United Arab Emirates

Installation

Install the following modules to get all the features of the United Arab Emirates localization:

Name

Technical name

Description

United Arab Emirates - Accounting

l10n_ae

Default fiscal localization package. Includes all accounts, taxes, and reports.

U.A.E. - Payroll

l10n_ae_hr_payroll

Includes all rules, calculations, and salary structures.

U.A.E. - Payroll with Accounting

l10n_ae_hr_payroll_account

Includes all accounts related to the payroll module.

United Arab Emirates - Point of Sale

l10n_ae_pos

Includes the UAE-compliant POS receipt.

Select the modules to install.

Chart of accounts

Go to Accounting ‣ Configuration ‣ Chart of Accounts to view all default accounts available for the UAE localization package. You can filter by Code using the numbers on the far left or by clicking on Group By ‣ Account Type. You can Enable/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 SotaERP or are specific to the UAE localization package.

    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 Accounting ‣ Configuration ‣ Taxes. Activate/deactivate, or configure 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 developer mode and go to Configuration ‣ Tax Groups. Then, set a Tax current account (payable), Tax current account (receivable), and an Advance Tax payment account for the 5% group.

Note

The RCM is supported by SotaERP.

Preview of the UAE localization package's taxes.

Currency exchange rates

To update the currency exchange rates, go to Accounting ‣ Configuration ‣ Settings ‣ Currencies. Click on the update button (🗘) found next to the Next Run field.

To launch the update automatically at set intervals, change the Interval from 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 Service field.

Payroll

The 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.

The UAE Employee Payroll Structure.

Salary rules

To apply these rules to an employee’s contract, go to Payroll ‣ Contracts ‣ Contracts and select the employee’s contract. In the Salary Structure Type field, select UAE Employee.

Select the Salary Structure Type to apply to the contract.

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

  • Wage;

  • Housing Allowance;

  • Transportation Allowance;

  • Other Allowances;

  • Number of Days: used to calculate the 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 Work Entries ‣ Work Entries;

  • Salary attachments are generated by going to Contracts ‣ Salary Attachments. Then, Create an attachment and select the Employee and the Type (Attachment of Salary, Assignment of Salary, Child Support).

Tip

To prevent a rule from appearing on a paycheck, go to Payroll ‣ Configuration ‣ Rules. Click on UAE Employee Payroll Structure, select the rule to hide, and uncheck Appears on Payslip.

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 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.