When you create a new company, default settings and values are applied automatically in the company details. What influences the default settings?

Question

Options

• ALocal currency
• BLicense
• CLocalization
• DChart of accounts template

• A
  5% (3)
• B
  14% (8)
• C
  72% (42)
• D
  9% (5)

Explanation

Localization (C) is correct because, in ERP systems like Odoo, selecting a localization package (a country/region-specific configuration) is what triggers the automatic application of default settings - including tax rules, fiscal positions, and accounting configurations tailored to that region.

• A (Local currency) is wrong because currency is a result of localization, not the driver of defaults - it gets set as part of the localization package, not the other way around.
• B (License) is wrong because the license controls which features or modules you can access, not what default values are applied to a new company.
• D (Chart of accounts template) is wrong because the chart of accounts template is itself installed by the localization - it's a downstream effect, not the cause.

Memory tip: Think "LOCalization sets LOCal defaults" - the localization package is the bundle that carries all region-specific configuration, so it's the single input that shapes everything else.

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