[IMP] inventory: Merge continental/anglo-saxon documentation pages
This commit is contained in:
Yannick Tivisse
parent
5272847007
commit
98331e1f4c
@ -126,7 +126,7 @@
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data.addWatch('chart', function (k, m, prev, next) {
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React.render(
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React.createElement(Controls, {p: next}),
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document.getElementById('chart-controls'));
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document.getElementById('chart-controls-anglo-saxon'));
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React.render(
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React.createElement(Chart, {p: next}),
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document.querySelector('.valuation-chart-anglo-saxon'));
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@ -137,7 +137,7 @@
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if (!chart) { return; }
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var controls = document.createElement('div');
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controls.setAttribute('id', 'chart-controls');
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controls.setAttribute('id', 'chart-controls-anglo-saxon');
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chart.parentNode.insertBefore(controls, chart);
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data.reset(Immutable.Map({
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@ -126,7 +126,7 @@
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data.addWatch('chart', function (k, m, prev, next) {
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React.render(
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React.createElement(Controls, {p: next}),
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document.getElementById('chart-controls'));
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document.getElementById('chart-controls-continental'));
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React.render(
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React.createElement(Chart, {p: next}),
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document.querySelector('.valuation-chart-continental'));
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@ -137,7 +137,7 @@
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if (!chart) { return; }
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var controls = document.createElement('div');
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controls.setAttribute('id', 'chart-controls');
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controls.setAttribute('id', 'chart-controls-continental');
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chart.parentNode.insertBefore(controls, chart);
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data.reset(Immutable.Map({
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@ -6,6 +6,5 @@ Inventory
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:titlesonly:
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inventory/avg_price_valuation
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../../../inventory/management/reporting/valuation_methods_continental
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../../../inventory/management/reporting/valuation_methods_anglo_saxon
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../../../inventory/management/reporting/inventory_valuation_config
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@ -5,5 +5,5 @@ Business Mementos
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.. toctree::
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Accounting Memento (US GAAP) <https://odoo.com/documentation/user/accounting/overview/main_concepts/memento.html>
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Double-Entry Inventory <https://odoo.com/documentation/user/inventory/overview/concepts/double-entry.html>
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Inventory Valuation (Continental Accounting) <https://odoo.com/documentation/user/inventory/management/reporting/valuation_methods_continental.html>
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Inventory Valuation (Anglo-Saxon Accounting) <https://odoo.com/documentation/user/inventory/management/reporting/valuation_methods_anglo_saxon.html>
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Inventory Valuation (Continental Accounting) <https://odoo.com/documentation/user/inventory/management/reporting/inventory_valuation_config.html>
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Inventory Valuation (Anglo-Saxon Accounting) <https://odoo.com/documentation/user/inventory/management/reporting/inventory_valuation_config.html>
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3
conf.py
3
conf.py
@ -299,8 +299,7 @@ texinfo_documents = [
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odoo_cover_external = {
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'https://odoo.com/documentation/user/accounting/overview/main_concepts/memento.html' : 'banners/m_accounting.jpg',
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'https://odoo.com/documentation/user/inventory/overview/concepts/double-entry.html' : 'banners/m_1.jpg',
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'https://odoo.com/documentation/user/inventory/management/reporting/valuation_methods_continental.html' : 'banners/m_2.jpg',
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'https://odoo.com/documentation/user/inventory/management/reporting/valuation_methods_anglo_saxon.html' : 'banners/m_2.jpg',
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'https://odoo.com/documentation/user/inventory/management/reporting/inventory_valuation_config.html' : 'banners/m_2.jpg',
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}
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github_user = 'odoo'
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@ -9,6 +9,4 @@ Valuation Methods
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reporting/inventory_valuation_config
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reporting/using_inventory_valuation
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reporting/integrating_landed_costs
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reporting/valuation_methods_continental
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reporting/valuation_methods_anglo_saxon
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../../accounting/others/inventory/avg_price_valuation
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@ -1,3 +1,5 @@
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:code-column:
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=================================
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Inventory valuation configuration
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=================================
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@ -19,8 +21,160 @@ Costing Methods: Standard, FIFO, AVCO
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The costing method is defined in the product category. There are three
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options available. Each of them is explained in detail below.
