Odoo 13 Community Edition

Inventory Management

The inventory management module is an essential module that deals with the sourcing, storing, and selling of both finished products and raw materials. Inventory management includes the facets like supervising and controlling purchases from the suppliers, maintaining and arranging the storage of stocks, scheduling the inventory tasks, managing the amount of product for sale, and tracking orders.

It is a complicated process to manage inventory without digital support. Here comes the importance of Odoo inventory management. Using the advanced business management application Odoo, one can manage all the complicated tasks with few clicks. Without a smart approach, the business will be a mess and chaos. Odoo promises its users an effective, sufficient, reliable, and simple inventory management system that can bring the business to the topmost level.

The resourceful inventory module is suitable for any type of business irrespective of the size and type. It can be easily interconnected with the requirements of the company operations like sales, purchase, point of sales, repairs, manufacturing, etc. This feature will help Odoo to bring the business more systematic and professional and also it will improve the productivity and worth of the company.

Some of the important features of the Odoo inventory module are given below

• Odoo inventory module designed in a flexible manner.

• Odoo possessing double-entry inventory management helps to track all the operations.

• Low processing time.

• Odoo inventory can create delivery orders in a simple way.

• Simplifies inventory operations like delivery, shipping, product incoming, outgoing, etc.

• Odoo inventory allows various removal strategies like FIFO and LIFO.

• Odoo advanced routing supports drop shipping.

• Odoo inventory allows its users with multiple warehouse management. It will help you to manage all the multiple warehouse operations with the same system and define replenishment rules.

Inventory Overview

The below image depicts the inventory overview dashboard. The dashboard displays an overview of all your inventory operations. In this window, we can see the different inventory operations to process in each warehouse.

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In the above image, each session shows different operations such as six receipts to process, three internal transfers to process, and five delivery orders to process. the status of each operation is also displayed.

Inventory operations

The Odoo platform promises you various inventory operations that could be convenient for them to boost their inventory management very effectively and efficiently which will help to increase productivity in a well-arranged manner and could reduce human errors.


The transfer is one of the unique features available in the Odoo inventory modules. It is all about the feature, internal transfer that is the product movement basis of the company warehouse. The transfer window can be accessed from the menu operations.

As soon as you enter inventory -> operations->transfers

You will be showcased by a new window like below.

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By using this window, you can identify all the transfer operations. The status of each operation can be viewed from here and features like filtering and grouping are also available.

You can click on each operation one by one as shown below:

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As we are clear on the transfer operation in the inventory management let’s now move on to the type of transfer operations available from the next section onwards that will describe batch transfer operations in Odoo.

Batch transfer

The batch transfer can be defined as the group of transfers undertaken in a single click. Odoo platform assures its users to minimize the efforts and helps to save their valuable time by using this convenient feature. We can regroup several individual transfers into the same batch transfer and can handle the validation process without wasting time.

To enable this batch transfer option, first, you want to activate the batch picking option in settings.

Go to the settings of the inventory module

Inventory > Configuration > settings > Batch pickings.

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Now the Batch transfer window can be viewed under the operation tab of the inventory module and now it is in the active mode. In this batch transfer window, you can see the current batches and their status in an arranged manner.

The image of the batch transfers window is given below

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This window shows the current batch transfers and their status and the more related operations. This window is available in both Kanban and List view.

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Odoo platform allows you to create new batch transfers by selecting the create icon available on the top left corner of the batch transfers window. In the creation window, the user has the option to assign the responsible person for that particular batch, company, operation type, scheduled date, and the list of transfers associated with this batch by selecting the add a line option available in the window.

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After giving all the required details in the given window you should save the created batch. Now the batch is in the draft state and for making the batch in progress condition, you must confirm the batch by selecting the confirm button available on the left top corner of the window. After confirming the batch, it will be In progress state. when all the transfers are completed, the batch state will be changing from In progress to Done.

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The user can also cancel the batch by clicking the cancel button available in the top left.

