Odoo is an open source erp software which supports multi-currency/Multi-company environment. When clients/customers/companies are operating in a Multiple countries/States where Tax policies varies in terms of their operation, Fiscal Position feature is really needed. This feature helps in mapping taxes and accounts with their relative taxes and accounts as per countries or group of countries involved in the operations.
Configuration of Fiscal Position ?
In order to make use of Fiscal Position,user need to load Accounts module first. User can also install the related accounting package as per the country they are operating. Once installed, user will need Technical Features access which can be found at Access Rights in the User’s screen. The next step is to configure the Fiscal Positions under Accounting –> Configuration –> Taxes –> Fiscal Positions. As stated earlier,user can configure Taxes and Accounts as per business operations.
Example: We have a product “X” on which generally 5% sales Tax is applied but as per Indian accounting standards sale tax applied is 14% and not 5%. So, in such scenario,we will have to configure new Fiscal Position where we will input 5% Sales Tax in Tax Source column and Sales Tax 14% will be inserted into Replacement Tax column under Tax Mapping headers. Now choose a Partner/Customer Agrolait who is operating in India. We will have to assign newly created Fiscal Position to this user which can be located under Accounting page of the Customers screen.
Now in order to test it,create new Sales/Customer Invoice for above customer Agrolait and insert “Product X” in invoice line. You can see the Source Tax place is taken by Replacement Tax which we have configured in Fiscal Positions. Similarly we can map accounts also in Fiscal Positions. This is how Fiscal Position feature works in Odoo.