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.. image:: media/inventory_valuation_config_01.png
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:align: center
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.. rst-class:: alternatives doc-aside
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Standard Price
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.. rst-class:: values-table
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.. list-table::
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:widths: 28 18 18 18 18
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:header-rows: 1
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:stub-columns: 1
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* - Operation
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- Unit Cost
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- Qty On Hand
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- Delta Value
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- Inventory Value
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* -
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- €10
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- 0
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-
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- €0
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* - Receive 8 Products at €10
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- €10
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- 8
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- +8*€10
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- €80
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* - Receive 4 Products at €16
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- €10
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- 12
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- +4*€10
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- €120
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* - Deliver 10 Products
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- €10
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- 2
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- | -10*€10
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|
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- €20
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* - Receive 2 Products at €9
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- €10
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- 4
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- +2*€10
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- €40
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**Standard Price** means you estimate the cost price based
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on direct materials, direct labor and manufacturing overhead
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at the end of a specific period (usually once a year). You
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enter this cost price in the product form.
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Average Price
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.. rst-class:: values-table
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.. list-table::
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:widths: 28 18 18 18 18
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:header-rows: 1
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:stub-columns: 1
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* - Operation
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- Unit Cost
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- Qty On Hand
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- Delta Value
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- Inventory Value
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* -
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- €0
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- 0
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-
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- €0
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* - Receive 8 Products at €10
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- €10
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- 8
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- +8*€10
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- €80
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* - Receive 4 Products at €16
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- €12
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- 12
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- +4*€16
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- €144
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* - Deliver 10 Products
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- €12
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- 2
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- | -10*€12
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|
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- €24
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* - Receive 2 Products at €6
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- €9
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- 4
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- +2*€6
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- €36
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The **Average Price** method recomputes the cost price as a receipt order
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has been processed, based on prices defined in tied purchase orders:
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FORMULA (see here attached)
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The average cost does not change when products leave the warehouse.
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From an accounting point of view, this method is mainly justified in
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case of huge purchase price variations and is quite unusual due to its
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operational complexity. Your actually need a software like Odoo to
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easily keep this cost up-to-date.
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This method is dedicated to advanced users. It requires well established
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business processes because the order in which you process receipt orders
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matters in the cost computation.
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FIFO
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.. rst-class:: values-table
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.. list-table::
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:widths: 28 18 18 18 18
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:header-rows: 1
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:stub-columns: 1
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* - Operation
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- Unit Cost
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- Qty On Hand
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- Delta Value
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- Inventory Value
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* -
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- €0
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- 0
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-
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- €0
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* - Receive 8 Products at €10
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- €10
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- 8
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- +8*€10
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- €80
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* - Receive 4 Products at €16
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- €12
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- 12
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- +4*€16
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- €144
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* - Deliver 10 Products
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- €16
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- 2
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- | -8*€10
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| -2*€16
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- €32
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* - Receive 2 Products at €6
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- €11
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- 4
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- +2*€6
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- €44
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For **Real Price** (FIFO, LIFO, FEFO, etc), the costing is further
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refined by the removal strategy set on the warehouse location
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or product's internal category. The default strategy is FIFO. With
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such method, your inventory value is computed from the real cost
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of your stored products (cfr. Quantitative Valuation) and not from
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the cost price shown in the product form. Whenever you ship items,
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the cost price is reset to the cost of the last item(s) shipped.
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This cost price is used to value any product not received from a
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purchase order (e.g. inventory adjustments).
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FIFO is advised if you manage all your workflow into Odoo (Sales,
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Purchases, Inventory). It suits any kind of users.
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Standard Price
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--------------
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@ -80,6 +234,139 @@ value, go in Inventory > Reporting > Inventory Valuation.
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.. tip::
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If the stock value has decreased, the assets account will be credited.
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Continental Accounting
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~~~~~~~~~~~~~~~~~~~~~~
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In a periodic inventory valuation, goods reception and
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outgoing shipments have no direct impact in the accounting.
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At the end of the month or year, the accountant posts one
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journal entry representing the value of the physical inventory.
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This is the default configuration in Odoo and it works
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out-of-the-box. Check following operations and find out how
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Odoo is managing the accounting postings.
