Costing: FIFO | Odoo MRP – CBMS Odoo ERP

Costing: FIFO | Odoo MRP – CBMS Odoo ERP

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0 minutes, 26 seconds Read

In this video, learn how to use the First In First Out (FIFO) costing method through the Manufacturing Application.

0:00 – Introduction
1:13 – Check Components in Stock
2:48 – MO for Table 1
4:08 – MO for Table 2
6:56 – Sell Table 1
8:09 – Inventory Valuation (FIFO)
9:13 – Check Product Cost
9:35 – Conclusion

Other lessons related to this video: 
Costing Overview:
Costing: AVCO:
Costing: Standard Price:

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4 Comments

  1. avatar
    @cparker4486 says:

    Now for a useful comment.

    What about special pricing from a supplier due to, for example, a contract with the supplier and customer?

    Normally, the flow goes just like you demonstrated in this video. But what happens when I can purchase supplies at a lower cost because I'm selling those supplies to a specific customer? (Why the supplier would offer a lower cost is not significant to the scenario.) With Odoo's strict FIFO system, a sale to my special pricing customer is not guaranteed to use the supplies purchased for them. Instead, it evaluates at FIFO.

    Other ERP systems handle this by keeping track of reservations between SO and PO: when a PO is made from an SO, and cost is manually changed on the PO, the system will use the cost from that PO when fulfilling the SO.

    Without taking this into account, margins get all out of whack. One SO could look like it lost money while another SO could look like it made a larger-than-usual profit.

    This is currently holding us back from adoptiong Odoo but the last time I tested this was about nine months ago. Has anything changed?

  2. avatar
    @ConsultingjoeOnline says:

    This is great and all but what about new customers to Odoo that already use FIFO. Apparently it is not possible to import your FIFO inventory/costs into Odoo. Odoo themselves say you just need to average your costs then Odoo can do FIFO from there on. That is just not acceptable. Sad the sales guys sell the world until it comes to implementation. We cannot be the only ones with this need/issue. (Tried moving from Fishbowl just to find Odoo has different limitations – they take ~$70,000+ and just say, " all sales are final ")

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