The inventory module of Odoo surely helps you to handle all the transfers using the convenient feature batch picking and now we can discuss another feature named incoming transfers available in this platform.

Incoming Transfers

An incoming transfer option allows the user to receive the products in the inventory stock of the company. The transfer will help to conduct the operations of receiving the purchased products that are waiting for receipt confirmation. For getting access to this option, the user should create products under the master data tab.

Inventory -> Master Data -> Products.

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The products window can be accessed by selecting the product icon available in the Master Data menu. The image of the product window is given below.

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In the above window, the user can access the created products, and also he/she can create new products by clicking on the create icon.

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Before conducting these inventory operations, the user should confirm whether the product is storable or not. This operation can be conducted for the storable product. The user can assign the product type as storable products in the above window. After confirming the product type, the user can continue the receipt operation steps.

Odoo offers its users two types of delivery order transfers. One is the immediate transfer and the other is the planned transfer. Using these options you can manage the operation of the product transfers in the menu. You can access these options from the inventory overview menu itself. In the inventory overview menu, there is the receipt orders icon where the user can see three dots. A single click on the dots will lead you to access these features.

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Now we can move to the next feature inventory adjustments which is one of the most important features concerning warehouse management software.

Inventory Adjustment

As we all know, one of the most essential features of a warehouse management system is to keep inventory on a right track. Surely, business organizations are trying hard to keep their inventory operations flawlessly. The reality is that it will not always be on the right track.

Odoo provides its users with more featured inventory management software and inventory adjustments. Odoo inventory adjustment will keep the track of all the products managed by an organization.

Inventory Adjustment for one product

In Odoo, the user can update product quantity directly from the product window.

For accessing this feature open your product window form. In this window, you can see an icon named Update quantity.

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On selecting the icon Update Quantity you can view the stock for this product and you can make desirable modifications like add a new serial number or lot numbers, packages, locations, owner, the on-hand quantity, units of measure, and the value associated with it.

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After updating the quantity, the product on-hand stock in the product menu is changed to the corresponding value which has been updated.

Inventory Adjustments for multiple products

Odoo platform also allows you to practice inventory adjustments for multiple products. This advanced feature will help you to update the quantities and give you a chance to edit operations on the products available.

The inventory adjustment menu can be accessed from the operation tab available in the inventory module.

After setting the products as storable one, the user can create an inventory adjustment to know their current stock level

The operational steps for this feature are Inventory -> Operation -> Inventory Adjustments

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As soon as you enter the Inventory Adjustment menu, you will be depicted with a pop-up window as depicted in the below image.

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In this window, you can see different fields like Inventory Reference, Inventory Date, current status, company name and also have the options for filtering and group by.

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In this window, you can define an inventory reference that is a title for your inventory adjustment. Also, the user can choose whether the inventory adjustment is needed for all products or need only for selected items.

After submitting the required information, the user can click the Start Inventory button and the user will be directed to the inventory lines menu as defined in the inventory adjustment. If there is a new product or any adjustment is needed not as indicated by the user the Odoo platform will add the respective inventory line.

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The inventory adjustment can be validated by clicking the validate inventory button available in the inventory lines window.

Scrap Management

In an organization or company that is related to products especially a production company, the chances of scraps or damaged goods are high. The scrap may be any products of unusable, wastage, damaged, date expired materials that come across during the different stages of business activity. By keeping vigilant eyes on the whole stages in business, like manufacturing, in-out transferring this risk of scrap can be reduced to a manageable level. Odoo helps us to manage these scraps that come across in various phases of the business processes.

In Odoo, there is a separate location to store and manage the scraps. To access the scrap management option, the user should enable the feature named Storage Locations from the settings menu of the inventory module.

Inventory > configuration > Settings > activate storage locations.

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The user can set new locations either directly from the settings menu by clicking the Locations arrow available under Storage Locations or can choose from the configuration tab of Inventory.

The below image depicts the locations that were already created.

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The user can create a new location using the Create button available in the top left corner of this window. When you click on the create button, you will get a new window as shown below.