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.. rst-class:: alternatives doc-aside
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Vendor Bill
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.. rst-class:: values-table
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============================= ===== ======
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\ Debit Credit
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============================= ===== ======
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Assets: Inventory 50
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Assets: Deferred Tax Assets 4.68
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Liabilities: Accounts Payable 54.68
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============================= ===== ======
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Configuration:
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* Purchased Goods: defined on the product or on the internal category of related product (Expense Account field)
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* Deferred Tax Assets: defined on the tax used on the purchase order line
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* Accounts Payable: defined on the vendor related to the bill
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Goods Receptions
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No Journal Entry
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Customer Invoice
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.. rst-class:: values-table
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===================================== ===== ======
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\ Debit Credit
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===================================== ===== ======
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Revenues: Sold Goods 100
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Liabilities: Deferred Tax Liabilities 9
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Assets: Accounts Receivable 109
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===================================== ===== ======
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Configuration:
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* Revenues: defined on the product or on the internal category of related product (Income Account field)
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* Deferred Tax Liabilities: defined on the tax used on the invoice line
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* Accounts Receivable: defined on the customer (Receivable Account)
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The fiscal position used on the invoice may have a rule that replaces the
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Income Account or the tax defined on the product by another one.
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Customer Shipping
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No Journal Entry
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Manufacturing Orders
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No Journal Entry
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.. raw:: html
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<hr style="float: none; visibility: hidden; margin: 0;">
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At the end of the month/year, your company does a physical inventory
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or just relies on the inventory in Odoo to value the stock into your books.
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Create a journal entry to move the stock variation value from your
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Profit&Loss section to your assets.
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.. h:div:: doc-aside
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.. rst-class:: values-table
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===================================== ===== ======
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\ Debit Credit
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===================================== ===== ======
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Assets: Inventory X
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Expenses: Inventory Variations X
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===================================== ===== ======
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If the stock value decreased, the **Inventory** account is credited
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and te **Inventory Variations** debited.
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.. raw:: html
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<hr style="float: none; visibility: hidden; margin: 0;">
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Anglo-Saxon Accounting
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~~~~~~~~~~~~~~~~~~~~~~
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.. rst-class:: alternatives doc-aside
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Vendor Bill
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.. rst-class:: values-table
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============================= ===== ======
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\ Debit Credit
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============================= ===== ======
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Assets: Inventory 50
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Assets: Deferred Tax Assets 4.68
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Liabilities: Accounts Payable 54.68
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============================= ===== ======
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Configuration:
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* Purchased Goods: defined on the product or on the internal category of related product
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(Expense Account field)
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* Deferred Tax Assets: defined on the tax used on the purchase order line
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* Accounts Payable: defined on the vendor related to the bill
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Goods Receptions
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No Journal Entry
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Customer Invoice
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.. rst-class:: values-table
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===================================== ===== ======
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\ Debit Credit
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===================================== ===== ======
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Revenues: Sold Goods 100
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Liabilities: Deferred Tax Liabilities 9
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Assets: Accounts Receivable 109
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===================================== ===== ======
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Configuration:
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* Revenues: defined on the product or on the internal category of related
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product (Income Account field)
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* Deferred Tax Liabilities: defined on the tax used on the invoice line
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* Accounts Receivable: defined on the customer (Receivable Account)
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The fiscal position used on the invoice may have a rule that replaces the
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Income Account or the tax defined on the product by another one.
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Customer Shipping
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No Journal Entry
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Manufacturing Orders
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No Journal Entry
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.. raw:: html
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<hr style="float: none; visibility: hidden; margin: 0;">
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Automated Inventory Valuation
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-----------------------------
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@ -106,9 +393,67 @@ Usually, based on your country, the correct accounting mode will be
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chosen by default. If you want to verify your accounting mode, activate
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the developer mode and open your accounting settings.
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.. image:: media/inventory_valuation_config_03.png
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:align: center
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Continental Accounting
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~~~~~~~~~~~~~~~~~~~~~~
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.. seealso::
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* `How to do an inventory valuation? (Anglo-Saxon Accounting) <https://www.odoo.com/documentation/user/13.0/inventory/management/reporting/valuation_methods_anglo_saxon.html>`_
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* `How to do an inventory valuation? (Continental Accounting) <https://www.odoo.com/documentation/user/13.0/inventory/management/reporting/valuation_methods_continental.html>`_
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.. h:div:: valuation-chart-continental doc-aside
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.. placeholder
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.. raw:: html
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<hr style="float: none; visibility: hidden; margin: 0;">
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.. h:div:: doc-aside
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**Configuration:**
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- Accounts Receivable/Payable: defined on the partner (Accounting tab)
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- Deferred Tax Assets/Liabilities: defined on the tax used on the invoice line
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- Revenues/Expenses: defined by default on product's internal category; can be
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also set in product form (Accounting tab) as a replacement value.
