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Documentation Index

Fetch the complete documentation index at: https://mintlify.com/odoo/documentation/llms.txt

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Odoo Inventory is both an inventory application and a warehouse management system. The app lets you manage lead times, automate replenishment, configure advanced multi-step routes, and maintain complete traceability from supplier receipt to customer delivery. Because Inventory shares product and partner data with Sales, Purchase, and Manufacturing, every stock movement is triggered automatically by business events rather than manual entries.

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Warehouses and Locations

Warehouses represent physical storage sites with a postal address. Each warehouse can be configured with its own inbound and outbound routes—1-step (direct receipt/delivery), 2-step (with a quality or packing area), or 3-step (with dedicated input/output zones)—to match your physical fulfillment process.

Warehouses

Create one warehouse per physical site. Configure multi-step routes on each warehouse independently so high-volume sites use pick-pack-ship while smaller sites use direct shipping.

Locations

Locations are sub-divisions within a warehouse—shelves, bins, quality control zones, packing tables. Organize stock precisely and enable put-away rules to direct incoming goods automatically.

Location Types

Seven location types classify every storage area: Internal, Vendor, Customer, Inventory Loss, Virtual, Transit, and Production. Only Internal locations count toward on-hand stock valuation.

Inter-Warehouse Transfers

Replenish a secondary warehouse from the main warehouse using automatic resupply routes. Odoo creates the pick-and-ship transfer pair without manual intervention.
Use virtual locations such as Quality Control or Packing Zone to represent intermediate steps in your fulfillment process without those products appearing as available stock to salespeople.

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Receipts and Deliveries

All stock moves in Odoo—receipts from suppliers, deliveries to customers, internal transfers, and returns—are tracked as transfer records. Each transfer references an origin document (purchase order, sales order, or manufacturing order) and moves products between two locations.

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Processing a Vendor Receipt

1

Confirm the purchase order

When a purchase order is confirmed in the Purchase app, Odoo automatically generates a receipt transfer in Inventory with the expected products and quantities.
2

Validate the receipt

Open the receipt from Inventory → Operations → Receipts. Scan barcodes or enter received quantities. If the received quantity differs from the ordered quantity, Odoo creates a backorder for the remainder.
3

Put away stock

If put-away rules are configured, Odoo suggests destination locations based on product category, storage conditions, or capacity. Accept the suggestion or override it manually.
4

Update valuation

For products using Average Cost (AVCO) or Standard Price valuation, Odoo recalculates unit cost immediately upon receipt validation.

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Processing a Customer Delivery

1

Confirm the sales order

A confirmed sales order generates a delivery order automatically. Reservations are applied based on the configured reservation method (at confirmation, before scheduled date, or manually).
2

Pick and pack (multi-step)

In 2-step or 3-step warehouses, workers first complete a pick operation to move goods from storage to a packing zone, then complete a separate pack or ship operation.
3

Validate and ship

Mark quantities as done and validate the delivery. Odoo updates stock levels, generates a delivery slip, and—if a shipping carrier is configured—sends tracking information to the customer automatically.

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Inventory Adjustments

Keep on-hand quantities accurate with periodic or cycle-count inventory adjustments.

Physical Inventory

Run a full inventory count from Inventory → Operations → Physical Inventory. Count all products at once and apply adjustments in a single validated entry.

Cycle Counts

Schedule automated cycle counts for specific locations or product categories so high-value or fast-moving items are counted more frequently without stopping warehouse operations.

Barcode Scanning

Use the Barcode app on a handheld device or tablet to count products by scanning. Quantities update in real time, reducing transcription errors.

Scrap

Move damaged or expired products to a scrap location via Inventory → Operations → Scrap. Scrap moves are valued and posted to the Accounting app automatically.

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Lot and Serial Number Tracking

Odoo supports two traceability methods—lots for batch tracking and serial numbers for individual item tracking—both configurable per product.
A lot groups multiple units of the same product that share a common attribute—such as a production batch, a supplier shipment, or an expiry date. Lots are ideal for food, pharmaceuticals, and textiles.
  • Assign lot numbers on receipt or manufacturing
  • Filter inventory by lot to locate all units in a batch
  • Set expiry dates on lots for FEFO (First Expired, First Out) removal strategies
  • Trigger product recalls by tracing a lot back through all receipts, internal moves, and deliveries
Enable Lots & Serial Numbers in Inventory → Configuration → Settings → Traceability before assigning traceability to products. Once enabled, you can configure each product individually to require lot or serial tracking on receipts, deliveries, or both.

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Reordering Rules

Reordering rules automate stock replenishment so you never run out of critical products.

Automatic Reordering Rules

Set a minimum (reorder point) and maximum stock quantity. When on-hand stock falls at or below the minimum, Odoo automatically generates a purchase order or manufacturing order to restock to the maximum.

Manual Reordering Rules

Like automatic rules but generate suggested orders on the Replenishment Report for a buyer to review and approve before purchase orders are created.

Make to Order (MTO)

Activate the MTO route on a product to trigger a purchase or manufacturing order the moment a sales order for that product is confirmed—bypassing stock and replenishing on demand.

Master Production Schedule

Use the MPS dashboard to plan replenishment over a rolling horizon based on sales forecasts, smoothing out demand peaks and reducing safety stock requirements.
Use Just-in-Time logic alongside reordering rules to prevent overstocking. JIT replenishment targets the exact quantity needed to meet upcoming demand rather than topping up to a fixed maximum.

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Inventory Valuation Methods

Odoo supports three costing methods for inventory valuation, configurable per product category.
Products are valued at a manually set standard cost. Variances between the standard cost and actual purchase price are posted to a price difference account in the Accounting app. Best for manufactured goods with predictable costs.
The unit cost is recalculated as a weighted average each time a new receipt is validated. AVCO is the most common method for purchased goods with fluctuating supplier prices.
Each receipt creates a cost layer. When goods are delivered, Odoo consumes the oldest cost layers first. FIFO gives the most accurate cost of goods sold when prices change over time and is required for certain accounting standards.

Landed Costs

Allocate additional procurement costs—freight, customs duties, insurance—to the value of received products. Landed costs are split across product lines by quantity, weight, or volume.

Valuation by Lot

When using FIFO, Odoo can maintain separate cost layers per lot, giving precise cost tracking for batches purchased at different prices.

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