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In this creation form, the user can provide the Location Name, the details about the Parent Location and under the additional information menu you can specify the location type and also the company details. You can tick the box near the option Is a scrap location for allowing this location to put scrapped products. Also, have another option, Is a Return Location to confirm the location as a return location or not. You can add external notes. The Removal Strategies for the location can be mentioned under the Logistics menu defining the default method used for suggesting the exact location or shelf where to take the products from, which lot etc for this location. This method can be enforced at the product category level, and a fall back is made on the parent locations if none is set here.

Scrap the Products

In the Odoo platform, the user can view the scrap icon under each operation of the inventory like Receipts, Delivery Orders, Internal transfers, Manufacturing, etc. We can also view the option to scrap at the top left side of each window.

We can check it under the Receipt window. For getting access to the Receipt window, go to the inventory dashboard and click on the to process button under the Receipts menu. open the Receipts and validate the picking. Now the scrap button will appear on the receipt window.

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The user can shift the scrap product from the stock to the scrap location by selecting the Scrap icon. While selecting the Scrap icon, a new scrap window will appear where one can mention the Product along with the details like quantity and the Owner, Package type, source location, and the scrap location.

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In the Odoo platform, the user can manage the scrap product at any stage of the production line and it is applicable for any type of industry.

Landed Cost

Landed cost is the final amount of the product after completing all the procedures that are necessary for getting the product to the buyer’s hand. That means it is the amount of purchasing costs including the purchase amount, amount of the product shipment, insurance, tax, service charges, currency conversion, transportation fee, and other related costs before receiving it into the hands.

The landed cost will vary from one company to another according to the company policies and the product type.

For accessing the landed cost in Odoo, the user should enable the landed cost option available in the settings menu.

Go to Inventory -> Configuration -> settings -> Valuation -> Landed costs

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After activating the landed cost option from settings, the user can fix landed costs in the landed cost menu available under the operation tab of the inventory module.

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The user can click on the Create menu for creating a new Landed cost. The below image depicts the landed cost creation window.

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In this creation form, the user can fill up the essential details such as Date, Transfers, company details related to this journal, vendor bill along with the respective journal

The user can define the products for which the landed cost type is created by selecting Add a line option.

The split method of landed cost can be configured based on the following attributes.

• Equal: Selecting the option enables to equally divide the landed cost.

• By Quantity: Selecting this option enables cost division based on product quantity.

• By Current cost: On selecting the by current cost option leads to dividing the costs based on the product’s current cost.

• By Weight: Using this option for dividing the cost based on the product weight.

• By Volume: In this option, costs will be divided depending on the product’s volume.

As we clear on the landed cost terminology in the platform now we can move on to the next feature run scheduler available in the operation dashboard of the inventory module.

Run Scheduler

In Odoo, the scheduler is the computation technique that schedules automatically the operations like production and purchasing concerning the rules defined on products. Odoo automatically creates a scheduled action to run the scheduler once a day.

This feature is not visible by default. The operations can be done in debug mode. You can go to help - about and click on Activate the developer mode. The user can also start the scheduler operations manually by selecting the Run Scheduling window available in the operations dashboard of the inventory.

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Now let us move on to the next field warehouse management.

Warehouse Management


Warehouse management is one of the essential aspects of inventory. The warehouses are the places where the inventory stocks(products) are being stored. It is the actual buildings made up for the purpose of stock management. Odoo promises its users to set up multiple warehouse management and also can create transfers between warehouses.

The warehouse operations of the Odoo platform can be initiated from the settings menu of the inventory module.

Go to Inventory > Configuration > Settings > Warehouse > activate Manage several warehouses.

Storage locations and Multistep routes operations also can be enabled.

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After completing these steps, the Warehouse menu can be viewed from the configuration tab of the Inventory module.

Using the warehouse window, the user can view the list of warehouses that were created and also can create new warehouses by selecting the create button available on the top of this window.