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- Inventory Variations: to set as Stock Input/Output Account in product's internal
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category
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- Inventory: to set as Stock Valuation Account in product's internal category
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Anglo-Saxon Accounting
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~~~~~~~~~~~~~~~~~~~~~~
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.. h:div:: valuation-chart-anglo-saxon doc-aside
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.. placeholder
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.. raw:: html
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<hr style="float: none; visibility: hidden; margin: 0;">
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.. h:div:: doc-aside
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**Configuration:**
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- Accounts Receivable/Payable: defined on the partner (Accounting tab)
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- Deferred Tax Assets/Liabilities: defined on the tax used on the
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invoice line
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- Revenues: defined on the product category as a default, or specifically
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to a specific product.
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- Expenses: this is where you should set the "Cost of Goods Sold" account.
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Defined on the product category as a default value, or specifically on
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the product form.
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- Goods Received Not Purchased: to set as Stock Input Account in product's
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internal category
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- Goods Issued Not Invoiced: to set as Stock Output Account in product's
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internal category
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- Inventory: to set as Stock Valuation Account in product's internal category
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- Price Difference: to set in product's internal category or in product
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form as a specific replacement value
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Binary file not shown.
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Before Width: | Height: | Size: 4.2 KiB |
Binary file not shown.
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Before Width: | Height: | Size: 3.7 KiB |
@ -1,369 +0,0 @@
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:code-column:
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==========================================================
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How to do an inventory valuation? (Anglo-Saxon Accounting)
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==========================================================
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Every year your inventory valuation has to be recorded in your
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balance sheet. This implies two main choices:
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- the way you compute the cost of your stored items
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(Standard vs. Average vs. Real Price);
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- the way you record the inventory value into your books
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(periodic vs. Perpetual).
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Costing Method
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==============
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.. rst-class:: alternatives doc-aside
|
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|
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Standard Price
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.. rst-class:: values-table
|
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|
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.. list-table::
|
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:widths: 28 18 18 18 18
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:header-rows: 1
|
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:stub-columns: 1
|
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|
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* - Operation
|
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- Unit Cost
|
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- Qty On Hand
|
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- Delta Value
|
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- Inventory Value
|
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* -
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- $10
|
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- 0
|
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-
|
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- $0
|
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* - Receive 8 Products at $10
|
||||
- $10
|
||||
- 8
|
||||
- +8*$10
|
||||
- $80
|
||||
* - Receive 4 Products at $16
|
||||
- $10
|
||||
- 12
|
||||
- +4*$10
|
||||
- $120
|
||||
* - Deliver 10 Products
|
||||
- $10
|
||||
- 2
|
||||
- | -10*$10
|
||||
|
|
||||
- $20
|
||||
* - Receive 2 Products at $9
|
||||
- $10
|
||||
- 4
|
||||
- +2*$10
|
||||
- $40
|
||||
|
||||
**Standard Price** means you estimate the cost price based
|
||||
on direct materials, direct labor and manufacturing overhead
|
||||
at the end of a specific period (usually once a year). You
|
||||
enter this cost price in the product form.
|
||||
|
||||
Average Price
|
||||
.. rst-class:: values-table
|
||||
|
||||
.. list-table::
|
||||
:widths: 28 18 18 18 18
|
||||
:header-rows: 1
|
||||
:stub-columns: 1
|
||||
|
||||
* - Operation
|
||||
- Unit Cost
|
||||
- Qty On Hand
|
||||
- Delta Value
|
||||
- Inventory Value
|
||||
* -
|
||||
- $0
|
||||
- 0
|
||||
-
|
||||
- $0
|
||||
* - Receive 8 Products at $10
|
||||
- $10
|
||||
- 8
|
||||
- +8*$10
|
||||
- $80
|
||||
* - Receive 4 Products at $16
|
||||
- $12
|
||||
- 12
|
||||
- +4*$16
|
||||
- $144
|
||||
* - Deliver 10 Products
|
||||
- $12
|
||||
- 2
|
||||
- | -10*$12
|
||||
|
|
||||
- $24
|
||||
* - Receive 2 Products at $6
|
||||
- $9
|
||||
- 4
|
||||
- +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:
|
||||
FORMULA (see here attached)
|
||||
|
||||
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
|
||||
|
||||
.. list-table::
|
||||
:widths: 28 18 18 18 18
|
||||
:header-rows: 1
|
||||
:stub-columns: 1
|
||||
|
||||
* - Operation
|
||||
- Unit Cost
|
||||
- Qty On Hand
|
||||
- Delta Value
|
||||
- Inventory Value
|
||||
* -
|
||||
- $0
|
||||
- 0
|
||||
-
|
||||
- $0
|
||||
* - Receive 8 Products at $10
|
||||
- $10
|
||||
- 8
|
||||
- +8*$10
|
||||
- $80
|
||||
* - Receive 4 Products at $16
|
||||
- $12
|
||||
- 12
|
||||
- +4*$16
|
||||
- $144
|
||||
* - Deliver 10 Products
|
||||
- $16
|
||||
- 2
|
||||
- | -8*$10
|
||||
| -2*$16
|
||||
- $32
|
||||
* - Receive 2 Products at $6
|
||||
- $11
|
||||
- 4
|
||||
- +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).
