configured → Invoices auto-compliant. Here's how to use Accounting Localisation in Odoo 18 so you stop losing $328K annually to compliance chaos.

What Accounting Localisation Does

Country-specific compliance: Install localisation package → Chart of accounts created → Taxes configured → Invoice formats set → Legal reports available → Government integrations connected → Automatic compliance.

Benefits of Accounting Localisation

• Automatic Compliance: Invoices, reports, taxes follow local regulations (no manual configuration)
• Electronic Invoicing: Save invoice documents in system database, retrieve when needed
• Tax Automation: Apply standard taxes to products/sales, handle withholding, credits automatically
• Multi-Country Support: Manage multiple subsidiaries with different localisations from one database
• Legal Reporting: Generate country-mandated reports (balance sheet, P&L, tax returns in required format)
• Centralized Data: All subsidiaries' data in single database, consolidated reporting
• Audit Trail: Immutable records, compliance logs (GoBD, SOX, etc.)

Step 1: View Available Localisation Packages

1. Go to Apps module
2. In search bar, type "Accounting"
3. Filter: Category = Localisation / Account Charts
4. View list of country-specific packages:
   • Australia - Accounting
   • Austria - Accounting
   • Belgium - Accounting
   • Canada - Accounting
   • France - Accounting
   • Germany - Accounting (SKR03/SKR04)
   • India - Accounting (GST)
   • United Arab Emirates - Accounting
   • United Kingdom - Accounting
   • United States - Accounting
   • ...and 100+ more countries

Step 2: Install Localisation Package

Method 1: During Company Creation

1. When creating new company, Odoo detects country
2. Auto-suggests appropriate localisation package
3. Click Install
4. Package installs automatically with company setup

Method 2: Manual Installation

1. Go to Apps
2. Search for country name (e.g., "United Kingdom")
3. Find "United Kingdom - Accounting" package
4. Click Install
5. Package installs (takes 1-2 minutes)
6. Confirmation message appears

Method 3: Via Accounting Settings

1. Go to Accounting → Configuration → Settings
2. Under Fiscal Localisation section
3. Click Fiscal Localisation dropdown
4. Select country package
5. Click Install
6. Save settings

Step 3: What Gets Installed

Chart of Accounts

• Country-standard account codes (e.g., UK: 1000-9999 range, Germany: SKR03 or SKR04)
• Pre-configured accounts:
  • Assets (bank, receivables, inventory)
  • Liabilities (payables, loans, accruals)
  • Equity (capital, retained earnings)
  • Revenue (sales, services)
  • Expenses (COGS, operating costs)
• Default accounts set (receivable, payable, revenue, expense)

Tax Structures

• UK: VAT at 20%, 5%, 0%, exempt categories
• UAE: VAT at 5%, zero-rated exports, exempt items
• India: GST (CGST, SGST, IGST), TDS, TCS
• US: State sales tax rates, nexus rules
• Germany: 19% standard, 7% reduced, reverse charge
• Taxes auto-apply based on customer location, product category

Invoice Templates

• Country-compliant formats
• Required fields included:
  • UK: VAT registration number, VAT breakdown
  • UAE: TRN (Tax Registration Number), Arabic translation option
  • Germany: Tax ID, specific invoice numbering
  • India: GSTIN, HSN/SAC codes, IGST/CGST/SGST breakdown
• Language support (invoices in local language if needed)

Legal Reports

• UK: HMRC VAT return (MTD compatible)
• UAE: VAT return for FTA portal
• India: GSTR-1, GSTR-3B, GSTR-9
• US: 1099 forms, state tax reports
• Germany: DATEV export, UStVA (advance VAT return)
• Reports generated in required format (PDF, XML, CSV)

Step 4: Configure Fiscal Year (Optional)

Most countries use Jan 1 - Dec 31. Some use different fiscal years (e.g., UK: April-March for tax purposes).

1. Go to Accounting → Configuration → Settings
2. Scroll to Fiscal Periods section
3. Enable Fiscal Years option
4. Click Save
5. Go to Accounting → Configuration → Fiscal Years
6. Click New
7. Configure:
   • Name: "Fiscal Year 2025" or "FY 2024-2025"
   • Start Date: Select start (e.g., April 1, 2024 for UK)
   • End Date: Select end (e.g., March 31, 2025)
   • Company: Select company
8. Click Save
9. Fiscal year now active

Step 5: Create Fiscal Position

Fiscal positions apply specific tax rules based on customer location, tax status. Example: EU intra-community sales (0% VAT with reverse charge), export sales (zero-rated).

1. Go to Accounting → Configuration → Fiscal Positions
2. Click New
3. Configure fiscal position:
   • Name: "EU Intra-community" or "Export Sales"
   • Detect Automatically: Enable to auto-apply based on rules
   • VAT Required: Enable if customer must have VAT number
   • Country Group: Select (e.g., "Europe" for EU sales)
   • Country: Specific country (if position applies to one country)

Tax Mapping

1. Under Tax Mapping section, click Add a line
2. Configure:
   • Tax on Product: Select original tax (e.g., "20% VAT")
   • Tax to Apply: Select replacement tax (e.g., "0% VAT Intra-EU")
3. Add multiple lines to map different taxes
4. Leave "Tax to Apply" empty to remove tax entirely

Account Mapping

1. Under Account Mapping section, click Add a line
2. Configure:
   • Account on Product: Original account (e.g., "4000 Sales")
   • Account to Use: Replacement account (e.g., "4100 Export Sales")
3. Ensures transactions post to correct GL accounts

4. Click Save

Example: EU Intra-Community Sales

Step 6: Integration with Government Portals

UK: Making Tax Digital (MTD)

1. Install UK localisation package
2. Go to Accounting → Configuration → Settings
3. Under Taxes section, find HMRC Integration
4. Click Register with HMRC
5. Authenticate with HMRC credentials
6. Generate VAT return in Odoo
7. Submit directly to HMRC (one click)

UAE: Federal Tax Authority (FTA)

1. Configure TRN (Tax Registration Number) in company settings
2. Generate VAT return from Odoo
3. Export in FTA-required format
4. Upload to FTA portal

India: GST Portal

1. Configure GSTIN in company
2. Generate GSTR-1 (sales), GSTR-3B (monthly return)
3. Export JSON file
4. Upload to GST portal

Country-Specific Examples

United Kingdom

United Arab Emirates

India

Germany

United States

Real-World Impact

FAQs