If the answer is no)
This frequently happens in older Odoo versions, because tax allocations are used to adjust tax rates or account assignments for countries or regions. In the case of a national business partner, this is unnecessary. Still, the tax rates may be taken directly from the product or the revenue, respectively expense accounts, from the material group for the initial account assignment. The tax allocation to the customer will remain empty.
In this case, you need to create a tax allocation „domestic Business Partner“ as in the previous paragraph and update the appropriate partner data records.
The big advantage
The advantage of this approach is its convenience and simplicity, given the announced reverse adjustment. You just empty the tax allocations, and everything will back to normal.
The big disadvantage
However, this approach also has a significant disadvantage: only the tax rates are “adjusted,“ the sales prices will remain unaffected.
In other words, this version is not feasible if sales prices have to be adjusted, and if external systems are connected to Odoo or products are synchronized. If this is the case, the only option left is Solution 1, which has to be adjusted according to the overall situation.
Step 4: Journals
Both the “Default Debit Account“ and the “Default Credit Account“ have to be set to the new revenue account for the standard tax rate in all sales and purchasing ledgers.
This is necessary only, however, if invoices or corrections of invoices (incoming or outgoing) are entered without a product reference. In this case, Odoo will pre-assign via the ledger’s standard setting, eliminating at least one potential source of error.
Step 5: All NON-domestic Fiscal Positions / Tax Allocations
The 16% and, respectively, 5% tax rates should not suddenly appear on quotations/orders or invoices for EU or international deliveries. To prevent this, all Fiscal Positions need to be extended with a tax mapping. For this purpose, I simply use a filter “Tax Mapping is set“ (see screenshot):
Now, I can click through the records one by one and add the new tax rates under the existing mappings, which will look like this:
Just suppose that everything is pretty straightforward, and you have now reached the point where the purchase prices also have to be adjusted in your system.
These are the options you will have available in various combinations:
1) Fiscal Position
A Fiscal Position may also be adjusted at the vendor level. Alternatively, the changes made by adjusting the “domestic business partner” assignment will take effect. However, this will only affect the tax rates in the requests for quotations, purchase orders and purchase invoices, and not the prices.
2) Product-related purchase prices
Should you get into a situation where you need to adjust purchasing prices, all Odoo versions <13 have the option “Vendor Pricelists“ in their configuration of the Purchase Module. I fit is activated, there is an additional item on the main menu “Purchase,“ where you will find a list of all vendors and products as well as their scaled and purchase prices. The list may also be exported, and via an Excel file you can adjust and re-import the prices.
In Odoo 13, this list is already integrated, and may be found under the tab “Configuration” in your menu.
3) Master agreements
For master agreements, things are more complicated. I do not want to discuss whether this may happen in real life, just to offer a technical solution if you come across that issue.
Master agreements may, of course, also be exported, updated, and re-imported in Excel. Odoo will file the contract according to the data in the header and list the line positions underneath. Please take care not to change the resulting Excel list under any circumstances. Otherwise, you will create a “new contract database”!
The Excel list will look something like this, with the highlighted area symbolizing exactly one contract:
Date of Implementation
When would be the best time to implement these changes? – It is getting more and more difficult to find a standard answer to this question because there are various depending features. If there are connected systems, you also need to factor in the time for synchronization.
Preparation is probably the most critical issue. Mass updates in Odoo take their time, especially when products need to be revised as well. Here, Odoo 13 users have a slight advantage since the internal processing time has been significantly improved by changing the ORM model, i.e., the internal interface to the database. In the earlier versions, the processing time may have increased exponentially in relation to the number of transactions! It is, therefore, helpful to split the Excel files and upload them in several parts when dealing with large amounts of data. This will save a lot of time!
f you dare to access the database, you may, of course, prepare and execute relevant SQL scripts. Although this may be incomparably faster, it also involves higher risks, and requires access rights to the database. Due to Odoo’s excellent rights system this should not be standard.
Business queries and questions on usage
What will happen with ongoing processes, such as partial deliveries, deliveries of previously outstanding products, etc.? How do I adjust depreciation and fixed assets? These and many other questions cannot be discussed in this blog.
Our experienced consultants will be happy to help you with your specific questions. Alternatively, your tax consultant will also be available for advice.
In this blog, we only wanted to provide some technical suggestions for implementing the VAT change. They are, of course, somewhat simplified and presented solely based on Odoo’s demo data. For further questions, please contact your Odoo Partner or us.