documentation/content/applications/finance/fiscal_localizations/united_arab_emirates.rst

====================
United Arab Emirates
====================

.. _uae/installation:

Installation
============

:ref:`Install <general/install>` the following modules to get all the features of the **United Arab
Emirates** localization:

.. list-table::
   :header-rows: 1

   * - Name
     - Technical name
     - Description
   * - :guilabel:`United Arab Emirates - Accounting`
     - ``l10n_ae``
     - Default :doc:`fiscal localization package </applications/finance/fiscal_localizations>`.
       Includes all accounts, taxes, and reports.
   * - :guilabel:`U.A.E. - Payroll`
     - ``l10n_ae_hr_payroll``
     - Includes all rules, calculations, and salary structures.
   * - :guilabel:`U.A.E. - Payroll with Accounting`
     - ``l10n_ae_hr_payroll_account``
     - Includes all accounts related to the payroll module.
   * - :guilabel:`United Arab Emirates - Point of Sale`
     - ``l10n_ae_pos``
     - Includes the UAE-compliant POS receipt.

.. image:: united_arab_emirates/l10n-ae-modules.png
   :align: center
   :alt: Select the modules to install.

Chart of accounts
=================

Go to :menuselection:`Accounting --> Configuration --> Chart of Accounts` to view all default
accounts available for the UAE localization package. You can filter by :guilabel:`Code` using the
numbers on the far left or by clicking on :menuselection:`Group By --> Account Type`. You can
:guilabel:`Enable`/:guilabel:`Disable` reconciliation or **configure** specific accounts according
to your needs.

.. important::
   - Always keep at least one **receivable account** and one **payable account** active.
   - It is also advised to **keep the accounts below active**, as they are used either as transitory
     accounts by Odoo or are specific to the **UAE localization package**.

     .. list-table::
        :header-rows: 1

        * - Code
          - Account Name
          - Type
        * - 102011
          - Accounts Receivable
          - Receivable
        * - 102012
          - Accounts Receivable (POS)
          - Receivable
        * - 201002
          - Payables
          - Payable
        * - 101004
          - Bank
          - Bank and Cash
        * - 105001
          - Cash
          - Bank and Cash
        * - 100001
          - Liquidity Transfer
          - Current Assets
        * - 101002
          - Outstanding Receipts
          - Current Assets
        * - 101003
          - Outstanding Payments
          - Current Assets
        * - 104041
          - VAT Input
          - Current Assets
        * - 100103
          - VAT Receivable
          - Non-current Assets
        * - 101001
          - Bank Suspense Account
          - Current Liabilities
        * - 201017
          - VAT Output
          - Current Liabilities
        * - 202001
          - End of Service Provision
          - Current Liabilities
        * - 202003
          - VAT Payable
          - Non-current Liabilities
        * - 999999
          - Undistributed Profits/Losses
          - Current Year Earnings
        * - 400003
          - Basic Salary
          - Expenses
        * - 400004
          - Housing Allowance
          - Expenses
        * - 400005
          - Transportation Allowance
          - Expenses
        * - 400008
          - End of Service Indemnity
          - Expenses

Taxes
=====

To access your taxes, go to :menuselection:`Accounting --> Configuration --> Taxes`.
Activate/deactivate, or :doc:`configure </applications/finance/accounting/taxes/>` the
taxes relevant to your business by clicking on them. Remember to only set tax accounts on the **5%**
tax group, as other groups do not need closing. To do so, enable the :doc:`developer mode
<../../general/developer_mode>` and go to :menuselection:`Configuration --> Tax Groups`. Then, set a
:guilabel:`Tax current account (payable)`, :guilabel:`Tax current account (receivable)`, and an
:guilabel:`Advance Tax payment account` for the **5%** group.

.. note::
   The :abbr:`RCM (Reverse Charge Mechanism)` is supported by Odoo.

.. image:: united_arab_emirates/uae-localization-taxes.png
   :align: center
   :alt: Preview of the UAE localization package's taxes.

Currency exchange rates
=======================

To update the currency exchange rates, go to :menuselection:`Accounting --> Configuration -->
Settings --> Currencies`. Click on the update button (:guilabel:`🗘`) found next to the
:guilabel:`Next Run` field.

To launch the update automatically at set intervals, change the :guilabel:`Interval` from
:guilabel:`Manually` to the desired frequency.

.. note::
   By default, the UAE Central Bank exchange rates web service is used. Several other providers are
   available under the :guilabel:`Service` field.

.. _uae/payroll:

Payroll
=======

The :guilabel:`UAE - Payroll` module creates the necessary **salary rules** in the Payroll app in
compliance with the UAE rules and regulations. The salary rules are linked to the corresponding
accounts in the **chart of accounts**.

.. image:: united_arab_emirates/uae-localization-salary-rules.png
   :align: center
   :alt: The UAE Employee Payroll Structure.

Salary rules
------------

To apply these rules to an employee's contract, go to :menuselection:`Payroll --> Contracts -->
Contracts` and select the employee's contract. In the :guilabel:`Salary Structure Type` field,
select :guilabel:`UAE Employee`.

.. image:: united_arab_emirates/uae-localization-salary-structure.png
   :align: center
   :alt: Select the Salary Structure Type to apply to the contract.

Under the :guilabel:`Salary Information` tab, you can find details such as the:

- :guilabel:`Wage`;
- :guilabel:`Housing Allowance`;
- :guilabel:`Transportation Allowance`;
- :guilabel:`Other Allowances`;
- :guilabel:`Number of Days`: used to calculate the :ref:`end of service provision
  <uae-end-of-service-provision>`.

.. note::
   - **Leave deductions** are calculated using a salary rule linked to the **unpaid leave** time-off
     type;
   - Any other deductions or reimbursements are made *manually* using other inputs;
   - **Overtimes** are added *manually* by going to :menuselection:`Work Entries --> Work Entries`;
   - **Salary attachments** are generated by going to :menuselection:`Contracts -->
     Salary Attachments`. Then, :guilabel:`Create` an attachment and select the :guilabel:`Employee`
     and the :guilabel:`Type (Attachment of Salary, Assignment of Salary, Child Support)`.

.. tip::
   To prevent a rule from appearing on a paycheck, go to :menuselection:`Payroll --> Configuration
   --> Rules`. Click on :guilabel:`UAE Employee Payroll Structure`, select the rule to hide, and
   uncheck :guilabel:`Appears on Payslip`.

.. _uae-end-of-service-provision:

End of service provision
------------------------

The provision is defined as the total monthly allowance *divided* by 30 and then *multiplied* by the
number of days set in the field :guilabel:`Number of days` at the bottom of a contract's form.

The provision is then calculated via a salary rule associated with two accounts: the **End Of
Service Indemnity (Expense account)** and the **End of Service Provision (Non-current Liabilities
account)**. The latter is used to pay off the **end of service amount** by settling it with the
**payables account**.

.. note::
   The end of service amount is calculated based on the gross salary and the start and end dates of
   the employee’s contract.

Invoices
--------

The UAE localization package allows the generation of invoices in English, Arabic, or both. The
localization also includes a line to display the **VAT amount** per line.