|
||||
|
||||
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
|
||||
|
||||
.. list-table::
|
||||
:widths: 28 18 18 18 18
|
||||
:header-rows: 1
|
||||
:stub-columns: 1
|
||||
|
||||
* - Operation
|
||||
- Unit Cost
|
||||
- Qty On Hand
|
||||
- Delta Value
|
||||
- Inventory Value
|
||||
* -
|
||||
- $0
|
||||
- 0
|
||||
-
|
||||
- $0
|
||||
* - Receive 8 Products at $10
|
||||
- $10
|
||||
- 8
|
||||
- +8*$10
|
||||
- $80
|
||||
* - Receive 4 Products at $16
|
||||
- $12
|
||||
- 12
|
||||
- +4*$16
|
||||
- $144
|
||||
* - Deliver 10 Products
|
||||
- $10
|
||||
- 2
|
||||
- | -4*$16
|
||||
| -6*$10
|
||||
- $20
|
||||
* - Receive 2 Products at $6
|
||||
- $8
|
||||
- 4
|
||||
- +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
|
||||
method from products' internal categories. Categories show up
|
||||
in the Inventory tab of the product form.
|
||||
|
||||
Whatever the method is, Odoo provides a full inventory valuation
|
||||
in :menuselection:`Inventory --> Reports --> Inventory Valuation`
|
||||
(i.e. current quantity in stock * cost price).
|
||||
|
||||
Periodic Inventory Valuation
|
||||
============================
|
||||
|
||||
In a periodic inventory valuation, goods reception and
|
||||
outgoing shipments have no direct impact in the accounting.
|
||||
At the end of the month or year, the accountant posts one
|
||||
journal entry representing the value of the physical inventory.
|
||||
|
||||
This is the default configuration in Odoo and it works
|
||||
out-of-the-box. Check following operations and find out how
|
||||
Odoo is managing the accounting postings.
|
||||
|
||||
.. rst-class:: alternatives doc-aside
|
||||
|
||||
Vendor Bill
|
||||
.. rst-class:: values-table
|
||||
|
||||
============================= ===== ======
|
||||
\ Debit Credit
|
||||
============================= ===== ======
|
||||
Assets: Inventory 50
|
||||
Assets: Deferred Tax Assets 4.68
|
||||
Liabilities: Accounts Payable 54.68
|
||||
============================= ===== ======
|
||||
|
||||
Configuration:
|
||||
* Purchased Goods: defined on the product or on the internal category of related product
|
||||
(Expense Account field)
|
||||
* Deferred Tax Assets: defined on the tax used on the purchase order line
|
||||
* Accounts Payable: defined on the vendor related to the bill
|
||||
Goods Receptions
|
||||
No Journal Entry
|
||||
Customer Invoice
|
||||
.. rst-class:: values-table
|
||||
|
||||
===================================== ===== ======
|
||||
\ Debit Credit
|
||||
===================================== ===== ======
|
||||
Revenues: Sold Goods 100
|
||||
Liabilities: Deferred Tax Liabilities 9
|
||||
Assets: Accounts Receivable 109
|
||||
===================================== ===== ======
|
||||
|
||||
Configuration:
|
||||
* Revenues: defined on the product or on the internal category of related
|
||||
product (Income Account field)
|
||||
* Deferred Tax Liabilities: defined on the tax used on the invoice line
|
||||
* Accounts Receivable: defined on the customer (Receivable Account)
|
||||
|
||||
The fiscal position used on the invoice may have a rule that replaces the
|
||||
Income Account or the tax defined on the product by another one.
|
||||
Customer Shipping
|
||||
No Journal Entry
|
||||
Manufacturing Orders
|
||||
No Journal Entry
|
||||
|
||||
.. raw:: html
|
||||
|
||||
<hr style="float: none; visibility: hidden; margin: 0;">
|
||||
|
||||
At the end of the month/year, your company does a physical inventory
|
||||
or just relies on the inventory in Odoo to value the stock into your books.
