diff --git a/content/applications/inventory_and_mrp/inventory/management/reporting/inventory_valuation_config.rst b/content/applications/inventory_and_mrp/inventory/management/reporting/inventory_valuation_config.rst index d36baae49..efd2953bc 100644 --- a/content/applications/inventory_and_mrp/inventory/management/reporting/inventory_valuation_config.rst +++ b/content/applications/inventory_and_mrp/inventory/management/reporting/inventory_valuation_config.rst @@ -2,7 +2,7 @@ Inventory valuation configuration ================================= -.. _inventory/inventory_valuation_config: +.. _inventory/management/inventory_valuation_config: All of a company's stock on-hand contributes to the valuation of its inventory. That value should be reflected in the company's accounting records to accurately show the value of the company and diff --git a/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation.rst b/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation.rst index 48d5a506e..63a4d8e56 100644 --- a/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation.rst +++ b/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation.rst @@ -9,11 +9,17 @@ value. In Odoo, this process can be conducted manually— by warehouse employees physically counting the products— or automatically through the database. -.. seealso:: - :ref:`Inventory valuation configuration ` +Automatic inventory valuation +============================= -Understand the basics of inventory valuation -============================================ +To use Odoo to automatically generate a trail of inventory valuation entries, first navigate to the +:menuselection:`Product Categories` list by going to :menuselection:`Inventory app --> Configuration +--> Product Categories` and select the desired product category. On the form, set the +:guilabel:`Inventory Valuation` as :guilabel:`Automated` and the :guilabel:`Costing Method` to any +of the three options. + +.. seealso:: + :ref:`Set up inventory valuation ` In order to understand how moving products in and out of stock affects the company's overall value, consider the following product and stock moves scenario below. @@ -21,87 +27,87 @@ consider the following product and stock moves scenario below. Receive a product ----------------- -For example, consider an physical product, a simple *table*, which is categorized as `Office -Furniture` in the product form's :guilabel:`Product Category` field. - -Navigate to the the product category itself by going to :menuselection:`Inventory app --> -Configuration --> Product Categories`, and on the form, set the :guilabel:`Costing Method` as `First -In First Out (FIFO)` and the :guilabel:`Inventory Valuation` field as `Automated`. +To track the value of incoming products, such as a simple *table*, configure the product category on +the the product itself. To get there, navigate to :menuselection:`Inventory app --> Products --> +Products` and click the desired product. On the product form, click the :guilabel:`➡️ (right arrow)` +icon beside the :guilabel:`Product Category` field, which opens an internal link to edit the product +category. Next, set the :guilabel:`Costing Method` as :guilabel:`First In First Out (FIFO)` and +:guilabel:`Inventory Valuation` as :guilabel:`Automated`. .. tip:: - Alternatively access the :guilabel:`Product Categories` dashboard by clicking on the - :guilabel:`internal link` arrow on the individual product's form, by hovering over the - :guilabel:`Product Category` field. + Alternatively access the :guilabel:`Product Categories` dashboard by navigating to + :menuselection:`Inventory app --> Configuration --> Product Categories` and select the desired + product category. Next, assume 10 tables are purchased at a price of $10.00, each. The :abbr:`PO (Purchase Order)` for those tables will show the subtotal of the purchase as $100, plus any additional costs or taxes. .. image:: using_inventory_valuation/purchase-order.png :align: center - :alt: Purchase order with 10 tables products valued at $10 each. + :alt: Purchase order with 10 tables products valued at $10.00 each. -After selecting :guilabel:`Validate` on the :abbr:`PO (Purchase Order)`, use the -:guilabel:`Valuation` smart button to view how the value of inventory was impacted. - -.. image:: using_inventory_valuation/valuation-smart-button.png - :align: center - :alt: Valuation smart button on a receipt. +After selecting :guilabel:`Validate` on the :abbr:`PO (Purchase Order)`, the :guilabel:`Valuation` +smart button is