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Inventory on Hand Vs System On Hand Qty Mismatch - What is the Solution?

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Tenth Planet

Environment: Odoo Version: 16.0/17.0 (Enterprise/Community), Desktop: Ubuntu 20 OS, Module: Inventory


Business Requirement:

What are the best inventory policy that needs to be followed for maintaning (matching) System Qty Vs Physical qty for a Retail Store?


Use Case:

Due to different reasons System Qty and Physical Qty in our Retail Store gets mismatched.  Some of the reasons could be receiving stock without entering the Goods Receipt, due to wrong stock adjustments, due to wrong inventory transfers, due to theft, due to wastage, etc.

For e.g., System stock available is 50 qty.  Stock received physically is 100 qty.  Goods Receipt note not yet entered.  But users keep the 100 qty also in the shelf for sales.  Now customer comes and buys 55 qty.  In this case the system qty goes to negative.


Questions:

1. What are the best inventory policies that can be followed as a SOP to avoid these mismatches?

2. Is there any Odoo system level validation or alerts available that can be used to avoid negative stock?


Regards

Odoo@tenthplanet

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Eva@Ybo Services
Best Answer

Hello,

The questions you’re asking aren’t specific to ERP systems. All ERPs will have discrepancies if people steal, don’t use the system, or misuse it.

In Odoo, the POS is connected to the inventory, and it automatically deducts from the inventory. By default, the system doesn’t check if the goods are in stock because it’s designed for customers to bring goods to the counter, so the goods are considered to be in stock.

To prevent negative stock levels, you need to install a module that checks the quantity in stock from the POS and displays an error message if it falls below zero.

To reduce the mismatch, the most crucial factor is your local organization and thorough checks and counts as frequently as possible. It’s also mandatory to have one person responsible for the inventory whose pay is tied to the accuracy of the stock. You’ll be surprised at how much this helps.

As a final tip, in Odoo versions before 18, the system displays the quantity during counting. You’ll need to deactivate this feature via a module to prevent users from expecting a certain outcome.

Good luck,

Eva P.

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