|
||||
|
||||
Then you need to break down the purchase balance into both the inventory and
|
||||
the cost of goods sold using the following formula:
|
||||
|
||||
Cost of goods sold (COGS) = Starting inventory value + Purchases – Closing inventory value
|
||||
|
||||
To update the stock valuation in your books, record such an entry:
|
||||
|
||||
.. h:div:: doc-aside
|
||||
|
||||
.. rst-class:: values-table
|
||||
|
||||
===================================== ===== ======
|
||||
\ Debit Credit
|
||||
===================================== ===== ======
|
||||
Assets: Inventory (closing value) X
|
||||
Expenses: Cost of Good Sold X
|
||||
Expenses: Purchased Goods X
|
||||
Assets: Inventory (starting value) X
|
||||
===================================== ===== ======
|
||||
|
||||
Perpetual Inventory Valuation
|
||||
=============================
|
||||
|
||||
In a perpetual inventory valuation, goods receptions and
|
||||
outgoing shipments are posted in your books in real time.
|
||||
The books are therefore always up-to-date. This mode is
|
||||
dedicated to expert accountants and advanced users only.
|
||||
As opposed to periodic valuation, it requires some extra
|
||||
configuration & testing.
|
||||
|
||||
Let's take the case of a reseller.
|
||||
|
||||
.. h:div:: valuation-chart-anglo-saxon doc-aside
|
||||
|
||||
.. placeholder
|
||||
|
||||
.. raw:: html
|
||||
|
||||
<hr style="float: none; visibility: hidden; margin: 0;">
|
||||
|
||||
.. h:div:: doc-aside
|
||||
|
||||
**Configuration:**
|
||||
|
||||
- Accounts Receivable/Payable: defined on the partner (Accounting tab)
|
||||
|
||||
- Deferred Tax Assets/Liabilities: defined on the tax used on the
|
||||
invoice line
|
||||
|
||||
- Revenues: defined on the product category as a default, or specifically
|
||||
to a specific product.
|
||||
|
||||
- Expenses: this is where you should set the "Cost of Goods Sold" account.
|
||||
Defined on the product category as a default value, or specifically on
|
||||
the product form.
|
||||
|
||||
- Goods Received Not Purchased: to set as Stock Input Account in product's
|
||||
internal category
|
||||
|
||||
- Goods Issued Not Invoiced: to set as Stock Output Account in product's
|
||||
internal category
|
||||
|
||||
- Inventory: to set as Stock Valuation Account in product's internal category
|
||||
|
||||
- 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:`integrating_landed_costs`
|
||||
@ -1,358 +0,0 @@
|
||||
:code-column:
|
||||
|
||||
==========================================================
|
||||
How to do an inventory valuation? (Continental Accounting)
|
||||
==========================================================
|
||||
|
||||
Every year your inventory valuation has to be recorded in your
|
||||
balance sheet. This implies two main choices:
|
||||
|
||||
- the way you compute the cost of your stored items
|
||||
(Standard vs. Average vs. Real Price);
|
||||
|
||||
- the way you record the inventory value into your books
|
||||
(periodic vs. Perpetual).
|
||||
|
||||
Costing Method
|
||||
==============
|
||||
|
||||
.. rst-class:: alternatives doc-aside
|
||||
|
||||
Standard Price
|
||||
.. rst-class:: values-table
|
||||
|
||||
.. list-table::
|
||||
:widths: 28 18 18 18 18
|
||||
:header-rows: 1
|
||||
:stub-columns: 1
|
||||
|
||||
* - Operation
|
||||
- Unit Cost
|
||||
- Qty On Hand
|
||||
- Delta Value
|
||||
- Inventory Value
|
||||
* -
|
||||
- €10
|
||||
- 0
|
||||
-
|
||||
- €0
|
||||
* - Receive 8 Products at €10
|
||||
- €10
|
||||
- 8
|
||||
- +8*€10
|
||||
- €80
|
||||
* - Receive 4 Products at €16
|
||||
- €10
|
||||
- 12
|
||||
- +4*€10
|
||||
- €120
|
||||
* - Deliver 10 Products
|
||||
- €10
|
||||
- 2
|
||||
- | -10*€10
|
||||
|
|
||||
- €20
|
||||
* - Receive 2 Products at €9
|
||||
- €10
|
||||
- 4
|
||||
- +2*€10
|
||||
- €40
|
||||
|
||||
**Standard Price** means you estimate the cost price based
|
||||
on direct materials, direct labor and manufacturing overhead
|
||||
at the end of a specific period (usually once a year). You
|
||||
enter this cost price in the product form.
