diff --git a/content/applications/finance/fiscal_localizations.rst b/content/applications/finance/fiscal_localizations.rst index c77b03e04..d90fbd618 100644 --- a/content/applications/finance/fiscal_localizations.rst +++ b/content/applications/finance/fiscal_localizations.rst @@ -59,7 +59,7 @@ available on Odoo. - :doc:`Belgium - Accounting ` - Bolivia - Accounting - :doc:`Brazilian - Accounting ` -- Canada - Accounting +- :doc:`Canada - Accounting ` - :doc:`Chile - Accounting ` - China - Accounting - :doc:`Colombia - Accounting ` @@ -134,6 +134,7 @@ available on Odoo. fiscal_localizations/austria fiscal_localizations/belgium fiscal_localizations/brazil + fiscal_localizations/canada fiscal_localizations/chile fiscal_localizations/colombia fiscal_localizations/ecuador diff --git a/content/applications/finance/fiscal_localizations/canada.rst b/content/applications/finance/fiscal_localizations/canada.rst new file mode 100644 index 000000000..4801ae0ef --- /dev/null +++ b/content/applications/finance/fiscal_localizations/canada.rst @@ -0,0 +1,311 @@ +====== +Canada +====== + +.. |COA| replace:: :abbr:`CoA (Chart of Accounts)` +.. |AR| replace:: :abbr:`AR (Accounts Receivable)` +.. |AP| replace:: :abbr:`AP (Accounts Payable)` + +The Odoo Canada localization package provides tailored features and configurations for Canadian +businesses. + +A series of videos on the subject of Accounting are available through Odoo's eLearning platform. +These videos cover how to start from scratch, set up configurations, complete common workflows, and +provide in-depth looks at some specific use cases. + +.. seealso:: + - `Odoo Tutorials: Accounting & Invoicing + `_ + - `Odoo SmartClass: Accounting `_ + +Configuration +============= + +Below are the available modules in Odoo for accounting use in Canada. + +Modules installation +-------------------- + +:ref:`Install ` the following modules to get all the features of the Canadian +localization: + +.. list-table:: + :header-rows: 1 + :widths: 25 25 50 + + * - Name + - Technical name + - Description + * - :guilabel:`Canada - Accounting` + - `l10n_ca` + - Base accounting module for Canadian localization. + * - :guilabel:`Canada - Accounting Reports` + - `l10n_ca_reports` + - Adds Canadian accounting reports. + * - :guilabel:`Canadian Checks Layout` + - `l10n_ca_check_printing` + - Enables the printing of payments on pre-printed check paper. Supports the three most common + check formats and works natively with the linked checks from `checkdepot.net + `_. + + - `Check on top: Quicken / QuickBooks standard + `_ + - `Check on middle: Peachtree standard + `_ + - `Check on bottom: ADP standard + `_ + +.. _l10n_ca/coa: + +Chart of accounts +================= + +The :doc:`chart of accounts (COA) <../accounting/get_started/chart_of_accounts>` for the Canadian +localization, in Odoo, has accounts grouped into seven main categories, with corresponding numeric +values that prefix individual journal entries: + +- **Receivable**: the balance of money (or credit) due to the business for goods or services + delivered or used, but not yet paid for by customers. |AR| is indicated by the journal code + labeled (or beginning) with :guilabel:`1`. +- **Payable**: the business's short-term obligations owed to its creditors or suppliers, which have + not yet been paid. |AP| is indicated by the journal code labeled (or beginning) with + :guilabel:`2`. +- **Equity**: the amount of money that would be returned to a company's shareholders if all of the + assets were liquidated and all of the company's debt was paid off in the case of liquidation. + Equity is indicated by the journal code labeled (or beginning) with :guilabel:`3` or + :guilabel:`9`. +- **Assets**: items listed on the balance sheet that contains economic value or have the ability to + generate cash flows in the future, such as a piece of machinery, a financial security, or a + patent. Assets are indicated by the journal code labeled (or beginning) with :guilabel:`1`. +- **Liability**: refers to a company's financial debts or obligations that arise during the course + of business operations. Liabilities are indicated by the journal code labeled (or beginning) with + :guilabel:`2`. +- **Income**: synonymous with *net income*, this is the profit a company retains after paying off + all relevant expenses from sales revenue earned. Income is indicated by the journal code labeled + (or beginning) with :guilabel:`4` or :guilabel:`6`. +- **Expenses**: the cost of operations that a company incurs to generate revenue. Expenses are + indicated by the journal code labeled (or beginning) with a :guilabel:`6`. + +.. tip:: + Predefined accounts are included in Odoo, as part of the |COA| that's installed with the Canadian + localization package. The accounts listed below