Accounting in Odoo for Latvian companies

Accounting, VAT, payments, assets and reporting in one system, with Latvian localisation.

November 11, 2026 by

ET team

Odoo brings accounting, sales, purchasing, inventory, projects and electronic documents together in one system. Transactions share the same database, giving accountants access to related documents, payment status and current financial figures without entering the same information twice.

This overview covers Odoo 19 Enterprise Accounting with the official Latvian localisation modules: l10n_lv, l10n_lv_reports and l10n_lv_tax_report. Additional standard applications and integrations, including Sales, Inventory, Peppol, Intrastat and SEPA, are enabled as needed. The features available in a particular database depend on the installed components and configuration.

1. Core accounting features

Double-entry bookkeeping. Automatic journal entries from source documents, manual entries and control over posting status.
Sales and accounts receivable. Customer invoices, credit notes, down payments, partial payments, outstanding balances and payment due dates.
Purchases and accounts payable. Vendor bills, refunds, input VAT, outstanding liabilities and payment preparation.
VAT and fiscal positions. Tax rates and treatments for domestic, EU, export and import transactions, applied according to the configured tax rules.
Bank and cash transactions. Receipts, payments, internal transfers and reconciliation with bank transactions.
Multi-currency accounting. Foreign-currency accounts and documents, exchange differences and revaluation of open items.
Fixed assets. Asset recognition from purchases, depreciation models and entries, value adjustments and disposal.
Deferred revenue and expenses. Allocation across accounting periods with scheduled journal entries.
Analytic accounting. Allocation of costs and revenue by project, business activity, department and other analytic dimensions.
Multiple companies. Separate accounting for each company in one database, with different localisations for companies in different countries.

2. Master data and configuration

Latvian chart of accounts. A standard account structure that can be adapted to the company's accounting policy, including account groups and properties.
Taxes and tax groups. VAT rates and tax tags used to calculate the VAT return and its annexes.
Customers and suppliers. Company details, registration and VAT numbers, bank accounts, payment terms and fiscal positions.
Products and services. Product records and categories, income and expense accounts, and default taxes.
Accounting journals. Sales, purchase, bank, cash and miscellaneous journals with document numbering sequences.
Currencies and exchange rates. Accounting and transaction currencies, dated exchange rates and revaluation settings.
Assets and depreciation models. Asset groups, asset and accumulated depreciation accounts, depreciation methods and useful lives.
Analytic plans and accounts. Financial analysis dimensions, allocations and budgets where the relevant features are enabled.
Financial periods and controls. Financial year settings, lock dates and user access rights.

3. Source documents and accounting transactions

Customer Invoice. Issue, send and print invoices, recognise output VAT and record receivables.
Customer Credit Note. Adjust or reverse sales with the corresponding accounting entries.
Vendor Bill. Record supplier invoices, input VAT and accounts payable.
Vendor Credit Note. Adjust purchase documents and supplier balances.
Payment. Register incoming and outgoing payments, full or partial settlements, advances and open balances.
Bank transaction or statement. Import or enter bank movements, then reconcile them with the relevant documents.
Journal Entry. Record accruals, adjustments, transfers and other transactions outside the sales and purchase document flows.
Asset. Link an asset to its acquisition, set depreciation parameters, adjust its value and record a sale or write-off.
Deferred revenue and expenses. Set up allocations and schedules for recognition across periods.
Down payment invoices. Manage customer down payments through the standard Sales workflow and advance balances in Accounting. The VAT treatment of advances must be configured for the company's requirements.

4. Periodic procedures and automation

Automatic journal entries. Generate accounting entries when invoices, payments and other accounting documents are posted, according to their configuration.
Bank reconciliation. Match transactions using reconciliation rules and automatic matching suggestions.
Depreciation. Generate depreciation schedules and post scheduled depreciation entries.
Foreign-currency revaluation. Calculate and record unrealised exchange differences on open items.
Revenue and expense recognition. Use schedules for deferred revenue and expenses.
Overdue receivables. Review aged balances and organise customer payment reminders.
Period closing. Review transactions, check consistency and apply tax and accounting lock dates.
Data import and export. Import master data and documents in bulk and export tables using Odoo's available tools.
Document traceability. Keep attachments, document discussions, recorded changes and access controls linked to accounting records.

5. Standard financial and management reports

Interactive reports use the underlying journal entries. Depending on the report, users can filter by date and company, drill down to individual entries and export the results in common formats.

