Canada¶

The Odoo Canada localization package provides tailored features and configurations for Canadian businesses.

Configuration¶

Below are the available modules in Odoo for accounting use in Canada.

Modules installation¶

Install the following modules to get all the features of the Canadian localization:

Name	Technical name	Description
Canada - Accounting	`l10n_ca`	Base accounting module for Canadian localization.

Note

The Canadian versions of the financial reports (Balance sheet (CA), Profit and loss (CA)), the Canadian check layouts and the AvaTax integration are not available in this edition. The generic financial reports and the generic check printing layouts can be used instead.

Chart of accounts¶

The chart of accounts (COA) 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 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 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 3 or 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 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 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 4 or 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 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.

Type	Account Name
Current Assets	Bank Suspense Account Outstanding Receipts Outstanding Payments Liquidity Transfer Stock Valuation Stock Interim (Received) Stock Interim (Delivered) Cost of Production
Income	Foreign Exchange Gain Cash Difference Gain Cash Discount Gain
Expenses	Cash Discount Loss Foreign Exchange Loss Cash Difference Loss
Current Year Earnings	Undistributed Profits/Losses
Receivable	Account Receivable
Payable	Account Payable

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 Accounting ‣ Configuration ‣ Fiscal Positions.

The following fiscal positions are available by default:

Alberta (AB)
British Columbia (BC)
Manitoba (MB)
New Brunswick (NB)
Newfoundland and Labrador (NL)
Nova Scotia (NS)
Northwest Territories (NT)
Nunavut (NU)
Ontario (ON)
Prince Edward Islands (PE)
Quebec (QC)
Saskatchewan (SK)
Yukon (YT)
International (INTL)

screenshot: finance-fl-canada-fiscal-positions

menu: Accounting ‣ Configuration ‣ Fiscal Positions
shows: The Fiscal Positions list of the Canadian localization with the 13 provincial/territorial positions (Alberta (AB) … Yukon (YT)) and "International (INTL)".
data: Demo company "YourCompany CA", Canadian localization installed.
module: l10n_ca
notes: English UI, light theme, 1440px width.

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.

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 Accounting ‣ Configuration ‣ Taxes.

Cash discount¶

Cash discounts can be configured from Accounting app ‣ Payment Terms. Each payment term can be set up with a cash discount and reduced tax.