are preconfigured to perform certain operations + within Odoo. It is recommended to **not** delete these accounts; however, if changes are needed, + rename the accounts instead. + + .. list-table:: + :header-rows: 1 + :stub-columns: 1 + + * - :guilabel:`Type` + - :guilabel:`Account Name` + * - :guilabel:`Current Assets` + - | :guilabel:`Bank Suspense Account` + | :guilabel:`Outstanding Receipts` + | :guilabel:`Outstanding Payments` + | :guilabel:`Liquidity Transfer` + | :guilabel:`Stock Valuation` + | :guilabel:`Stock Interim (Received)` + | :guilabel:`Stock Interim (Delivered)` + | :guilabel:`Cost of Production` + * - :guilabel:`Income` + - | :guilabel:`Foreign Exchange Gain` + | :guilabel:`Cash Difference Gain` + | :guilabel:`Cash Discount Gain` + * - :guilabel:`Expenses` + - | :guilabel:`Cash Discount Loss` + | :guilabel:`Foreign Exchange Loss` + | :guilabel:`Cash Difference Loss` + * - :guilabel:`Current Year Earnings` + - :guilabel:`Undistributed Profits/Losses` + * - :guilabel:`Receivable` + - :guilabel:`Account Receivable` + * - :guilabel:`Payable` + - :guilabel:`Account Payable` + +.. seealso:: + - :doc:`../accounting/get_started/chart_of_accounts` + - :doc:`../accounting/get_started/cheat_sheet` + +.. _l10n_ca/fiscal-positions: + +Fiscal positions +================ + +Canadian tax rates and taxable items vary by province and territory. Default fiscal positions are +automatically created when the Odoo **Accounting** application is installed. To manage or configure +additional fiscal positions, navigate to :menuselection:`Accounting --> Configuration --> Fiscal +Positions`. + +The following fiscal positions are available by default: + +- :guilabel:`Alberta (AB)` +- :guilabel:`British Colombia (BC)` +- :guilabel:`Manitoba (MB)` +- :guilabel:`New Brunswick (NB)` +- :guilabel:`Newfoundland and Labrador (NL)` +- :guilabel:`Nova Scotia (NS)` +- :guilabel:`Northwest Territories (NT)` +- :guilabel:`Nunavut (NU)` +- :guilabel:`Ontario (ON)` +- :guilabel:`Prince Edward Islands (PE)` +- :guilabel:`Quebec (QC)` +- :guilabel:`Saskatchewan (SK)` +- :guilabel:`Yukon (YT)` +- :guilabel:`International (INTL)` + +.. image:: canada/l10n-ca-fiscal-positions.png + :alt: The default fiscal positions for the Canada localization in Odoo Accounting. + +.. note:: + When considering what taxes to be applied, it is the province where the delivery occurs that + matters. Therefore, delivery is the responsibility of the vendor and is accounted for at the + customer location. + +.. example:: + - A delivery is made to a customer from another province. + Set the fiscal position on the customer's record to the province of the customer. + - A customer from another province comes to pick up products. + No fiscal position should be set on the customer's record. + - An international vendor doesn't charge any tax, but taxes are charged by the customs broker. + Set the fiscal position on the vendor's record to *International*. + - An international vendor charges provincial tax. + Set the fiscal position on the vendor's record to your position. + +.. seealso:: + :doc:`../accounting/taxes/fiscal_positions` + +.. _l10n_ca/taxes: + +Taxes +===== + +In Canada, tax rates and what is considered taxable vary by province and territory. Default *Sales* +and *Purchases* taxes are created automatically when the Odoo **Accounting** application is +installed. To manage existing or configure additional taxes, navigate to :menuselection:`Accounting +--> Configuration --> Taxes`. + +.. _l10n_ca/taxes-avatax: + +AvaTax +------ + +**Avalara AvaTax** is a cloud-based tax calculation and compliance software that integrates with +Odoo for several localizations, including Canada. Integrating AvaTax with Odoo provides real-time +and region-specific tax calculations when items are sold, purchased, and invoiced in the database. + +.. important:: + AvaTax is available for integration with databases/companies that have locations in Canada and/or + the United States. Reference the :ref:`avatax/fiscal_country` documentation for more information. + +.. seealso:: + Refer to the documentation articles below to integrate and configure an AvaTax account with an + Odoo database: + + - :doc:`AvaTax integration <../accounting/taxes/avatax>` + - :doc:`Avalara management portal <../accounting/taxes/avatax/avalara_portal>` + - :doc:`Calculate taxes with AvaTax <../accounting/taxes/avatax/avatax_use>` + - Avalara's support documents: `About AvaTax + `_ + +.. _l10n_ca/reports: + +Reports +======= + +A number of :doc:`report selections <../accounting/reporting>` are readily available for the +Canadian localization, under the :menuselection:`Accounting app --> Reporting` drop-down menu: + +- :ref:`Balance Sheet `: a "snapshot" of a company's financial position at + a specific point in time, which