I have a difference between the value of my stock in the Inventory module and the value on the Balance Sheet. I can't work out where this difference is coming from. Could you please help me? Has anyone had this problem before?
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I am familiar with this 'frustration'. It can come from several different reasons. What costing method you use and the Odoo version you are running. Odoo has changed how they calculate product cost from version 14 to 16 to 17.
So one reason is that if you have updated from version 14 to 16 or 17, you might have a difference in the balance account coming from the older version.
If you use AVCO or standard cost (standard cost is barely not used anymore), the difference should not appear.
If you are using FIFO costing, look at the report Valuation in inventory. Select filter "Remaining qty". There you find the details of product cost by transaction.
The product cost in the stock report should be an average of these postings. In theory this should be the same as posted in the balance sheet. But there are som weaknesses. I.ex. from rounding in calculation of unit costs. Specially if you trade in different currencies. From purchasing the cost on goods receipt is coming from the currency rate at day of goods receipt. Then when you post the invoice the rate changes. From V16 the cost difference in the invoice correct the product valuation. But you will see rounding differences.
While the balance sheet is a sum of all accounting documents, the product cost is a result of total value in the accounting doc divided by qty.
As Lars explains, the Inventory Valuation is really like a sub ledger that needs to be reconciled to ensure that it matches the Balance Sheet.
If someone receives 9 items in the Warehouse, but someone else pays for 10 items in a Vendor Bill, they will be different. Same thing goes for someone who receives 10, so 10 are paid for, but then in the Warehouse they return 1 but there is no corresponding Credit in Accounting.
It can also happen that someone changes the cost on a product without a corresponding entry to revalue the balance sheet for that product.
Ray.
Thanks for remarks.
The return is really something I think should be taken care of. Since the return reference the receipt and the purchase order, it should be possible to find the original value on receipt and post the same value for the return.
This is espically with foreign currency since the exchange rate is different, but with FIFO costing and purchase of commodities where prices fluctuate a lot this can be quite a big problem. (We had cases where a huge receipt was entered to the wrong PO. All had to be returned. Big price difference in the return. Could not be corrected with Landed Cost either.)
Another case came to my mind: With purchase in foreign currency, we get different rate in the vendor bill from the goods receipt. This difference is posted to Exchange difference account by deafult. But really the correct cost of product is the currency rate at paying the vendor bill. But an improvement would be that the currency rate at posting the vendor bill is used to correct the product cost.
Remark: I have not looked into V17 on this.
(I think I forward this remark to Thomas Deval.)
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