How inventory operations affect valuation¶
The Inventory app maintains a real-time valuation of stock based on the physical movement of goods. Every time an operation moves goods in or out of the company’s stock, the value that came in or went out is recorded on the stock movement, and the product’s unit cost and total value are recalculated.
Примітка
This article covers inventory operations that affect the stock valuation reported in the Inventory app under the AVCO or FIFO costing methods, which are set per product category. Products using the Standard Price costing method behave differently, since their unit cost is set manually and is never recalculated by an operation.
These operations change product valuation in the Inventory app immediately, whether or not the corresponding accounting entry exists yet. The difference between the Inventory and Accounting app valuations is reported as stock variation in the Accounting app.
Див. також
Шпаргалка з оцінки: For visual examples that illustrate the impact of different Inventory configurations and operations.
Оцінка запасів: For configuration and reporting from the Accounting perspective.
Types of inventory operations¶
Stock movement¶
Most inventory operations generate stock moves, which record the movement of a given product from a source location to a destination location. The following operations increase or decrease inventory value through a stock movement:
Операція |
Valuation effect |
|---|---|
Increase |
|
Increase |
|
Increase |
|
Decrease |
|
Decrease |
|
Decrease |
|
Decrease |
Other¶
Some operations do not create a stock move, but still change the quantity or value of a product. The following corrections and updates can be made manually without a corresponding stock movement:
Операція |
Valuation change |
|---|---|
Difference between old and new cost, multiplied by quantity on hand |
|
Cost multiplied by the difference in quantity |
|
Decrease based on recent cost, updates to match actual cost |
|
Difference between old and new value for a specific move |
About stock movements¶
Most inventory operations generate stock moves, which record the movement of a given product from a source location to a destination location. Stock moves can be divided into three categories:
Inbound (outside → inventory): Adds quantity and value, and starts out with a remaining quantity equal to the quantity received.
Outbound (inventory → outside): Removes quantity and value, and decreases the remaining quantity of earlier inbound moves.
Internal (inventory → inventory): Changes stock location, but does not change the quantity owned by the company. Does not affect unit cost or total value.
Важливо
Completed operations only affect valuation when they move goods in or out of inventory.
Типи місць зберігання¶
Odoo databases use the following location types:
Location type |
In inventory? |
Typical use |
|---|---|---|
Internal |
Так |
Warehouse stock, input, quality control, packing, and output zones |
Transit |
Так |
Goods in transit between two warehouses of the same company |
Customers/Rental |
Так |
Goods being rented out to a customer |
Vendors |
Ні |
Goods not yet received from a supplier |
Customers |
Ні |
Goods delivered to a customer |
Production |
Ні |
Where raw materials are consumed, and manufactured products are created |
Inventory Loss |
Ні |
Inventory adjustments and scrap |
Virtual |
Дані відсутні |
Non-physical locations for structure and organization, should not hold stock |
Example
Receiving 10 units from the vendor location into an internal location would increase valuation.
Moving those same 10 units from the input zone to a shelf would not affect valuation, because the product moves between internal locations and does not enter or leave stock.
Delivering those units to a customer location would decrease valuation, because the goods leave stock and are no longer owned by the company.
Tracked values¶
Value is recorded on the stock moves, and inbound moves also record the remaining quantity and value:
Value: The value of the units that entered or left the company’s stock through the move.
Remaining Quantity: The quantity of the units that entered the company’s stock through the move and are still in stock.
Remaining Value: The value of the units that entered the company’s stock through the move and are still in stock.
Reported values¶
Each product has two key reporting figures calculated using the value from stock moves:
Total Value: The total value of goods on hand. Sums the Remaining Value of inbound moves that still have a Remaining Quantity.
Unit Cost: The unit cost of a product. Calculated based on the costing method set for the product group.
Stock movement operations¶
Receipts¶
A validated receipt moves goods from the vendor location into stock. Its value is the quantity received multiplied by the unit price on the source purchase order line, converted to the company’s currency. When no purchase order is involved, the product’s current cost is used instead.