enabled. Clicking on this button displays a report showing how the inventory +valuation for the table was affected by this purchase. .. important:: - :ref:`Developer mode ` must be turned on to see the *Valuation* smart button. + :ref:`Developer mode ` **must** be turned on to see the :guilabel:`Valuation` + smart button. .. tip:: The :doc:`consignment ` feature allows ownership to items in stock. Thus, products owned by other companies are not accounted for in the host company's inventory valuation. -The :guilabel:`Stock Valuation` dashboard then displays valuation of all products in the shipment, -along with their quantities and valuation. In the example of 10 tables being purchased, the -:guilabel:`Total Value` column of the dashboard would display a calculated valuation of $100. - -.. image:: using_inventory_valuation/stock-valuation-product.png +.. image:: using_inventory_valuation/valuation-smart-button.png :align: center - :alt: Stock valuation page depicting the products within a shipment. + :alt: See Valuation smart button on a receipt, with Developer mode enabled. -In Odoo, automatic inventory valuation records are also recorded in the *Accounting* app. To access -these accounting entries, navigate to :menuselection:`Accounting --> Journal Entries`, and look for -inventory valuation entries with the `STJ` prefix in the :guilabel:`Journal` and :guilabel:`Number` -columns, respectively. - -.. image:: using_inventory_valuation/inventory-valuation-entry.png - :align: center - :alt: Accounting entry for the inventory valuation of 10 tables. +For a comprehensive dashboard that includes the inventory valuation of all product shipments, +inventory adjustments, and warehouse operations, refer to the :ref:`stock valuation report +`. Deliver a product ----------------- In the same logic, when a table is shipped to a customer and leaves the warehouse, the stock valuation decreases. The :guilabel:`Valuation` smart button on the :abbr:`DO (Delivery Order)`, -likewise, displays the stock valuation record as it does on a :abbr:`PO (Purchase Order)` +likewise, displays the stock valuation record as it does on a :abbr:`PO (Purchase Order)`. .. image:: using_inventory_valuation/decreased-stock-valuation.png :align: center :alt: Decreased stock valuation after a product is shipped. -The inventory valuation report ------------------------------- +.. _inventory/management/reporting/valuation-report: -To view the current value of all products in the warehouse, go to :menuselection:`Inventory app --> -Reporting --> Inventory Valuation`. The records in the table are organized by product, and selecting -a product's drop-down menu displays detailed records with the :guilabel:`Date`, -:guilabel:`Quantity`, and :guilabel:`Total Value` of the inventory. +Inventory valuation report +========================== + +To view the current value of all products in the warehouse, first turn on :ref:`Developer mode +` and navigate to :menuselection:`Inventory app --> Reporting --> Valuation`. The +:guilabel:`Stock Valuation` dashboard displays detailed records of products with the +:guilabel:`Date`, :guilabel:`Quantity`, :guilabel:`Unit Value`, and :guilabel:`Total Value` of the +inventory. + +.. important:: + :ref:`Developer mode ` **must** be enabled to see the :guilabel:`Valuation` + option under :guilabel:`Reporting`. .. image:: using_inventory_valuation/inventory-valuation-products.png :align: center :alt: Inventory valuation report showing multiple products. -.. note:: - The :guilabel:`Inventory At Date` button, located in the top-left corner of the :guilabel:`Stock - Valuation` dashboard, shows the inventory valuation of products available during a prior - specified date. +The :guilabel:`Valuation At Date` button, located in the top-left corner of the :guilabel:`Stock +Valuation` page, reveals a pop-up window. In this pop-up, the inventory valuation of products +available during a prior specified date can be seen and selected. + +.. tip:: + View a detailed record of a product's inventory value, stock move, and on-hand stock by selecting + the teal :guilabel:`➡️ (right arrow)` button to the right of the :guilabel:`Reference` column + value. Update product unit price -~~~~~~~~~~~~~~~~~~~~~~~~~ +------------------------- For any company: lead times, supply chain failures, and other risk factors can contribute to invisible costs. Although Odoo attempts to accurately represent the stock value, *manual valuation* @@ -109,22 +115,60 @@ serves as an additional tool to update the unit price of