Balance Sheet. Assets, liabilities and equity.
Profit and Loss. Revenue, expenses and financial results.
Trial Balance. Account movements and debit and credit balances.
General Ledger. Journal entries for selected accounts and periods.
Journal and transaction reports. Detailed movements by journal and document.
Partner Ledger. Transactions and balances for each customer or supplier.
Aged Receivable and Aged Payable. Outstanding amounts grouped by ageing interval.
Cash Flow Statement. Cash receipts and payments classified by cash flow category.
Tax Report. Taxable amounts and tax values based on tax tags.
Additional analysis. Account and invoice analysis, analytic dimensions, depreciation schedules and exchange difference reviews, where the corresponding components are available.

6. Latvian statutory reporting

Financial statements

The official l10n_lv_reports module provides Latvian Balance Sheet and Profit and Loss report formats based on the chart of accounts and the reporting period.

VAT reporting

PVN return. VAT figures calculated from tax settings and accounting entries.
PVN 1-I. Input VAT details for domestic purchases and imports.
PVN 1-II. Details of acquisitions within the European Union.
PVN 1-III. Details of domestic sales and certain other sales and export transactions.
PVN 2. Information on relevant sales transactions within the EU.
XML export. Preparation of the VAT return and annexes as an XML file for subsequent submission through the applicable government system.

Reporting on EU transactions

Odoo provides tools for the EC Sales List and Intrastat for relevant intra-EU transactions. Availability and applicability depend on additional modules, transaction types and the required data.

Before going live, the configuration must be checked against current State Revenue Service (VID) requirements. This includes tax codes and tags, annexes and the resulting XML. Exporting an XML file does not automatically submit a return to VID EDS. A complete annual report and all other VID forms should not be assumed to be included without checking the agreed solution scope.

7. Electronic documents and external systems

EN 16931 and UBL electronic invoices. Generate structured electronic invoices in supported formats.
Peppol. Send invoices and credit notes and receive electronic vendor bills after connection and participant registration.
Email and PDF. Send invoices to customers by email and retain attachments and printable documents.
Bank statements. Import bank transactions in supported formats, including CAMT.053 and CSV. Supported formats and fields depend on the bank.
SEPA and ISO 20022. Generate batch payment files for upload to online banking when the standard module is installed and the journal is configured.
Bank synchronisation. Connect through supported banking data providers, subject to the availability of the particular bank and service.
Excel and CSV. Import and export master data and tables and process accounting data in bulk.
Sales, purchasing and inventory integration. Share documents and automate accounting flows when the corresponding applications are installed.
APIs and external systems. Use Odoo's available integration interfaces. Connecting a specific external system requires configuration or integration development.

8. Controls, security and shared information

Access rights. Set permissions for accountants, managers and other users by company and function.
History and supporting documents. Retain files and links between source documents and journal entries, together with available audit trail information.
Transparent balances. Drill down from a report to a transaction and its related source document.
Multiple legal entities. Each company maintains its own accounting records and uses the appropriate country localisation.
Shared management information. Give managers access to relevant financial analysis according to their permissions.

9. What needs to be configured during implementation

The official modules provide a foundation, but they do not replace configuration based on the company's accounting policy. A typical implementation includes:

Chart of accounts and analytics. Agree the company's working chart of accounts, settlement accounts and analytic dimensions.
Tax scenarios. Test advances, mixed VAT rates, reverse charge, cross-border transactions and tax restrictions.
Banking and electronic invoices. Configure import and export formats, Peppol, partner details and controls over sending and receiving documents.
Migration and testing. Transfer opening balances, outstanding invoices and assets, then verify representative transactions and reports.
Required reporting formats. Validate the PVN return, annexes, XML and financial statements against the company's actual requirements.

Scope of standard functionality

The following areas require a separate scope agreement: payroll and payroll tax calculations; a complete annual reporting package and submission to EDS; direct integrations with VID, Latvija.gov.lv, specific banks and EDI providers; non-standard offsetting documents and advance VAT workflows; and integrations with external ERP, 1C and specialist systems. Installing the Latvian localisation package alone should not be taken to include these scenarios automatically.

Examples of end-to-end workflows

Sale and customer payment: customer invoice → VAT recognition → payment → bank reconciliation → revenue and receivables reports.
Purchase and supplier payment: vendor bill → input VAT → payment → bank reconciliation → inclusion in the PVN return.
Equipment acquisition: vendor bill → recognition of the asset cost → asset record → depreciation schedule and entries.
Foreign-currency transaction: invoice or payment in a foreign currency → conversion into the accounting currency → exchange difference → financial reporting.

What this means for your business

Odoo 19 supports daily bookkeeping, payment and balance management, fixed assets, foreign-currency transactions, and financial and tax reporting in one system. The Latvian localisation provides the country-specific accounting foundation. ELMI helps configure that foundation for your company's processes.

Documentation behind this overview

Prepared for ELMI customers · Odoo 19 Enterprise · 11 November 2026

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