Skip to Content
Menu
This question has been flagged
1 Reply
2626 Views

Purpose of the document:

This document showcases Odoo's automated tracking of the cost of goods sold (expenses) during the creation of an invoice for the client.


Configuration:

1.      This document demonstrates United States, Version 17.0 and Anglo-Saxon accounting.

What is Anglo-Saxon accounting?

2.     Product categories setting is FIFO (first in first out) in the costing method and Automated in the inventory valuation.

[V17][V16.3+] Where is the inventory valuation in the product category?


3.     Create a product A in the product category: FIFO/ Automated.



Avatar
Discard
Author Best Answer

General workflow

Purchase process

1.      Create and confirm a purchase order for product A, price at $800.

2.      Receive the product in the inventory.

3.      Create a vendor bill.


Sales process

4.      Create and confirm a sales order for product A, sell price is at $1200.

5.      Deliver the product to the client. Odoo reduces inventory quantity and value.

6.      Create the invoice for the client. Odoo automatically calculated the cost of goods sold ($800)



Workflow and accounting impact

Purchase process

1.      Create and confirm a purchase order for product A, price at $800.



2.      Receive the product in the inventory. (WH/IN/00013, P00022)


Odoo automatically creates the journal entry due to the automated setting in the product category.
STJ/2024/07/0001 (WH/IN/00013, P00022)

Dr. Stock account $800, Cr. Stock interim received account $800.

(The user can modify the GL account in the product category, see configuration #2)



3.      Create a vendor bill.

Journal entry: Dr. Stock interim received account $800, Cr. Account payable $800.

 BILL/2024/07/0005 (P00022)



Sales process

4.      Create and confirm a sales order for product A, selling price is $1200.




5.      Deliver the product to the client. Odoo reduces inventory quantity and value.

WH/OUT/00036 (S00084)



Odoo automatically creates the journal entry due to the automated setting in the product category.

Cr. Stock account $800, Dr. Stock interim delivered account $800.

(The user can modify the GL account in the product category, see configuration #2)

STJ/2024/07/0002 (WH/OUT/00036 (S00084))




6.      Create the invoice for the client. 
Odoo automatically calculated the cost of goods sold ($800)

Journal entry: Dr. Account receivable $1200, Cr. Product sales (income) $1200. Cr. Stock interim received account $800, Dr. Expense $800.

(The user can modify the GL account in the product category, see configuration #2)

INV/2024/00039 (S00084)



Video
https://www.youtube.com/watch?v=lxycr9Ef8bQ

Avatar
Discard
Related Posts Replies Views Activity
2
May 25
4260
1
Jan 25
2220
1
Feb 25
2218
1
Aug 24
2311
1
Jul 24
3849