contains an overview of a company's assets, liabilities, and + equity. + + Be sure to select the :menuselection:`Balance sheet (CA)` option from the :icon:`fa-book` + :guilabel:`Report` filter. + + .. image:: canada/l10n-ca-balance-sheet.png + :alt: Balance sheet report selection for CA localization in Odoo. + +- :ref:`Profit & Loss `: otherwise known as a *P&L statement* or + *income statement*, provides a summary of a company's revenues, expenses, and profits/losses over + a given period of time. + + Be sure to select the :menuselection:`Profit and loss (CA)` option from the :icon:`fa-book` + :guilabel:`Report` filter. + + .. image:: canada/l10n-ca-profit-loss.png + :alt: Profit and loss report selection for CA localization in Odoo. + +- :guilabel:`Cash Flow Statement`: shows how much cash and cash equivalents a company has received + and spent in a given period. +- :ref:`Executive Summary `: an overview report that covers + the key performance indicators of a company's financial position, such as revenue, profit, and + debt. +- :ref:`Tax Report `: an official form filed for a tax authority that reports + income, expenses, and other pertinent tax information. Tax reports allow taxpayers to calculate + their tax liability, schedule tax payments, or request refunds for the overpayment of taxes. In + Odoo, the tax report can be made monthly, every two months, quarterly, every 4 months, + semi-annually, and annually. + +.. seealso:: + - :doc:`Accounting reporting <../accounting/reporting>` + - :doc:`../../essentials/search` + +.. _l10n_ca/cash-discount: + +Cash discount +============= + +Cash discounts can be configured from :menuselection:`Accounting app --> Payment Terms`. Each +payment term can be set up with a cash discount and reduced tax. + +.. seealso:: + :doc:`../accounting/customer_invoices/cash_discounts` + +Writing checks +============== + +The Canadian localization allows users to print checks for vendor payments. Be sure the *Canadian +Checks Layout* (`l10n_ca_check_printing`) module for the CA localization is :ref:`installed +`. + +To enable check printing from Odoo, navigate to :menuselection:`Accounting --> Configuration --> +Settings` and find the :guilabel:`Vendor Payments` section. From here, tick the :guilabel:`Checks` +checkbox to reveal several fields for check configuration. + +Select a :guilabel:`Check Layout` from the drop-down menu: + +- :guilabel:`Print Check (Top) - CA` +- :guilabel:`Print Check (Middle) - CA` +- :guilabel:`Print Check (Bottom) - CA` + +Next, choose whether or not to enable the :guilabel:`Multi-Pages Check Stub` checkbox. + +Optionally set a :guilabel:`Check Top Margin`, :guilabel:`Check Left Margin`, or :guilabel:`Check +Right Margin` if required. + +Tick the :guilabel:`Print Date Label` checkbox if a date label is required. + +Once all check configurations are complete, :guilabel:`Save` the settings. + +.. tip:: + Some of the check formats may require pre-printed paper from a third party vendor. + `Pre-printed checks from checkdepot.net `_ are + recommended. + +.. seealso:: + :doc:`../accounting/payments/pay_checks` + +Receive pre-authorized debits +============================= + +Pre-authorized debits are a method for receiving payments from customers, where the customer +authorizes the business to withdraw funds from their bank account on a recurring basis. This +functionality is commonly used for subscriptions, recurring invoices, and other regular payments. + +In the Odoo Canadian localization, pre-authorized debits are facilitated through an +:doc:`integration with Stripe <../payment_providers/stripe>`. + +.. seealso:: + - :doc:`Setting up payment providers <../payment_providers>` + - `Stripe's pre-authorized debit payments documentation + `_ diff --git a/content/applications/finance/fiscal_localizations/canada/l10n-ca-balance-sheet.png b/content/applications/finance/fiscal_localizations/canada/l10n-ca-balance-sheet.png new file mode 100644 index 000000000..fcf11b5d5 Binary files /dev/null and b/content/applications/finance/fiscal_localizations/canada/l10n-ca-balance-sheet.png differ diff --git a/content/applications/finance/fiscal_localizations/canada/l10n-ca-fiscal-positions.png b/content/applications/finance/fiscal_localizations/canada/l10n-ca-fiscal-positions.png new file mode 100644 index 000000000..0d5e9368d Binary files /dev/null and b/content/applications/finance/fiscal_localizations/canada/l10n-ca-fiscal-positions.png differ diff --git a/content/applications/finance/fiscal_localizations/canada/l10n-ca-profit-loss.png b/content/applications/finance/fiscal_localizations/canada/l10n-ca-profit-loss.png new file mode 100644 index 000000000..2b3c30a63 Binary files /dev/null and b/content/applications/finance/fiscal_localizations/canada/l10n-ca-profit-loss.png differ