But problem is we have already have inventory with stock valuation amount?

Inventory Valuation in Odoo

There are two types of inventory valuation in Odoo:

Manual Valuation:

No automatic journal entries are created.

Stock moves (receipts/deliveries) do not affect accounting.

You post accounting entries manually (usually at period-end or after stock counts).

Automated Valuation:

Every stock move (PO receipt, delivery to customer, internal transfer) automatically posts a journal entry.

Inventory value is reflected in the Balance Sheet (Assets → Inventory).

🛠️ Steps to Move from Manual → Automated Valuation
1. Preparation

Make sure accounts are properly configured:

Stock Valuation Account (Balance Sheet, Asset).

Stock Input Account (temporary account used during receipts).

Stock Output Account (temporary account used during deliveries).

In Products or Product Categories, set:

Inventory Valuation = Automated.

Costing Method = Standard / FIFO / Average (depending on your policy).

2. Define a Cut-off Date

Choose the transition date for automation. Example:

Until 31 August → manual valuation.

From 1 September → automated valuation.

3. Transition Journal Entry

Before switching:

Perform an Inventory Adjustment to confirm stock quantities.

Calculate the total stock value (based on your manual records or stock count).

Post a manual journal entry for the opening balance:

Dr Inventory (Balance Sheet Account)
Cr Inventory Opening / Adjustment Account

👉 This establishes the opening inventory balance in your accounting system.

4. Switch in Odoo

Go to Inventory → Configuration → Product Categories.

Open the product category.

Change Inventory Valuation from Manual → Automated.

Assign the relevant accounts (Valuation / Input / Output).

From this point, all new stock moves will generate journal entries automatically.

5. Verification

Test by creating a Purchase Order Receipt or Delivery Order.

Check the Journal Entries in Accounting.

Ensure that balances match with stock movements.

⚠️ Important Notes:

Switching does not back-post journal entries for past stock moves.

You must record an Opening Balance Journal Entry on the cut-off date to align stock and accounting.

📊 Example:

On 31 August, physical inventory value = 100,000 EGP.

Manual entry:

Dr Inventory (100,000)
Cr Inventory Opening (100,000)

From 1 September, automated valuation is enabled:

New receipts → increase stock automatically.

New deliveries → decrease stock automatically.