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What is consumable products and stockable products?

By
Udari
on 3/28/14, 5:06 AM 12,329 views

What is consumable products and stock able products?

2

Nehal

--Nehal--
2090
| 5 2 8
Ahmadabad, India
--Nehal--
Nehal
On 3/28/14, 5:46 AM

A consumable is a physical product which is treated like a stockable product, with the exception that stock management is not taken into account by the system. You could buy it, deliver it or produce it but OpenERP will always assume that there is enough of it in stock. It never triggers a procurement exception.

The demo data show several types of products, which gives a good overview of the options.

In our company, some software are purchased from third parties in order to generate revenues in additions to perishable goods. Since software generate revenue we need to consider the cost of purchasing software in cost of sales. Can it be categorized as a consumable product in that case?

Udari
on 3/28/14, 5:51 AM
1
Bart Criel
On 3/28/14, 5:22 AM
  • 'Consumable' products: are supposed to be always there. Examples can be staples, nuts, bolts, tape, ...

  • 'Stockable' products: are subject to the full stock management system (minimum stock rules, automatic procurement, ...). Examples can be (depending on your industry) hard disks, assembled computers, cars, ...

Can we categorize software as a consumable product?

Udari
on 3/28/14, 5:48 AM

In our company, some software are purchased from third parties in order to generate revenues in additions to perishable goods. Since software generate revenue we need to consider the cost of purchasing software in cost of sales. Can it be categorized as a consumable product in that case?

Udari
on 3/28/14, 5:51 AM

I would not do that. When you consider the software as stockable goods, the stock management system will create purchase orders etc based on configuration settings. If you consider the software as consumables, the system won't issue purchase orders for the software. As far as I know, this choice has nothing to do with cost price and margin calculation: this will/should work for both categories.

Bart Criel
on 3/28/14, 11:59 AM

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Asked: 3/28/14, 5:06 AM
Seen: 12329 times
Last updated: 8/31/16, 4:02 AM