diff --git a/accounting/others/inventory.rst b/accounting/others/inventory.rst index 4e067542e..008c2a76f 100644 --- a/accounting/others/inventory.rst +++ b/accounting/others/inventory.rst @@ -6,6 +6,6 @@ Inventory :titlesonly: inventory/avg_price_valuation - What is the impact of standard price, average price, FIFO and LIFO? - How is periodic inventory valuation working? - What is the impact of perpetual inventory valuation? + ../../../inventory/management/reporting/valuation_methods_continental + ../../../inventory/management/reporting/valuation_methods_anglo_saxon + diff --git a/inventory/management/reporting/valuation_methods_anglo_saxon.rst b/inventory/management/reporting/valuation_methods_anglo_saxon.rst index bd27292ad..b1c39c333 100644 --- a/inventory/management/reporting/valuation_methods_anglo_saxon.rst +++ b/inventory/management/reporting/valuation_methods_anglo_saxon.rst @@ -4,9 +4,6 @@ How to do an inventory valuation? (Anglo-Saxon Accounting) ========================================================== -Costing Method -============== - Every year your inventory valuation has to be recorded in your balance sheet. This implies two main choices: @@ -16,6 +13,8 @@ balance sheet. This implies two main choices: - the way you record the inventory value into your books (periodic vs. Perpetual). +Costing Method +============== .. rst-class:: alternatives doc-aside Standard Price @@ -91,7 +90,7 @@ Average Price - 12 - +4*€16 - €144 - * - Deliver 10 Products [#average-removal]_ + * - Deliver 10 Products - €12 - 2 - | -10*€12 @@ -103,18 +102,20 @@ Average Price - +2*€6 - €36 - The **Average Price** method recomputes the cost price as a - receipt order has been processed, based on prices defined in - tied purchase orders. This method is mainly justified in case - of huge purchase price variations and is quite unusual due to - its operational complexity. Your actually need a software like - Odoo to keep this cost up-to-date. + The **Average Price** method recomputes the cost price as a receipt order + has been processed, based on prices defined in tied purchase orders: + FORMULA (see here attached) - This method is dedicated to advanced users. It requires well - established business processes because the order in which you - process receipt orders matters in the cost computation. Moreover - if you mistakenly process such an order, there is no way to - reset the cost price at its initial value. + The average cost does not change when products leave the warehouse. + + From an accounting point of view, this method is mainly justified in + case of huge purchase price variations and is quite unusual due to its + operational complexity. Your actually need a software like Odoo to + easily keep this cost up-to-date. + + This method is dedicated to advanced users. It requires well established + business processes because the order in which you process receipt orders + matters in the cost computation. FIFO .. rst-class:: values-table @@ -156,19 +157,18 @@ FIFO - +2*€6 - €44 - For **Real Price** (FIFO, LIFO, FEFO, etc), the costing is - further refined by the removal strategy set on the warehouse - location or product's internal category. The default strategy - is FIFO. With such method, your inventory value is computed - from the real cost of your stored products (cfr. Quantitative - Valuation) and not from the cost price shown in the product - form. Whenever you ship items, the cost price is reset to the - cost of the last item(s) shipped. This cost price is used to - value any product not received from a purchase order (e.g. - inventory adjustments). + For **Real Price** (FIFO, LIFO, FEFO, etc), the costing is further + refined by the removal strategy set on the warehouse location + or product's internal category. The default strategy is FIFO. With + such method, your inventory value is computed from the real cost + of your stored products (cfr. Quantitative Valuation) and not from + the cost price shown in the product form. Whenever you ship items, + the cost price is reset to the cost of the last item(s) shipped. + This cost price is used to value any product not received from a + purchase order (e.g. inventory adjustments). - Such a method is advised if you manage all your workflow into - Odoo (Sales, Purchases, Inventory). It suits any kind of users. + FIFO is advised if you manage all your workflow into Odoo (Sales, + Purchases, Inventory). It suits any kind of users. LIFO (not accepted in IFRS) .. rst-class:: values-table @@ -210,6 +210,18 @@ LIFO (not accepted in IFRS) - +2*€6 - €32 + For **Real Price** (FIFO, LIFO, FEFO, etc), the costing is further + refined by the removal strategy set on the warehouse location + or product's internal category. The default strategy is FIFO. + With such method, your inventory value is computed from the + real cost of your stored products (cfr. Quantitative Valuation) + and not from the cost price shown in the product form. Whenever + you ship items, the cost price is reset to the cost of the last + item(s) shipped. This cost price is used to value any product + not received from a purchase order (e.g. inventory adjustments). + + LIFO is not permitted outside the United States. + Odoo allows any method. The default one is **Standard Price**. To change it, check **Use a 'Fixed', 'Real' or 'Average' price costing method** in Purchase settings. Then set the costing @@ -319,8 +331,6 @@ Let's take the case of a reseller. .. placeholder -.. [#average-removal] products leaving the stock have no impact on the average price. - .. raw:: html
@@ -349,3 +359,8 @@ Let's take the case of a reseller. - Price Difference: to set in product's internal category or in product form as a specific replacement value +.. seealso:: + + * :doc:`../../routes/strategies/removal` + * :doc:`../../../accounting/others/inventory/avg_price_valuation` + * :doc:`../../routes/costing/landed_costs` \ No newline at end of file diff --git a/inventory/management/reporting/valuation_methods_continental.rst b/inventory/management/reporting/valuation_methods_continental.rst index e17ef95a3..bee9abddb 100644 --- a/inventory/management/reporting/valuation_methods_continental.rst +++ b/inventory/management/reporting/valuation_methods_continental.rst @@ -4,9 +4,6 @@ How to do an inventory valuation? (Continental Accounting) ========================================================== -Costing Method -============== - Every year your inventory valuation has to be recorded in your balance sheet. This implies two main choices: @@ -16,6 +13,9 @@ balance sheet. This implies two main choices: - the way you record the inventory value into your books (periodic vs. Perpetual). +Costing Method +============== + .. rst-class:: alternatives doc-aside Standard Price @@ -91,7 +91,7 @@ Average Price - 12 - +4*€16 - €144 - * - Deliver 10 Products [#average-removal]_ + * - Deliver 10 Products - €12 - 2 - | -10*€12 @@ -103,18 +103,20 @@ Average Price - +2*€6 - €36 - The **Average Price** method recomputes the cost price as a - receipt order has been processed, based on prices defined in - tied purchase orders. This method is mainly justified in case - of huge purchase price variations and is quite unusual due to - its operational complexity. Your actually need a software like - Odoo to keep this cost up-to-date. + The **Average Price** method recomputes the cost price as a receipt order + has been processed, based on prices defined in tied purchase orders: + FORMULA (see here attached) - This method is dedicated to advanced users. It requires well - established business processes because the order in which you - process receipt orders matters in the cost computation. Moreover - if you mistakenly process such an order, there is no way to - reset the cost price at its initial value. + The average cost does not change when products leave the warehouse. + + From an accounting point of view, this method is mainly justified in + case of huge purchase price variations and is quite unusual due to its + operational complexity. Your actually need a software like Odoo to + easily keep this cost up-to-date. + + This method is dedicated to advanced users. It requires well established + business processes because the order in which you process receipt orders + matters in the cost computation. FIFO .. rst-class:: values-table @@ -156,19 +158,18 @@ FIFO - +2*€6 - €44 - For **Real Price** (FIFO, LIFO, FEFO, etc), the costing is - further refined by the removal strategy set on the warehouse - location or product's internal category. The