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In this creation menu, the user should fill up with the required data. He can allocate company name, short name, address of the warehouse, and Purchase and Sales journal information. The short name is used for identifying the warehouse. Under the Warehouse Configuration tab, the user needs to choose the fields Incoming shipment and Outgoing shipment from the default options available. The Resupply info also can be indicated.

The routes of warehouse operations can also be defined by selecting the button named Routes available in the top right corner of this window.

Now we are discussing the warehouse management system of the Odoo inventory module and we discussed the warehouse aspects and now we can move to the locations of warehouse management.


In Odoo, location is a particular space or position available for keeping track of stocks within the warehouse. It may be a shelf, rack, or floor, etc. A location is the part of one warehouse and it could be considered as the sub location of that particular warehouse. So it is not possible to link one location to multiple warehouses. Odoo allows configuring more locations with respect to the needs and demands of the users.

Odoo provides mainly three types of locations.

• Physical locations: It is the space within your own warehouse.

• Partner locations: Partner locations are the spaces allocated not in your warehouse. It is the location within a customer or vendor’s warehouse.

• Virtual locations: Virtual locations are the places where the product does not exist physically. They come in handy when there is an inventory loss.

For accessing the feature Locations in Odoo, activate storage Locations in the settings.

Go to Inventory-> Configuration -> Settings

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The Locations menu can be accessed from the configuration tab of the inventory module.

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The user can create a new location using the create option available on the top left side of the Locations window.

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In this creation window, the user can allocate Location name, Parent location. Under additional information, he/she can fill up the fields like location type, company to which the location is associated. If the location is shared between companies, he/she can keep this column as empty. The location can also be assigned as a scrap location or return location.

Under logistics have to mention removal strategy, first in first out(FIFO), last in first out (LIFO), the first expiry first out(FEFO), and also can allocate the removal strategy that was needed for the respective location from the options.

It is all about the locations of the warehouse management of the Odoo inventory module. Now let us move on to the rules and routes of operations of this platform.

Rules and Routes

The Odoo inventory module allows the users to set various rules and routes to manage the inventory of an organization. It is a customizable feature that can be used to configure the product movements of the platform based on the routes of operations that have been specified and these rules and routes can be specified at the beginning of the operation or can be created and added during the process of operation. In Odoo these product movements that are assigned based on the routings are strictly followed and monitored until the user defines any changes.

In the Odoo platform the push and pull rules are used to create the routes of product movement inside a company. The pull rules are triggered as per the procurements and the needs. The push rules are triggered by products arriving in a specific location.

The routes in the Odoo platform can be configured by enabling the multi-step routes option from the settings menu of the inventory module.

It is also possible in the Odoo inventory module to categorize the products using the product categorization option and we can discuss it in detail.

Product Categorization

Odoo, the complete business suit brings down the complexities of product categorization and brings business operations in a systematic way. Odoo will categorize the products as sales categories and purchase categories.

The product category menu will be available from the configuration tab of the inventory. When you click on the product category menu, you will be able to create new categories and also can view the already existing categories. You can check all the details and can also edit if required.

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In the product categories, window one can see the product categorization based on features Consumable, Deliveries, Expenses, Internals, Saleable .etc.

The user can access the Create button available on the top of this window for creating new product categories. The image of the product creation window is given below.

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In this Product categories creation window, the user can assign the Category name, Parent category, and the logistics details like Routes, force removal strategy. It is used for setting a specific removal strategy that will be used regardless of the source location for this product category.

Under inventory valuation, the costing method also can be mentioned as to whether it is Standard Price or First in First Out or Average Cost (AVCO).


The Odoo can manage different delivery methods using the advanced features that are available on this platform. Odoo can handle all the delivery procedures of a company from the choosing of products by a customer to the door-ship.

Shipping Methods

The shipping methods in Odoo can be accessed by enabling the option Shipping available in the settings menu of the inventory module.

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Now the Shipping methods menu is available in the configuration tab of the inventory module.

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The defined shipping methods can be viewed in this window. The user can create shipping methods using the create button. The image of the creation window is given below.

