Key Takeaways

✓Automatic exchange rates fetched daily from European Central Bank

✓Forex Gain/Loss accounts auto-post when rates change between invoice and payment

✓Indian GST pre-configured: 5%, 12%, 18%, 28% rates with GSTR-1/GSTR-3B reports

✓HSN/SAC codes configurable at product or category level

✓E-Invoicing integration: IRN and QR Code stamped on PDF automatically

Quick Answer: The "Global-Local" Challenge

For modern SMBs, the world is flat. You might buy raw materials in USD, sell finished goods in EUR, and file your GST returns in India. This "Global-Local" duality creates a massive accounting headache. If your ERP isn't configured correctly, you face two risks: Forex Losses (losing money on exchange rate fluctuations without realizing it) and Compliance Penalties (filing incorrect GST returns). Odoo handles both beautifully—but only if you flip the right switches.

Part 1: Setting Up Multi-Currency

Stop using Excel to convert USD to your local currency. Odoo does it live.

Activate Multi-Currency

Go to Accounting → Configuration → Settings

Under "Currencies" section, check Multi-Currencies

Click Save

Automate Exchange Rates

Odoo can fetch daily rates from the European Central Bank or other providers.

In Settings menu, enable "Automatic Currency Rates"

Select your provider (e.g., European Central Bank)

Set the Interval to Daily

Result: Every morning at 1 AM, Odoo fetches the latest rates and adjusts your Unrealized Gain/Loss accounts automatically.

Configure Forex Gain/Loss Accounts

Tell Odoo where to book profit or loss when exchange rates change between invoicing and payment.

Go to Accounting → Configuration → Journals

Find your Exchange Difference Journal

Set Gain Account (e.g., 720000) and Loss Account (e.g., 720001)

Part 2: Setting Up Indian GST (Compliance Automation)

Odoo comes pre-configured with standard GST rates (5%, 12%, 18%, 28%) and handles complex compliance rules.

Install the Localization Package

Go to Apps and search for "India - Accounting"

Install the module

This installs: Standard Indian Chart of Accounts (COA) and all necessary GST reports (GSTR-1, GSTR-3B)

Configure HSN/SAC Codes

GST requires products and services to be classified with HSN (Goods) or SAC (Services) codes.

Go to Inventory → Products

Edit each product and set the HSN/SAC code under the Accounting tab

💡 Pro Tip: Configure this on the Product Category to apply the code to hundreds of items at once.

Implement E-Invoicing (If Applicable)

E-Invoicing is mandatory for large taxpayers. Odoo integrates directly with government portals.

Enable E-Invoicing feature in Fiscal Localization settings

Enter your GSP credentials (access keys from government portal)

Workflow: When you click "Confirm" on an invoice, Odoo sends the JSON to the government, gets the IRN (Invoice Reference Number) and QR Code, and stamps it on the PDF instantly.

GST Rate	Typical Products/Services	Odoo Status
5%	Essential goods, basic food items	✓ Pre-configured
12%	Processed food, standard goods	✓ Pre-configured
18%	Most services, standard products	✓ Pre-configured
28%	Luxury items, sin goods	✓ Pre-configured

Is your GST setup audit-ready?

Frequently Asked Questions

Does Odoo automatically calculate exchange rate differences?

Yes. When you reconcile a payment (e.g., received $900 for a $1,000 invoice), Odoo checks the exchange rate on the invoice date vs. payment date. It automatically posts a journal entry for the "Exchange Difference" to balance your books.

How do I handle GST on "Reverse Charge" (RCM)?

For services like Transport (GTA) or Legal Fees, you pay the tax. On the Vendor Bill, check the "Reverse Charge" box. Odoo will book the liability to your output tax account and the credit to your input tax account automatically.

Can I file GSTR-1 directly from Odoo?

Yes. Odoo generates the JSON file required for GSTR-1. You simply download it from the "GST Return" report and upload it to the GST portal. You do not need a third-party tool like ClearTax.

What is the India - Accounting localization module?

It's a pre-built Odoo module that installs the standard Indian Chart of Accounts, all GST tax rates (5%, 12%, 18%, 28%), and compliance reports (GSTR-1, GSTR-3B). It handles CGST, SGST, IGST splits automatically based on transaction type.

How does E-Invoicing work in Odoo?

When you confirm an invoice, Odoo sends the invoice data as JSON to the government portal. The portal returns an IRN (Invoice Reference Number) and QR Code. Odoo automatically stamps these on your PDF invoice—all in one click.

Conclusion: Automation is Compliance

Managing multi-currency and GST manually is a recipe for disaster.

By configuring Odoo's automatic exchange rates and Fiscal Positions, you turn a complex compliance burden into a background process.

Is Your GST Setup Audit-Ready?

Don't wait for a notice to find out. Let Braincuber's CPA-certified Odoo experts review your tax configuration.

Secure your compliance today.

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