Stock valuation dashboard¶
When a company has physical assets, such as inventory, they often want to know approximately how much has been spent on these goods, or how much they are worth at the moment. This process of assigning a monetary value to account for inventory is known as stock valuation.
This value is often reported for accounting purposes. For instance, an insurance company may want to know the value of goods stored in a warehouse, in the event of a flood or fire.
Stock valuation typically utilizes one of two accounting systems:
Perpetual: The inventory is constantly (perpetually) being updated, and the value is constantly changing.
Periodic: The inventory value is checked on an occasional (periodic) basis, and the value is set at this occasional time.
Using tracked inventory in Odoo necessitates a perpetual inventory accounting system because of the need to know when and where inventory exists, and how much of it is available or forecasted. There are a few common stock valuation methods used in Odoo: standard price, average cost (AVCO), and first in, first out (FIFO) accounting. It is important to know that the valuation method chosen for a product impacts the calculation of several fields in the stock valuation reports.
Open the dashboard¶
Odoo’s Stock Valuation dashboard displays the financial value of all tracked inventory, according to each product’s stock valuation method. This report can provide insights into potential issues in the supply chain, such as sunken purchase costs or delays in profitability. To access the dashboard, go to .
Important
The menu in Inventory is only accessible to users with admin access.
This dashboard has three different views, or inventory reports — list view (i.e. the default stock valuation report), pivot view (i.e. the stock aging report), and graph view. Each view can be customized with different fields to break down inventory valuation by product, operation type, date, or company.
All three views can be filtered by various fields. To apply filters, click into the search bar at the top of the report, or click the drop-down arrow next to it. For example, selecting the filter Has Remaining Qty will show only products that are currently in stock.
List view: stock valuation¶
By default, the Stock Valuation dashboard displays in list view, represented by the (list) icon. This report shows a detailed record of stock movements and their valuations.
Configure¶
The following columns are displayed by default:
Date: the date and time when the stock move was created. The valuation report is sorted by this field by default, emphasizing the importance of time when valuing inventory. To sort the report by a different column, simply click on the column title.
Reference: the reference document associated with this stock move (e.g., a warehouse receipt, a delivery order, or a manual inventory adjustment).
Product: the product that is being moved and valued.
Quantity: the number of units by which this product’s stock has increased or decreased in this particular stock move.
Total Value: the value of the product’s stock in this particular stock move, calculated by multiplying the Quantity and Unit Value.
Note
If a Reference document includes several goods, there will be a separate line item generated on the report for each good.
There are additional fields that can be added to this view to provide more insight into the stock’s valuation. To add fields, click the (adjust) icon, and select the desired fields:
Lot/Serial Number: the uniquely identifying lot or serial number for this product.
Company: for businesses that operate with multiple companies, this field displays the company by which this stock move took place.
Remaining Quantity: the number of units remaining for this valuation of the product, after demand has been accounted for (even from other stock moves). This field can be especially helpful for FIFO and AVCO accounting, as it conveys which units of stock came into a warehouse first and the value of said stock.
Unit Value: the cost of one unit of the product for the company (not the price to consumers).
Description: a description of the reason for this stock valuation (typically, a stock move has occurred). By default, this field is set as the concatenation of the Reference and Product fields. However, the field may also display other important messages for this line item, such as a note stating that the line item is an adjustment due to a change in the product’s inventory valuation method.
Remaining Value: the value of this product’s current stock levels for this particular stock move, after demand has been accounted for. Along with Remaining Quantity, this field can be especially helpful for FIFO and AVCO accounting, as they convey which stock came into a warehouse first and the value of said stock.
Tip
Some of these settings may not appear unless first enabled in Odoo’s :doc:`Settings <../../../general>` application.
Stock valuation layers (SVLs)¶
Each line item in the Stock Valuation report represents a record in Odoo’s system known as a stock valuation layer (SVL). SVLs are generated when products move in a way that impacts their stock valuation. Specifically, the stock moves that generate SVLs are warehouse receipts, deliveries, dropshipping orders, and dropshipping returns. These stock moves must first be validated (by clicking the Validate button) for the SVL to be created.
If a product’s inventory valuation method changes on the product form, new line items are generated on the Stock Valuation report to reflect the resulting SVLs. For example, if the valuation method changes from standard price to either AVCO or FIFO accounting, revaluation entries will be automatically posted to reflect the change in pricing for goods that remain in stock. One entry will be negative to “remove” the old pricing, and the second entry will be positive to record the new pricing. These entries are connected to journal entries in Odoo’s Accounting app.
Below is an example of what the Stock Valuation table shows when a few stock moves have occurred for a product using standard price accounting.
Conversely, the following image depicts what the Stock Valuation Report table might look like after a product has switched from standard price to FIFO accounting.
Example
The Remaining Value and Remaining Quantity fields are derived from what occurs at the SVL level in Odoo and, as such, are better understood with an example.
Frankie’s Consignment Shop buys sweaters at the cost, or Unit Value, of 5.00
dollars. For the first time, Frankie’s purchases and receives a Quantity of 100.00
sweaters in one stock move, then re-sells and delivers -10.00 sweaters in a second stock move.
In the first stock move line item, the Remaining Quantity will change from 100.00
to 90.00, once the second stock move is recorded. This change reflects that, although 100
sweaters were originally purchased, only 90 of those sweaters remain in stock and should be
counted in the valuation. Similarly, the Remaining Value will drop from $500.00 to
$450.00. The Total Value will remain at $500.00, regardless of subsequent
transactions.
On the other hand, the Remaining Quantity of the second stock move line item will be
recorded and remain at 0.00 because the quantity of -10.00 was sold. In the system, because
the SVL was a sale, there is no stock left that needs to be valued
from that transaction.
Change the valuation date¶
To see the valuation of stock moves at a specific date and time, click the Valuation At Date button, located in the top-left corner of the Stock Valuation page. The report will show the Quantity and Total Value of each stock move.
Note
The Remaining Quantity and Remaining Value of the stock moves will not be point-in-time for any dates chosen in the past. The stock moves shown when selecting a past date will still display the current on-hand quantity and value of the products.
Example
A business has 100 sofas in stock on January 1st and sells 20 of those sofas on February 1st. The
Remaining Quantity of the SVL will drop from 100.00 to
70.00 on February 1st. If no other stock moves take place, and on February 1st, the
Valuation at Date is selected as January 1st, the Remaining Quantity
will still show as 70.00.
Pivot view: stock aging¶
From the Stock Valuation dashboard, access pivot view by clicking the (pivot) icon. This view is essentially a stock aging report, and it shows the on-hand quantity and value of inventory by purchase date, which can help monitor products with expiration dates.
Configure¶
By default, the pivot view shows the value of all product categories by day and month. Clicking the (plus) icon in each column or row will reveal a drop-down list of options to create a more granular breakdown of the inventory valuation. The drop-down options include: Product, Lot/Serial Number, Product Category, Date, Company, or Add Custom Group Clicking the (minus) icon collapses the field back to an empty state.
In the table, the Remaining Qty column displays the number of on-hand items, and Remaining Value displays the total cost of purchasing these items.
Graph view¶
The stock value can be depicted graphically by clicking the (graph) icon. By default, the graph is displayed in line chart view and filtered to show the cumulative total of all inventory value over time in Odoo.
At the top of the report, a bar chart or pie chart view can be selected instead.
See also