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RE: Inventory revaluation, Quants and product price

Inventory revaluation, Quants and product price

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Re: Inventory revaluation, Quants and product price

by
Open Source Integrators, Gregory A Mader
- 09/02/2016 22:01:24
HI Jordi,


The question raised is correct. We have seen this issue at a customer site. We had to reset the costs on the quant and then redo the value and adjust the GL with a single adjusting entry.

This process could be automated easily if needed,but I think it would be dangerous in the wrong hands. 

Greg



On Tue, Feb 9, 2016 at 12:07 PM, Jordi Ballester Alomar <jordi.ballester@eficent.com> wrote:
Dear accounting experts,

We're addressing the topic of inventory revaluation. That is, you don't like the value of a product (e.g. obsolescence, solve issues in valuation, wrong PO price, etc..), and you need to change it.

In Odoo you are offered the option to change the standard price of the product, and under real time valuation this produces a corresponding inventory posting entries.

But since Odoo manages Quants, and each Quant keeps it's purchase cost (and hopefully manufacture cost in we can add support for that soon), the standard price field in the product is irrelevant as a stored field, because should really be the result of the cost of the quants. 

Under the FIFO costing, the price of the product to be shown would be the cost of the first quant for that product. In reality Odoo is using FIFO costing method because it considers the cost of the quant to generate the accounting entries in stock moves...

If you are to undergo an inventory revaluation, wouldn't you need then to revaluate the quants, and not the product standard prices? Revaluating a quant would as a consequence generate the corresponding accounting entries for inventory revaluation.


Regards,

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