Inventory Management

Last updated: november 21, 2019

Inventory Management

INVENTORY OPERATIONS

TRANSFER

The Dashboard gives you a glimpse to all the operations in your Warehouses.

To view all the operations specifically in the warehouse, Got to

Inventory -> Operations->Transfers

Transfers include the receipts, delivery orders and internal transfers. You can see all listed here.

You can click and view the status of each one.

BATCH TRANSFER

Batch Transfer is defined as a group of transfers, picked together to make a batch. Here, transfers include the receipts, delivery orders and internal transfers.

In the usual scenario, the individual manages their every transfer separately. This is quite strenuous and challenging. However, under batch transfer, one can pick together several transfers and bring them under a single batch This significantly reduces the transport time and allows the business to fulfill large batches of items in a single move.

To initiate Batch Transfer, go to Inventory>Operations>Batch Transfer

Create Batch Transfer

After enabling the settings, one can create batch transfer.

Click CREATE button.

A creation form will appear like below:

Responsible: Person Responsible for this Batch Transfer

Add a line: Here, one can add transfers for this batch.

Via clicking CONFIRM button, you can make the Batch Picking.

INCOMING TRANSFER

Receive products in stock

Firstly, create products under Master Data > Products.

If you set your product type as Storable, you can track its stock, say how many units are available and what is the forecasted number of units. However, in case, if you do not want to track the stock, just add them in your receipts/delivery, you can set it as consumable.

Receive Products in Stock

Now create a receipt to enter products from your supplier in stock.

On the receipt document, you can specify the supplier (receive from), quantity of different products. Once everything is added, click on VALIDATE button. You products will enter the stock.

In case you have a planned transfer, you can create a planned receipt with a scheduled date.

Insert here the initial demand for each product, corresponding to what supplier ordered.

After entering click MARK AS DO for considering it in your forecast.

Receive Products in Stock from Purchase Orders

Validate the RFQ and create a receipt under purchase app. The corresponding receipt will be visible on the purchase order.

OUTGOING TRANSFER

Deliver products from stock

Firstly, create products under Master Data > Products.

If you set your product type as Storable, you can track its stock, say how many units are available and what is the forecasted number of units. However, in case, if you do not want to track the stock, just add them in your receipts/delivery, you can set it as consumable.

Deliver Products from Stock

As the products gets ready, you can proceed with delivering products to customers. The step is as follows:

In case of immediate transfer, click the option and specify the partner (to whom products will have delivered), products and their quantities. After delivery, click VALIDATE button. The products will be deleted from your stock.

In case you have a planned delivery, you can create a planned delivery with a scheduled date. Also add initial demand for each product, corresponding customer order. After entering click MARK AS DO for considering it in your forecast.

Deliver Products from Stock from a Sale Order

Product delivery can be initiated after validating a quotation. The corresponding delivery will be visible on the sale order.

INVENTORY ADJUSTMENTS

Inventory Adjustments acts as a pivotal feature in a warehouse management software to keep the inventory right. Once your products have been defined, it is time to make your initial inventory. You will reflect reality by inventorying the right quantities in the right locations.

So firstly configure your product via going to Inventory>Master Data> Products.

Set the product type as Storable for tracking its stock and making inventory adjustments

Inventory Adjustment for one Product

As soon as you open your product form you get access to the UPDATE QUANTITY button. You can see here, 0 product On Hand.

Click on the Update QTY on Hand button.

Upon clicking, you can see the current stock for this product. You can make edits such as locations, packages, or add new serial/lot numbers.

Once you come back to your product, you see that the quantity on hand updated.

Inventory Adjustment for Multiple Products

Operations > Inventory Adjustments and create a new one.

Here, you can define an inventory reference, a title for your inventory adjustment. Also you can decide whether to proceed with the inventory adjustment for all products or for some.

Then click START INVENTORY.

If there exists certain products in stock, Odoo will add the lines corresponding to theoretical quantity in stock. You can also add new lines with your other products.

Odoo will highlight in red if there comes a difference between the theoretical quantity on hand and quantity that is manually entered. After entering every product, click VALIDATE INVENTORY. Eventually, Quantities on hand of different products will be updated.

