Prerequisite:

1. Set product category to Automated inventory valuation.

2. Set Anglo Saxon on accounting.

When the user pushes a manufacture order to finish even the warehouse doesn’t have enough material.

We will observe a situation where the quantity of material on hand becomes negative. Subsequently, when we attempt to restock the material through either procurement or inventory adjustment, Odoo will automatically create a revaluation journal entry to account for the negative inventory utilized in the prior manufacturing order.

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The following screenshot and workflow is using v16.0.

The solution should be applied to most of the versions.

Configuration:

1.      Setup work in progress (WIP) account (asset type of account) in inventory location > virtual production            

2. Set components, and finished good product to an automated  valuation in the product category (Either FIFO or Average costing  )

3. Create a component and finish goods product where the cost is $0 and there is 0 on hand quantity.

Workflow: 

4. Create a manufacture order to consume the components when there is 0 on hand to use.

5. Push the manufacture order to be complete (I.e., consume qty 1 components)

6. There is no journal entry since the stock valuation shows $0 on both finished goods and components.

7. Purchase and receive the components. (I.e., buy qty 10 components at $11 each)

8. Instead of 10, we will observe a quantity of 9 components. Simultaneously, Odoo will generate a revaluation journal entry, crediting the stock valuation to reflect the usage of a component.  

Explanation

* From steps 5 and 6, Odoo would automatically create a journal entry for the finished goods and a journal entry for the component.

*This is the missing journal entry (JE1) after completing a manufacturing order for the finished goods

*This is the missing journal entry (JE2) after completing a manufacturing order for the components
But Odoo automatically creates this journal entry when we purchase and receive the components.

*Upon acquiring the components for 10 units at $11 each, Odoo will automatically generate a journal entry to record the consumption of one component for the preceding manufacturing order once the 10 components have been received.

See the revaluation journal entry below

Revaluation journal entry of the component (JE2)

Since there is a missing journal entry (JE1) for finished goods upon manufacture order completion, after we deliver the product, Odoo will not recognize the stock value and the cost of goods sold.

*This is the missing journal entry (JE1) after completing a manufacturing order for the finished goods

* This is the missing journal entry (JE3) for delivering finished goods (sales)goods

* This is the missing journal entry (JE4) for the invoice for the cost of goods sold.

If all three missing journal entries are created automatically, the stock valuation account and stock interim delivered account would offset to zero.

We should manually create the journal entry for Work in progress and cost of goods sold.

This way work in progress would balance to zero with the revaluation journal entry.

Solution: 

Create a manual journal entry (JE5). 
Cr. Work in progress and Dr. Cost of goods sold