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