What is Fiscal Policy?
Fiscal policy means the use of taxation and public expenditure by the government for stabilization or growth of the economy. When the government decides on the goods and services it purchases, the transfer payments it distributes, or the taxes it collects, it is engaging in fiscal policy. It is generally focused on the effect of changes in the government budget on the overall economy. The purpose to define such a policy is to balance the effect of modified tax rates and public spending. For instance, the government may try and simulate a slow-growing economy by increased spending.
Now Lets’ see How to Use Fiscal Position in Odoo:
Odoo Fiscal Position’ is more useful at the same time you are working with multi companies / multi countries / multi states environment and you have multi taxes system. Now you can arranged taxes either in products or products categories. Odoo is one of the important accounting features – ‘Fiscal Position’ this feature helps in mapping taxes and accounts with their relative taxes and accounts as per countries or groups of countries. Such several taxes will be applied in sales orders and invoices.
Suppose you have one product with sales tax 15.00% but as per Indian accounting standard whenever you want to apply 14.00% instead of 15.00%. The simple solution is here:
>>Firstly you have to install the Accounting module in your database.
>>Now Activate the developer mode from the Setting menu.
>>Go to Accounting -> Configuration -> Accounting -> Fiscal Positions.
Now you can create a new fiscal position:
Now you can set a name for the fiscal position. At that time you can add item into ‘tax on product’ and ‘tax to apply’ under tax mapping field.
Now go to Sales > Products > and choose one product.
At that time you can views that customer taxes is tax 15%. Such this is the default tax applicable to all customers except those who have a different fiscal position. At that time you have noticed that the customer tax is specified as tax 15.00%
Let’s take one example, Now you can create a Sale order for that customer.
Go to Sales -> Quotations -> click on Create button.
At the same time entering items, you can observe that tax is automatically added to the column. The tax applied here is default taxes configured in products.
Now you can set fiscal policy to another customer in customer form. To do so, go to
Configure the fiscal position. eg: ‘Fiscal position for Inter-State’ and click on the Save button.
Now Let’s see at the same time creating the order for this customer.
At the same time you select the customer, the ‘fiscal position’ automatically changed into ‘Inter-State’ . correspondingly the taxes is changes.
In this article, you can see the various tax applied for the same product in both cases. Such this how the fiscal position works.
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