|
||||
|
||||
Average Price
|
||||
.. rst-class:: values-table
|
||||
|
||||
.. list-table::
|
||||
:widths: 28 18 18 18 18
|
||||
:header-rows: 1
|
||||
:stub-columns: 1
|
||||
|
||||
* - Operation
|
||||
- Unit Cost
|
||||
- Qty On Hand
|
||||
- Delta Value
|
||||
- Inventory Value
|
||||
* -
|
||||
- €0
|
||||
- 0
|
||||
-
|
||||
- €0
|
||||
* - Receive 8 Products at €10
|
||||
- €10
|
||||
- 8
|
||||
- +8*€10
|
||||
- €80
|
||||
* - Receive 4 Products at €16
|
||||
- €12
|
||||
- 12
|
||||
- +4*€16
|
||||
- €144
|
||||
* - Deliver 10 Products
|
||||
- €12
|
||||
- 2
|
||||
- | -10*€12
|
||||
|
|
||||
- €24
|
||||
* - Receive 2 Products at €6
|
||||
- €9
|
||||
- 4
|
||||
- +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:
|
||||
FORMULA (see here attached)
|
||||
|
||||
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
|
||||
|
||||
.. list-table::
|
||||
:widths: 28 18 18 18 18
|
||||
:header-rows: 1
|
||||
:stub-columns: 1
|
||||
|
||||
* - Operation
|
||||
- Unit Cost
|
||||
- Qty On Hand
|
||||
- Delta Value
|
||||
- Inventory Value
|
||||
* -
|
||||
- €0
|
||||
- 0
|
||||
-
|
||||
- €0
|
||||
* - Receive 8 Products at €10
|
||||
- €10
|
||||
- 8
|
||||
- +8*€10
|
||||
- €80
|
||||
* - Receive 4 Products at €16
|
||||
- €12
|
||||
- 12
|
||||
- +4*€16
|
||||
- €144
|
||||
* - Deliver 10 Products
|
||||
- €16
|
||||
- 2
|
||||
- | -8*€10
|
||||
| -2*€16
|
||||
- €32
|
||||
* - Receive 2 Products at €6
|
||||
- €11
|
||||
- 4
|
||||
- +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).
|
||||
|
||||
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
|
||||
|
||||
.. list-table::
|
||||
:widths: 28 18 18 18 18
|
||||
:header-rows: 1
|
||||
:stub-columns: 1
|
||||
|
||||
* - Operation
|
||||
- Unit Cost
|
||||
- Qty On Hand
|
||||
- Delta Value
|
||||
- Inventory Value
|
||||
* -
|
||||
- €0
|
||||
- 0
|
||||
-
|
||||
- €0
|
||||
* - Receive 8 Products at €10
|
||||
- €10
|
||||
- 8
|
||||
- +8*€10
|
||||
- €80
|
||||
* - Receive 4 Products at €16
|
||||
- €12
|
||||
- 12
|
||||
- +4*€16
|
||||
- €144
|
||||
* - Deliver 10 Products
|
||||
- €10
|
||||
- 2
|
||||
- | -4*€16
|
||||
| -6*€10
|
||||
- €20
|
||||
* - Receive 2 Products at €6
|
||||
- €8
|
||||
- 4
|
||||
- +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
|
||||
method from products' internal categories. Categories show up
|
||||
in the Inventory tab of the product form.
|
||||
|
||||
Whatever the method is, Odoo provides a full inventory valuation
|
||||
in :menuselection:`Inventory --> Reports --> Inventory Valuation`
|
||||
(i.e. current quantity in stock * cost price).
|
||||
|
||||
Periodic Inventory Valuation
|
||||
============================
|
||||
|
||||
In a periodic inventory valuation, goods reception and
|
||||
outgoing shipments have no direct impact in the accounting.
|
||||
At the end of the month or year, the accountant posts one
|
||||
journal entry representing the value of the physical inventory.
|
||||
|
||||
This is the default configuration in Odoo and it works
|
||||
out-of-the-box. Check following operations and find out how
|
||||
Odoo is managing the accounting postings.