default strategy - is FIFO. With such method, your inventory value is computed - from the real cost of your stored products (cfr. Quantitative - Valuation) and not from the cost price shown in the product - form. Whenever you ship items, the cost price is reset to the - cost of the last item(s) shipped. This cost price is used to - value any product not received from a purchase order (e.g. - inventory adjustments). + For **Real Price** (FIFO, LIFO, FEFO, etc), the costing is further + refined by the removal strategy set on the warehouse location + or product's internal category. The default strategy is FIFO. With + such method, your inventory value is computed from the real cost + of your stored products (cfr. Quantitative Valuation) and not from + the cost price shown in the product form. Whenever you ship items, + the cost price is reset to the cost of the last item(s) shipped. + This cost price is used to value any product not received from a + purchase order (e.g. inventory adjustments). - Such a method is advised if you manage all your workflow into - Odoo (Sales, Purchases, Inventory). It suits any kind of users. + FIFO is advised if you manage all your workflow into Odoo (Sales, + Purchases, Inventory). It suits any kind of users. LIFO (not accepted in IFRS) .. rst-class:: values-table @@ -210,6 +211,18 @@ LIFO (not accepted in IFRS) - +2*€6 - €32 + For **Real Price** (FIFO, LIFO, FEFO, etc), the costing is further + refined by the removal strategy set on the warehouse location + or product's internal category. The default strategy is FIFO. + With such method, your inventory value is computed from the + real cost of your stored products (cfr. Quantitative Valuation) + and not from the cost price shown in the product form. Whenever + you ship items, the cost price is reset to the cost of the last + item(s) shipped. This cost price is used to value any product + not received from a purchase order (e.g. inventory adjustments). + + LIFO is not permitted outside the United States. + Odoo allows any method. The default one is **Standard Price**. To change it, check **Use a 'Fixed', 'Real' or 'Average' price costing method** in Purchase settings. Then set the costing @@ -295,7 +308,8 @@ Profit&Loss section to your assets. Expenses: Inventory Variations X ===================================== ===== ====== - If the stock value decreased, he makes it upside down. + If the stock value decreased, the **Inventory** account is credited + and te **Inventory Variations** debited. .. raw:: html @@ -317,8 +331,6 @@ Let's take the case of a reseller. .. placeholder -.. [#average-removal] products leaving the stock have no impact on the average price. - .. raw:: html
@@ -338,3 +350,9 @@ Let's take the case of a reseller. category - Inventory: to set as Stock Valuation Account in product's internal category + +.. seealso:: + + * :doc:`../../routes/strategies/removal` + * :doc:`../../../accounting/others/inventory/avg_price_valuation` + * :doc:`../../routes/costing/landed_costs` \ No newline at end of file diff --git a/inventory/routes/costing.rst b/inventory/routes/costing.rst index 25f9cdda7..c7327b5d0 100644 --- a/inventory/routes/costing.rst +++ b/inventory/routes/costing.rst @@ -5,5 +5,4 @@ Product Costing .. toctree:: :titlesonly: - What costing method should you use? (standard, average, fifo) costing/landed_costs \ No newline at end of file diff --git a/inventory/routes/costing/fifo_lifo.rst b/inventory/routes/costing/fifo_lifo.rst deleted file mode 100644 index 80cd52abe..000000000 --- a/inventory/routes/costing/fifo_lifo.rst +++ /dev/null @@ -1,3 +0,0 @@ -========================================================== -How to setup a perpetual FIFO or LIFO inventory valuation? -========================================================== \ No newline at end of file diff --git a/inventory/routes/strategies/removal.rst b/inventory/routes/strategies/removal.rst index 2c9495624..97a48b795 100644 --- a/inventory/routes/strategies/removal.rst +++ b/inventory/routes/strategies/removal.rst @@ -161,3 +161,8 @@ removal dates. .. image:: media/removal11.png :align: center + +.. seealso:: + + * :doc:`../../management/reporting/valuation_methods_continental` + * :doc:`../../management/reporting/valuation_methods_anglo_saxon`