FIFO, AVCO, Standard — Manufacturing Costs | Odoo Inventory – CBMS Odoo ERP

FIFO, AVCO, Standard — Manufacturing Costs | Odoo Inventory – CBMS Odoo ERP

author
2
0 minutes, 34 seconds Read

Learn how Odoo calculates inventory value using Standard Price, Average Cost (AVCO), and FIFO in manufacturing. This tutorial explains how each costing method works and how it affects your inventory valuation—so you can talk through the right choice with your accountant.

0:00 – Introduction
0:45 – Setting a Costing Method (Standard Price)
2:53 – Average Cost (AVCO)
5:39 – First In First Out (FIFO)
8:40 – FIFO and Returns
10:21 – How to Choose
11:01 – Conclusion

**Check out more Odoo tutorials**
– Production Cost:

– Sales order to manufacturing order: 

**App documentation**
– Inventory valuation: 

– Manufacturing costs: 

**See what Odoo can do for you!**
– Schedule a demo: 
– Start a free trial: 

#FIFO #AVCO #Standard #Manufacturing #Costs #Odoo #Inventory

Similar Posts

2 Comments on FIFO, AVCO, Standard — Manufacturing Costs | Odoo Inventory – CBMS Odoo ERP

  1. avatar
    @m.nurochmansuhud2030 says:

    Bismillah,

    Hi, I'm Nurochman, an accounting staff at a catering company in Indonesia. We use the Odoo 15.0-20240124 ERP System. We're constantly experiencing issues with the inventory module, where the average price calculation is constantly changing randomly. Sometimes it changes by a small amount, sometimes it changes significantly when the item is shipped or used. Can you help me? We use this system through an IT service provided by a vendor in our country, and our IT vendor is also having difficulty solving this problem. We've been experiencing this problem for over a year and haven't found a solution yet. Our temporary solution is to periodically check all our inventory, identify which items experience random average price changes (unreasonable and not according to the average price calculation rules), and then recalculate them using the provided feature (I'm not sure if this is a built-in Odoo feature or a modification from the IT Vendor, as I'm a novice in ERP systems). After implementing a temporary solution, the average price returned to the proper average price calculation rules. However, this temporary solution procedure was very time-consuming, and we are concerned that it will become a significant obstacle for our company in the future, considering our continued growth and the increasing amount of data input.

    Thank you in advance.

Comments are closed.