Regarding the new valuation method, how do we go about investigating the amounts shown in the Stock Variation section?
I can't upload my screenshot but here's one from the Odoo documentation: 
What is that $385 composed of?
Thanks!
Odoo is the world's easiest all-in-one management software.
It includes hundreds of business apps:
- CRM
- e-Commerce
- Boekhouding
- Voorraad
- PoS
- Project
- MRP
Deze vraag is gerapporteerd
1
Beantwoorden
726
Weergaven
There is no drilldown report showing what the pending transactions are - there are multiple places where this value comes from - it is not just pending transactions (also known as anticipated variations - although that is the bulk of the balance).
How do you interpret the Inventory Valuation Report?
Initial Stock: The inventory value recorded in your General Ledger (Balance Sheet) at the start of the period.
Ending Stock: The inventory value from the Inventory App (a Subledger) at the end of the As Of date.
Stock Variation: The difference between those two.
Note: If your initial or ending stock is ever negative, this just means you sold more inventory than you entered Bills for. You have more Customer invoices crediting your inventory than Vendor Bills debiting it.
The variation number is the amount the closing entry needs to post to make the General Ledger agree with the Inventory App Subledger.
The variation is the sum of:
1) Anticipated Variations (Timing Differences) - these are amounts you can accrue for via the Bills To Receive; Billed Not Received; Invoices To Be Issued; and Invoiced Not Delivered Menus. Generate each applicable accrual entry to post to update your Balance Sheet at the end of the period to account for these variations.
If you receive $100 worth of Inventory without recording a Vendor Bill, you anticipate a future inventory debit of $100.
If you deliver $100 worth of Inventory without recording a Customer Invoice, you anticipate a future inventory credit of $100.
2) Unanticipated Variations (Value Differences) - these are amounts related to adjustments to cost of goods for inventory sold before the price was confirmed with a vendor bill.
If you receive a purchase order for 10 units @ $10, sell 5 ($50 cost of goods) then record a Vendor Bill for 10 units @ $11 - you need to account $5 more of cogs.
If you receive a purchase order for 10 units @ $11, sell 5 ($55 cost of goods) then record a Vendor Bill for 10 units @ $10 - you need to account $5 less of cogs.
Period End Close Process:
A. Generate your Accrual Entries to post the anticipated variations (timing differences).
B. Generate the Closing Entry to post the unanticipated variations (value differences) and match your balance sheet with the Inventory App Subledger.
Any final balance in your Inventory - Variation account represents a P&L adjustment for cost of goods. You can reclass it so the ending period variation balance is $0.
Note: we recommend adjusting product cost price or product total value - due to damage, obsolescence or low demand - on your Balance Sheet at the same time you make the same adjustments via the Inventory App Subledger (either by updating the cost price on the product or using the Adjust Valuation wizard after clicking on the Total Value in the Stock Report) - so you can always keep on top of Impairment Variations. This is not strictly necessary because Odoo will account for them by detecting the difference between the Balance Sheet and the Inventory App Subledger, but it is a best practice to recognize these changes as soon as possible since there is no real need to delay the postings - so you can recognize the expense and update your Inventory App Subledger at the same time.
Geniet je van het gesprek? Blijf niet alleen lezen, doe ook mee!
Maak vandaag nog een account aan om te profiteren van exclusieve functies en deel uit te maken van onze geweldige community!
Aanmelden| Gerelateerde posts | Antwoorden | Weergaven | Activiteit | |
|---|---|---|---|---|
|
1
nov. 25
|
889 | ||
|
|
1
nov. 25
|
921 | ||
|
3
nov. 25
|
444 | ||
|
|
0
nov. 25
|
28 | ||
|
1
apr. 21
|
5850 |
I am going to come back with a better answer to this (great) question.
Thank you, Ray! Very much appreciated.
To be frank with you, my Controller and I were a bit surprised and concerned to find out there's no drilldown report showing what the pending transactions are.
(I'm not able to add a comment to your reply so I'll try my comment here as a reply.)
Is this true for Perpetual?
My answer was from the perspective of US Perpetual (at Invoicing). The closing entry can be automated but the accrual entries are part of the closing process (and were before Odoo 19).
What is the Inventory Variation account ? I'm trying to find the correspondence with my chart of accounts.
Or is it an Odoo specific account ? Sort of like the Bank Suspense account ?
You need to create this account. It is a normally a Balance Sheet account (current asset) so it can be reviewed at month end to ensure it is empty.
Some Users, after they understand how everything works and confirm the only remaining balance is COGS will change it to a P&L Cogs account.
It is a suspense account of sorts. More of a clearing account.
What Odoo 19 calls “Inventory Variation” is broadly analogous to accrual or clearing accounts used in other ERPs (e.g., GR/IR in SAP, Inventory variance accounts in NetSuite).
Thanks for your answer. I will create a clearing account, and when we're more stable, I'll switch it to a COGS account.
One last question, on the GL Account, the contextual help says that the Variation Account is only useful for continental, is this an error ?
Please update your Odoo source. That screenshot tells me you are using an older build (the placeholder is not correct) and several significant bugs have also been fixed in the last few weeks.
Ah ok thank you!