Odoo 18 Enterprise Book: Accounting

28. Fiscal Position

In Odoo 18 Accounting, fiscal positions let you adapt taxes and accounts automatically whenever business is conducted in a jurisdiction with rules that differ from your own. You configure them from Accounting ▸ Configuration ▸ Fiscal Positions, where a list of existing fiscal positions appears with their names and associated companies.

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To create one, click New and assign a clear label.

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Several automation options are available. Activating Detect Automatically tells Odoo to apply the fiscal position whenever the delivery address matches the chosen Country or Country Group; you can additionally require that the partner have a VAT number by ticking VAT Required. The Foreign Tax ID field stores your own tax registration for that territory.

Under Tax Mapping, you define substitutions: specify the original tax in Tax on Product and the replacement in Tax to Apply.

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The Account Mapping tab works the same way for ledger accounts, letting you switch to region‑specific accounts when needed.

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If you turn on Use AvaTax API, an AvaTax tab appears where you choose an invoice account, a refund account, and any legal notes that must be printed on documents generated under this fiscal position.

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Global settings that influence fiscal positions are found in Accounting ▸ Settings. In the Taxes section, set your home Fiscal Country.

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In the Fiscal Period section, specify the last day of your financial year so Odoo can automatically open new periods; enable Fiscal Years if you operate with periods longer or shorter than 12 months. Finally, use Invoicing Switch Threshold to declare a date after which draft invoices remain in the Invoicing and do not post to the general ledger until they are validated.

Once you activate the Fiscal Years from the Settings menu, you will get an option to manage the Fiscal Years under the Configuration menu.

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Clicking the New button will open a window to configure the details of the new fiscal year.

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You can mention the Name, Start Date, End Date, and Company of the fiscal year in the given fields.

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