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The user can provide a name for the shipping methods and then select the provider. Fill up the margin on rate column and the percentage will be added to the shipping price.

If the user wishes to give free delivery over a fixed amount, he can mention it in the field, free if the order amount is above. Users can express the amount in terms of company currency.

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You can mention the delivery product and the company details in the allocated space. In the Odoo platform, you have the option to deliver your products in different packages depending on the volume or weight of your products. Let us have a look at the delivery packages option.

Delivery Packages

Deliver Packages is one of the available features in Odoo that allows the users to put products in different packs such as parcels, boxes, etc based on their weight or volume and also helps to track them. It is a very complicated task to track each product separately and the time-consuming task can be well managed by using this feature.

For enabling this option ,go to settings -> inventory -> operations -> Delivery packages.

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From the product description menu, now the user can access the option Destination Packages. One can allocate Delivery packages for each delivery order.

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Selecting the put in pack icon will lead to putting all the products of the delivery order together in a packet.

The user can find all the packages which were created as part of that particular delivery order by clicking the smart icon packages available on the top right corner of the window.

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Email confirmation on delivery

It is possible in Odoo, to send auto-generated emails for confirmed deliveries and the user can make desirable changes in the emails. For accessing this option, first, you need to activate the email confirmation option in settings. It is available under the shipping tab of settings. For activating the email confirmation feature,

Go to inventory -> configuration -> settings -> shipping -> email confirmation

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The user can modify email templates by clicking on the small arrow available near the Email Templates option.

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SMS confirmation at delivery

Apart from email confirmation on delivery, Odoo allows SMS confirmation too. The auto-generated text messages will reach rapidly to the customers and the result will be more effective.

For activating this feature SMS confirmation,

Go to Inventory > configuration > settings > shipping > SMS Confirmation

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Scheduling times

In Odoo inventory module settings, there is an option available for scheduling time. The user can access this feature by activating the option security lead time for sales and security lead time for purchase under the Advanced scheduling tab.

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This unique feature will help to schedule the deliveries as early as possible to avoid any delays. It will help to conduct the company operations without any stress and complaints

The user can plan and schedule both the times required for the confirmation of a purchase order and the time required for the completion of delivery.

The option security lead time for sales allows the user to schedule deliveries to avoid delays. This option will help to avoid unexpected delays in the supply chain. The user can successfully manage his promises and can assign the number of days that should be moved up in the allocated space in settings.

Security lead time for the purchase is another option that allows the user to assign the days for the purchase order earlier to avoid any delays.The scheduling option will help you to schedule your receipts and deliveries without any delays.


In Odoo inventory settings, there is an option to generate automated warning messages. The user can access this option under the operations tab. The activation of this feature will help to generate warning messages in inventory operations.

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It is sure that reporting or reports have an eminent role not only in business but also in every aspect of our life. Through the reports, one can get all the concepts and details without spending much time. It gives out adequate information on various aspects of the business or dealings. In Odoo, the user can experience various types of reporting functionalities. the user can create graphical, analytical, descriptive, and informative reports on company activities.

Inventory reports

The inventory reports of Odoo will furnish all the available inventory product details in different views such as list view, pivot view, and graph view. The filtering and group by functionalities are available in each view.

List view the below image depicts the list view of the inventory reports.

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The below image depicts the Pivot view of the inventory reports and it will provide the analytical data and will help you to easily analyse the whole data. The data can be exported to other mediums through an excel file.

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Graph view the below image depicts the graph view of the inventory reports which will provide a visual form for easy understanding and it displays a large amount of data in one single view.

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Forecasted inventory

Forecasted inventory reports that are available in the Odoo platform will generate various reports based on the forecasting operations conducted in inventory, sales purchase, and manufacturing operations of the company. Using these reports the user can predict the product operations. The reports are available in the bar charts and line charts. It is available in both quantity measure and count measures. The filtering and group by functionalities make it more efficient.

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The double entry inventory management module in the Odoo platform will simplify all your inventory operations and help you to avoid stocking related inaccuracies and will provide better internal operations.



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