United States¶
The Odoo fiscal localization package for the United States follows the Generally Acceptable Accounting Principles (GAAP) accounting standards and rules used to prepare financial statements, as outlined by the Financial Accounting Standards Board (FASB) and adopted by the Securities and Exchange Commission (SEC).
Configuration¶
Below are the available modules in Odoo for accounting use in the United States.
Note
The modules listed below are either for reference only or are optional, as the core requirements to operate under the US fiscal localization in Odoo are already included under the default package that came installed during database initialization.
Verify the default package is in use by navigating to and under the Fiscal Localization section at the top, look for the Generic
Chart Template selection to be listed next to the Package field label. This chart
template includes the necessary settings for the US localization for the Odoo Accounting app.
- menu
- Accounting ‣ Configuration ‣ Settings ‣ Fiscal Localization
- shows
- The "Fiscal Localization" block of the Accounting settings with the "Package" field showing "Generic Chart Template".
- highlight
- The "Package" field.
- data
- Demo company "YourCompany US".
- module
- l10n_us, account
- notes
- English UI, light theme, 1440px width.
Modules installation¶
Install the following modules to get all the features of the United States localization:
Name |
Technical name |
Description |
|---|---|---|
United States - Accounting |
|
Base accounting module for United States localization. |
Note
The US accounting reports (including the Check Register and the 1099 report), the US check layouts, the NACHA payment files, the AvaTax integration and the US payroll (with the ADP export) are not available in this edition. The generic financial reports (including the cash flow statement) and the generic check printing layouts can be used instead.
Chart of accounts¶
The chart of accounts (COA) for the United States localization, in Odoo, follows the standard GAAP structure, with 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 US 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 |
See also
View, edit, and sort accounts¶
Access the Chart of Accounts dashboard in Odoo by navigating to .
From the Chart of Accounts dashboard, create new accounts by clicking the New button in the top-left corner of the dashboard and filling in the corresponding form. Search and sort through existing accounts by using specific Filters and Group By criteria, which are available in the search drop-down menu.
To filter accounts by category, click the (caret down) icon to access the drop-down menu and look under the Filters column for individual selections. Clicking on a specific category will only show accounts that match that particular filter.
To view all the available account types, remove all of the filters in the search bar, and then click the (caret down) icon to access the drop-down menu. From there, select Account Type under the Group By column heading to list all of the account types in the table.
- menu
- Accounting ‣ Configuration ‣ Chart of Accounts ‣ Group By ‣ Account Type
- shows
- The Chart of Accounts list grouped by "Account Type" (Receivable, Bank and Cash, Current Assets, … Income, Expenses) with the groups collapsed.
- highlight
- The group headers.
- data
- Demo company "YourCompany US", generic chart template.
- module
- account
- notes
- English UI, light theme, 1440px width.
Besides structure, there are other key differences in the chart of accounts in the United States, compared to other countries:
Specificity: US GAAP often requires more detailed accounts compared to some other countries. This can include separate accounts for various types of revenue, expenses, and assets, providing more granular information in financial reports.
Regulatory Requirements: In the United States, there are specific regulatory requirements set by bodies such as the SEC for publicly traded companies. These requirements may influence the structure and content of the CoA to ensure compliance with reporting standards.
Industry Practices: Certain industries in the United States may have unique accounting requirements or specialized CoA structures. For example, financial institutions often have specific accounts related to loans, investments, and interest income.
Tax Considerations: The CoA may also reflect tax considerations, such as accounts for deductible expenses, deferred tax assets, and liabilities, to ensure compliance with tax laws and facilitate tax reporting.
These differences, ultimately, should be reflected in the CoA structure itself, with the addition of new accounts, as needed, in order to meet the demands of US accounting reporting requirements.
Taxes¶
In the United States, tax rates and what is considered taxable vary by jurisdiction. Default Sales and Purchase taxes are created automatically when the Odoo Accounting application is installed. To manage existing or configure additional taxes, navigate to .
Cash discount¶
Cash discounts can be configured from . Each payment term can be set up with a cash discount and reduced tax.
See also
ACH - electronic transfers¶
Automated Clearing House (ACH) payments are a modern way to transfer funds electronically between bank accounts, replacing traditional paper-based methods. ACH payments are commonly used for direct deposits, bill payments, and business transactions.
Receive ACH payments: payment provider integration¶
ACH payments are supported by Authorize.net and Stripe payment integrations in Odoo.