Product Cost Valuation
Automatic inventory costing from vendor bills (Standard, AVCO, FIFO)
Overview
This module keeps product costs aligned with posted vendor bills and stock operations. It supports the three costing methods configured on the product category: Standard Cost, Average Cost (AVCO), and FIFO.
It also integrates with Landed Costs and two-step warehouse receipts (transit → internal), so the inventory valuation report shows correct unit costs and values.
Key Features
Standard Cost
- Stock moves valued at fixed standard_price
- Inventory report uses the same standard unit cost
- Vendor bill price differences post to the Price Difference account
Average Cost (AVCO)
- Weighted average updated on each receipt
- Deliveries valued at the current average without changing it
- Each receipt priced from its own vendor bill line
FIFO
- First-in-first-out layer simulation
- Deliveries consume the oldest layers first
- Remaining stock valued from open FIFO layers
Landed Costs & Two-Step Warehouses
- Landed costs update product valuation after validation
- Incoming transfers (WH/IN) visible on landed cost pickings
- Transit → internal receipts included in costing
Screenshots
Configuration
- Install Purchase, Inventory, and Landed Costs (dependencies are installed automatically).
- Set the costing method on each Product Category (Standard, Average, or FIFO).
- For Standard Cost, configure the Price Difference Account on the category.
- Post vendor bills linked to purchase receipts; costs update automatically.
- Optional: run Action → Update Cost from Vendor Bills on products to rebuild costs from history.
Compatibility
- Odoo 19.0 Community Edition
- Requires perpetual (real-time) inventory valuation for full accounting integration
- Works with purchase receipts, vendor bills, and landed costs
Support
For support requests, please contact m.galal2010m@gmail.com.
Product Cost Valuation
This module synchronizes product costs with posted vendor bills according to the product category costing method.
Costing methods
Standard Cost
- Receipts and deliveries are valued at standard_price.
- The inventory report shows the same standard unit cost.
- Differences between bill price and standard price are posted to the Price Difference account on the product category.
Average Cost (AVCO)
- Each receipt adds quantity × bill price to inventory value.
- New average = inventory value ÷ on-hand quantity.
- Deliveries reduce value at the current average; the unit cost stays unchanged until the next receipt.
FIFO
- Each receipt creates a cost layer at the purchase price.
- Deliveries consume the oldest layers first.
- Remaining stock is valued from open layers.
Landed costs
After a landed cost is validated, AVCO and FIFO costs are recomputed. Landed cost allocated to stock still on hand is reflected in the inventory report.
Two-step warehouses
Receipts from transit to internal stock are included in costing even when Odoo does not mark them as incoming moves (is_in).
Manual rebuild
Use Action → Update Cost from Vendor Bills on product variants to replay costing from posted bills and stock history.
Support
Odoo Proprietary License v1.0 This software and associated files (the "Software") may only be used (executed, modified, executed after modifications) if you have purchased a valid license from the authors, typically via Odoo Apps, or if you have received a written agreement from the authors of the Software (see the COPYRIGHT file). You may develop Odoo modules that use the Software as a library (typically by depending on it, importing it and using its resources), but without copying any source code or material from the Software. You may distribute those modules under the license of your choice, provided that this license is compatible with the terms of the Odoo Proprietary License (For example: LGPL, MIT, or proprietary licenses similar to this one). It is forbidden to publish, distribute, sublicense, or sell copies of the Software or modified copies of the Software. The above copyright notice and this permission notice must be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
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