products. .. important:: Manual valuation is intended for products that can be purchased and received for a cost greater - than 0, or have product categories set with :guilabel:`Costing Method` set as either `Average - Cost (AVCO)` or `First In First Out (FIFO)`. + than 0, or have product categories set with :guilabel:`Costing Method` set as either + :guilabel:`Average Cost (AVCO)` or :guilabel:`First In First Out (FIFO)`. .. image:: using_inventory_valuation/add-manual-valuation.png :align: center :alt: Add manual valuation of stock value to a product. Create manual valuation entries on the :guilabel:`Stock Valuation` dashboard by first navigating to -:menuselection:`Inventory app --> Reporting --> Inventory Valuation`, and then click the little gray -drop-down icon to the left of a product's name, to then reveal stock valuation line items below as -well as a teal :guilabel:`+ (plus)` button on the right. +:menuselection:`Inventory app --> Reporting --> Valuation`. Next, to enable the *product +revaluation* feature, select :menuselection:`Group by --> Product` to organize all the records by +product. Click on the gray :guilabel:`▶️ (drop-down triangle)` icon to reveal stock valuation line +items below, as well as a teal :guilabel:`➕ (plus)` button on the right. -Click the teal :guilabel:`+ (plus)` button to open up the :guilabel:`Product Revaluation` form, -where updates to the calculation of inventory valuation can be made, by increasing or decreasing the +Click the teal :guilabel:`+ (plus)` button to open up the :guilabel:`Product Revaluation` form. +Here, the inventory valuation for a product can be recalculated, by increasing or decreasing the unit price of each product. +.. note:: + The :guilabel:`▶️ (drop-down triangle)` and :guilabel:`➕ (plus)` buttons are only visible after + grouping entries by product. + .. image:: using_inventory_valuation/product-revaluation.png :align: center :alt: Product revaluation form adding a value of $1.00 with the reason being inflation. + +Inventory valuation journal entries +----------------------------------- + +In Odoo, automatic inventory valuation records are also recorded in the :menuselection:`Accounting +app --> Accounting --> Journal Entries` dashboard. On this comprehensive list of accounting entries, +inventory valuation records are identified by checking values in the :guilabel:`Journal` column, or +looking for the :guilabel:`Reference` column value which matches the warehouse operation reference +(e.g. `WH/IN/00014` for receipts). + +Clicking on an inventory valuation journal entry opens a *double-entry accounting* record. These +records are generated by Odoo to track the change of value in inventory valuation as products are +moved in and out of the warehouse. + +.. example:: + To view the inventory valuation of 10 *tables*, costing $10.00 each, upon reception from the + vendor, go to the :menuselection:`Journal Entries` page found in :menuselection:`Accounting app + --> Accounting --> Journal Entries`. Here, click the journal line where the :guilabel:`Reference` + column value matches the reference on the receipt, `WH/IN/00014`. + + .. image:: using_inventory_valuation/stock-valuation-product.png + :align: center + :alt: Stock valuation page depicting the products within a shipment. + + `Stock interim` is a holding account for money intended to pay vendors for the product. The + `stock valuation` account stores the value of all on-hand stock. + + .. image:: using_inventory_valuation/inventory-valuation-entry.png + :align: center + :alt: Accounting entry for the inventory valuation of 10 tables. + +.. seealso:: + `Odoo Tutorial: Inventory Valuation `_ diff --git a/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/inventory-valuation-products.png b/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/inventory-valuation-products.png index 189cac11a..8123e1cce 100644 Binary files a/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/inventory-valuation-products.png and b/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/inventory-valuation-products.png differ diff --git a/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/valuation-smart-button.png b/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/valuation-smart-button.png index 24b9bddaf..90dea63ca 100644 Binary files a/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/valuation-smart-button.png and b/content/applications/inventory_and_mrp/inventory/management/reporting/using_inventory_valuation/valuation-smart-button.png differ