Additional costs attached to a receipt, such as freight or duties, raise the value of goods already received without changing their quantity.
Див. також
Finished goods¶
Finished goods move from the production location into stock, which adds value.
The value of the finished good includes the cost of the components consumed, valued by their own costing methods, plus the labor cost of the work centers and employees involved. Because labor is added on top of the components, finished goods usually raise total inventory value: consumed component value is returned to inventory as part of the finished good, plus the cost of the work performed. To record production costs, configure a Cost of Production account.
Example
A manufacturing order consumes three components valued at $78.00, $180.00, and $20.00, and records $200.00 of labor. The finished good enters stock with a value of $478.00.
Customer returns¶
A return brings goods back from the customer location into stock, so it increases value. When the return is created from the original delivery, the returned goods are valued at the unit cost at which they left, effectively reversing the delivery rather than revaluing the goods at today’s cost.
Deliveries¶
A validated delivery moves goods from stock to the customer location. The quantity is derived from the delivery order, and the unit cost is calculated according to the costing method.
Component consumption¶
Components consumed by a manufacturing order are moved from inventory to the production location, and their value is removed at the cost determined by their own costing method. That value is included in the finished good, as described above.
Примітка
Components sent to a subcontractor remain company-owned: the subcontracting location is an internal location, so shipping components there does not change inventory value.
The finished good arrives through a receipt, which is where value changes. Its value combines the components consumed by the subcontractor and the price of the subcontracting service on the purchase order.
Vendor returns¶
Returning goods to a vendor moves them from stock back to the vendor location, and removes their value on the same basis as any other outbound move, using the selected costing method. For granular visibility into purchasing costs, enable valuation by lots/serial numbers.
Scrap¶
Scrapping a product decreases inventory value, following the same costing rules as any other outbound move.
Див. також
Other operations¶
Several inventory operations change quantity or value without creating a stock move:
Updating product costs¶
Manually changing the cost of a product revalues the quantity currently on hand. The value increases or decreases based on the difference between the old cost and the new cost, multiplied by the quantity on hand. The quantity itself does not change.
Корегування складу¶
Discrepancies between the recorded quantity and counted quantity can be reconciled through inventory adjustments. The difference is applied as a move to or from a virtual Inventory Loss location, which is outside stock, so the adjustment changes inventory value as well as quantity. Adjustments increase or decrease value based on the current unit cost of the product:
A counted quantity higher than expected produces an inbound move and increases inventory value.
A counted quantity lower than expected produces an outbound move and decreases inventory value.
Див. також
Negative stock¶
When goods are sold before their receipt has been recorded, stock goes negative and there is no inbound move for the outbound move to draw from. Odoo values the outbound move at the last known cost of the product. The negative stock value is included in stock variation in the Accounting app.
The negative value is resolved once the receipt is recorded. If the units that arrive are acquired at a different price, Odoo modifies the value of the outbound move to match the actual cost.
Adjusting the value of a move¶
When a move was valued incorrectly at the time of the operation, the value recorded on the completed move can be corrected using the Adjust Valuation action in the Moves Analysis report. The correction takes a new value and a description explaining the reason, and applies to that move alone.
Звітність¶
Stock movements and related valuation impacts can be found in the Moves Analysis and Stock report in the Inventory app.
Див. також
Moves Analysis¶
The Moves Analysis report lists moves with their source location, destination location, quantity, Value, Remaining Quantity, and Remaining Value. Dividing a move’s value by its quantity gives the unit value that was applied to it.
Use this report to investigate the details for a particular operation, e.g., what a delivery was valued at, how much of a receipt is still in stock, or what a manufacturing order added. The value of an individual move can be corrected through this report, as described in Adjusting the value of a move.
Звіт про запаси¶
The Звіт про запаси lists products with the quantity on hand. It also displays Unit Cost, and Total Value, which can be clicked for more details. The value of stock at an earlier date can be viewed using the Inventory at Date option.
Важливо
The default Stock report view calculates values across the entire company, even when product stock is spread across multiple warehouses. To view the inventory valuation for a specific warehouse, select the warehouse using the Warehouses filter in the side panel.