|
||||
|
||||
.. rst-class:: alternatives doc-aside
|
||||
|
||||
Vendor Bill
|
||||
.. rst-class:: values-table
|
||||
|
||||
============================= ===== ======
|
||||
\ Debit Credit
|
||||
============================= ===== ======
|
||||
Assets: Inventory 50
|
||||
Assets: Deferred Tax Assets 4.68
|
||||
Liabilities: Accounts Payable 54.68
|
||||
============================= ===== ======
|
||||
|
||||
Configuration:
|
||||
* Purchased Goods: defined on the product or on the internal category of related product (Expense Account field)
|
||||
* Deferred Tax Assets: defined on the tax used on the purchase order line
|
||||
* Accounts Payable: defined on the vendor related to the bill
|
||||
Goods Receptions
|
||||
No Journal Entry
|
||||
Customer Invoice
|
||||
.. rst-class:: values-table
|
||||
|
||||
===================================== ===== ======
|
||||
\ Debit Credit
|
||||
===================================== ===== ======
|
||||
Revenues: Sold Goods 100
|
||||
Liabilities: Deferred Tax Liabilities 9
|
||||
Assets: Accounts Receivable 109
|
||||
===================================== ===== ======
|
||||
|
||||
Configuration:
|
||||
* Revenues: defined on the product or on the internal category of related product (Income Account field)
|
||||
* Deferred Tax Liabilities: defined on the tax used on the invoice line
|
||||
* Accounts Receivable: defined on the customer (Receivable Account)
|
||||
|
||||
The fiscal position used on the invoice may have a rule that replaces the
|
||||
Income Account or the tax defined on the product by another one.
|
||||
Customer Shipping
|
||||
No Journal Entry
|
||||
Manufacturing Orders
|
||||
No Journal Entry
|
||||
|
||||
.. raw:: html
|
||||
|
||||
<hr style="float: none; visibility: hidden; margin: 0;">
|
||||
|
||||
At the end of the month/year, your company does a physical inventory
|
||||
or just relies on the inventory in Odoo to value the stock into your books.
|
||||
|
||||
Create a journal entry to move the stock variation value from your
|
||||
Profit&Loss section to your assets.
|
||||
|
||||
.. h:div:: doc-aside
|
||||
|
||||
.. rst-class:: values-table
|
||||
|
||||
===================================== ===== ======
|
||||
\ Debit Credit
|
||||
===================================== ===== ======
|
||||
Assets: Inventory X
|
||||
Expenses: Inventory Variations X
|
||||
===================================== ===== ======
|
||||
|
||||
If the stock value decreased, the **Inventory** account is credited
|
||||
and te **Inventory Variations** debited.
|
||||
|
||||
.. raw:: html
|
||||
|
||||
<hr style="float: none; visibility: hidden; margin: 0;">
|
||||
|
||||
Perpetual Inventory Valuation
|
||||
=============================
|
||||
|
||||
In a perpetual inventory valuation, goods receptions and
|
||||
outgoing shipments are posted in your books in real time.
|
||||
The books are therefore always up-to-date. This mode is
|
||||
dedicated to expert accountants and advanced users only.
|
||||
As opposed to periodic valuation, it requires some extra
|
||||
configuration & testing.
|
||||
|
||||
Let's take the case of a reseller.
|
||||
|
||||
.. h:div:: valuation-chart-continental doc-aside
|
||||
|
||||
.. placeholder
|
||||
|
||||
.. raw:: html
|
||||
|
||||
<hr style="float: none; visibility: hidden; margin: 0;">
|
||||
|
||||
.. h:div:: doc-aside
|
||||
|
||||
**Configuration:**
|
||||
|
||||
- Accounts Receivable/Payable: defined on the partner (Accounting tab)
|
||||
|
||||
- Deferred Tax Assets/Liabilities: defined on the tax used on the invoice line
|
||||
|
||||
- Revenues/Expenses: defined by default on product's internal category; can be
|
||||
also set in product form (Accounting tab) as a replacement value.
|
||||
|
||||
- Inventory Variations: to set as Stock Input/Output Account in product's internal
|
||||
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:`integrating_landed_costs`
|
||||
@ -189,5 +189,4 @@ removal dates.
|
||||
|
||||
.. seealso::
|
||||
|
||||
* :doc:`../../management/reporting/valuation_methods_continental`
|
||||
* :doc:`../../management/reporting/valuation_methods_anglo_saxon`
|
||||
* :doc:`../../management/reporting/inventory_valuation_config`
|
||||
|
||||
Loading…
Reference in New Issue
Block a user