SCRAP MANAGEMENT

It is quite obvious to find scrap in your warehouse. Be it in the form of damaged, expired or any other. Scrap is often noticed while picking a product. Odoo helps you to managed scraps via moving these damaged goods to the scrap area.

Configuration

Odoo automatically creates a scrap location under the name virtual location or scrap. However, one can create a new scrap location via going to

Inventory > Configuration > Settings and activating Storage Locations.

Now, go to Configuration > Locations and create your scrap location.

If you tick the option, Is a scrap location, to allow using this location to put scrapped/damaged goods.

Ways to scrap products

One can scrap products from receipts, delivery order, and from internal transfer.

Scrap from receipt

Go to Inventory > Dashboard > Receipts

click on 1 TO PROCESS button.

Open the receipt and validate the picking. As the products enter the stock, SCRAP button appears on receipt screen.

Click SCRAP to remove the damaged goods from receipt.

Soon the products will be moved from stock to scrap location.

Scrap from delivery order

Go to Inventory > Dashboard > Delivery orders. Click 1 TO PROCESS button.

Once done, open the delivery order.

Click the SCRAP button on top.

Soon products shall be moved from available stock to virtual scrap location.

To view scrap orders,

Scrap from an internal transfer

Go to Inventory > Dashboard > Internal Transfers.

Open internal transfers and click on scrap button.

LANDED COST

Landed cost is the total price of a product once it has arrived at buyers’ hand. The total cost of a landed shipment including purchase price, freight, insurance, and other costs up to the port of destination. This includes the transportation fee, duty, handling fees, taxes, insurance, currency conversion, crating, handling and payment fees, etc. These prices are added and divided to get the actual selling price of the product.

Landed Costs = The purchase price of the product + Any additional charges to get the product to the buyer’s hands.

The way of calculating landed cost will vary according to the company and products which they are handling, etc. In some instances, it may also include the customs duties and other taxes levied on the shipment.

Configuration

Inventory->Configuration-> Settings->Valuation->Landed Costs

Now if you go to Inventory>Operations>Landed costs and click create button, you will be navigated to a new creation form like below:

Click Add a line to define a product for which the landed cost type is created.

Split Method: The field defines the method of splitting the landed cost type.

Odoo provides five split method options:

  • Equal: Selecting the option enables to equally divide the costs.
  • By Quantity: Enabling the option, costs will be divided according to products quantity.
  • By Current Cost: Enabling the option, costs will be divided according to product’s current cost.
  • By Weight: Enabling the option, costs will be divided depending on the product’s weight.
  • By Weight: Enabling the option, costs will be divided depending on the product’s weight.
  • By Volume: Enabling the option, costs will be divided depending on the product’s volume.

Cost: The field defines the cost used for stock valuation in Standard price and as a first price to set in average/FIFO. Also used as a base price for pricelists. Expressed in the default units of measure of the product.

RUN SCHEDULER

The scheduler is the calculation engine which plans and prioritizes production and purchasing automatically according to the rules defined on products. By default, the scheduler is set to run once a day (Odoo automatically creates a Scheduled Action for this).

Calculating Requirements / Scheduling

Scheduling only validates procurements that are confirmed but not yet started. These procurement reservations will themselves start production, tasks or purchases depending on the configuration of the requested product.

You take into account the priority of operations when starting reservations and procurements. Urgent requests, those with a date in the past, or requests with a date earlier than the others will be started first. In case there are no enough products in stock to satisfy all the requests, you can be sure that the most urgent requests will be produced first.

Configure and run the scheduler

Run the scheduler manually

This feature is not visible by default. You have to enable debug mode to see this. To enable debug mode, go to Help ‣ About and click on Activate the developer mode.

You can also start the scheduler manually from the menu Inventory> Operations> Run Schedulers. The scheduler uses all the relevant parameters defined for products, suppliers and the company to determine the priorities between the different production orders, deliveries and supplier purchases.

Configure and run the scheduler (only for advanced users)

This feature is not visible by default. You have to enable debug mode to see this. To enable debug mode, go to Help -> About and click on Activate the developer mode.

You can set the starting time of the scheduler by modifying the corresponding action in the menu Settings ‣ Technical ‣ Automation ‣ Scheduled Actions. Modify the Run mrp Scheduler configuration.

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