For any trading or manufacturing business, it is a necessity to compute the cost of the product consumed to get the value of the current inventory available in the Warehouse. There are different methods available to compute the product cost, and the valuation of the inventory depends on that. Odoo has three different methods to compute the cost of consumed products--Standard, Average, and Real-time. It has valuation methods, Periodic (Manual) and Perpetual (Automated). The inventory valuation can be computed automatically in Warehouse, but it can be linked to the balance sheet and profit and loss when it is set to Perpetual (Automated), or else accounts have to be updated manually when it is set to Periodic (Manual).
Let's see all the costing methods, how they can be activated, how they work, and computes. Also, let's see how to link inventory valuation with accounting, either manually or automatically. You can decide which method to use to compute...