Odoo 18 Enterprise Book: Inventory

2. Operations

Operations menu in the Odoo Inventory Module offers vital utilities for managing stock movement and warehouse operations effectively. It allows businesses to manage transfers, batch operations, inventory adjustment, picking rules, and replenishments to facilitate seamless logistics and stock accuracy. This menu helps optimize warehouse processes, automate the replenishment, and track real-time inventory levels. Through the use of these features, businesses can enhance the efficiency of their operations and minimize errors in managing stock.

3.1 Transfers

Companies with multiple warehouses need to manage the flow of goods from one location to another. Under certain situations, the companies might possess different branches in different cities, and thus it will be extremely hard to coordinate product transfers efficiently. Companies often manage such situations by assigning main warehouses and other warehouses for product distribution. Product transfers from one location to another are simplified with Odoo18's Transfers feature.

Inventory transfers involve the movement of products within and out of warehouses. Internal transfers are also covered for the movement of products within the warehouses of the company. Warehouse management and setup are facilitated by the Odoo18 ERP system, which we will discuss in the next section. You may control the product transfer between the configured warehouses and locations by using the Transfers option found under the Operations menu after defining the company's warehouses and locations in detail.

You can see transfers such as Receipt, Deliveries, Internal, Manufacturing, dropship, Batch Transfer, and Wave Transfer in the Transfers option, as indicated in the above image.

3.2 Receipt

You can see details of the Reference, From, To, Contact, Scheduled Date, Source Document, Batch Transfer, Company, and Status of the preconfigured transfers here, as indicated in the following image.

You can simply finish the sorting activities using the Group By and Filters features. For this site, you will also have Kanban, Calendar, and Location views. Let us now see how Odoo18 allows you to create a new transfer for the movement of goods between two places. Click the New button to accomplish this.

Partner id can be typed in the Contact field of the new transfer creation window. Several transfer types can be handled by this platform. Receipt, Internal Transfer, Delivery Orders, Returns, Manufacturing, Resupply Subcontractor, POS Orders, Dropship, and Manufacturing are some of them. In the Operation Type field, you can select the type of transfer you desire for your product movement. You can define the source location of the product and destination location after selecting a suitable Operation Type. The Scheduled Date option can be utilized to denote the expected date of movement of stock. You can mention the reference to the document related to this transfer of the product under the Source Document field. You can use the Add a Line button on the Operations tab to list every item that is included in this transfer separately. You can define the names of the products, their packaging, demand, and UoM besides their names. The amount of the product that is going to be transferred is called the demand.

On the Additional Info tab, you can add the Shipping Information.

The Carrier Details, Tracking Reference, Weight, and Weight for shipping for the goods under this transfer may all be added here. The shipping policy for the transfer may be set up in the Other Information section. You can also define a Responsible employee to be in charge of the future activities of the transfer. Lastly, complete the respective fields with the Procurement and Company information.

You must include internal notes regarding this transfer on the Notes tab. The transfer will be stored once the Save button has been clicked.

The transfer is first in the Draft state. The transfer can be viewed in the Ready state if it is ready to be processed. To move the transfer to the Ready state, click the ‘Mark as Todo’ button. Click the Validate button when the transfer process is complete, as in the screenshot below.

The transfer process is complete.

You can print off the transfer's delivery slip using the Print button. The Return button allows you to send the items back to the previous place.

3.3 Deliveries

It moves stock out of the warehouse to customers or other locations. Commonly it is used in sales operations. The page of deliveries will be, as in the image below.

3.4 Internal

Transports inventory from one place to another within the same business. utilized for moving storage areas or transferring goods between warehouses. excludes outside parties.

3.5 Manufacturing

It handles the movement of raw materials to the production area and the movement of finished goods back to inventory.

3.6 Dropship

Transports products straight from a source to a consumer without keeping them in storage. No effect on the business's stock.

On activating the dropshipping option in the settings, The tab for an inventory of the operational routes can be found in the product configuration, as in the image below.

This parameter can be used to specify a product's routes. Additionally, remember to add a vendor from the purchasing tab of the product form.

When a purchase order is made, this will be the seller of the product.

Additionally, you can configure or create new routes by heading to the settings tab of the inventory module, which will bring up the Routes menu.

The pathways lead to the dropship, where you can make any necessary adjustments.

This part contains the sequence number and name of the operational route. You can select which product categories and items this route is accessible for by filling out the section that appears. To make this route the default path for products that go through the specified warehouse, you can turn on the Warehouse option as needed. Since dropshipping is a direct delivery method from the supplier to the buyer, it typically doesn't require a warehouse.

Turning on the selling order lines also allows you to choose this path from the line. The details of the route are described on the Rules tab.

Now, create a sale order for the goods that includes information on the dropshipping process; when a customer places an order, the product will be shipped directly from the supplier to the customer.

Additionally, you can use the sales module to create a sale order for this product.

As a result, a purchase order will be placed to initiate dropshipping. The RFQ's status as a purchase order is confirmed. A purchase order will appear.

The vendor selected when you open the purchase order is the one we mentioned on the product form's Purchasing tab.

In compliance with the applicable sale order criteria, the product and quantity are also updated. Dropshipping is used, and the customer specified on the sale order serves as the delivery address.

A dropship smart button for validation will show up when the purchase order has been validated.

As you can see, in the form mentioned above, the delivery address is the destination location. The dropship may now be confirmed. Create a bill for the purchase order and document payment after the dropship has been confirmed. I'm going back to the sale order.

As you can see, the supplied quantity has been adjusted here because the seller sent the merchandise directly to the client.

Once all of these procedures are completed, the products will be purchased from the supplier in accordance with the purchase order and supplied to the customer in accordance with the sales order.

3.7 Batch Transfers

Using the Batch Transfer tool in Odoo18, you can perform multiple transfers at once. You can use this tool to perform batch transfers, which will save you time and effort. All transfers included in the batch are carried out at the same time when transferring in batches. The issues involved in handling bulk transfers can be minimized by using this method.

As can be observed in the picture below, the Inventory module's Settings menu enables you to quickly enable the Batch Transfer option.

After selecting the Batch Transfer option, click the Save button to save the updated changes. You may now manage batch transfers from the platform that is available under the Operations menu, as seen.

Here you can observe a list of previously created batches and details for Batch Transfer, Scheduled Date, Responsible, Operation Type, Company, and State. You may also switch the perspective of the platform to be a Kanban perspective. From here, begin a new batch transfer using the New button.

You may assign an employee to do this batch transfer's upcoming tasks in the Responsible box. Complete the blanks for Operation Type and Company. Odoo18 allows you to add transfers with this operation type to this batch by giving the Operation Type. You can schedule the transfer's expected date manually in the Scheduled Date column. Unless manually specified, the date for this transfer will be set automatically by Odoo18 to the first scheduled date of the transfer that belongs to the batch. There, you have the options of dock location, vehicle, and vehicle category to add as well, which is available on activating the Dispatch Management system option in the settings.

Now, you may use the Add a Line option on the Transfer tab to add transfers to this batch one at a time.

You will get a new pop-up window as soon as you click on the Add a Line button where you can select the transfers for this batch. You will be shown a list of different transfers for the selected operation type in different phases. The transfers can be selected from the list. Select transfers of the same stage either in waiting or ready status, if feasible. You may use the Select button to include them in the batch.

The selected transfers' list will be added automatically to the batch, as can be viewed in the above figure. You can use the icon ❌ in the following screenshot to delete any of the transfers from the batch. Using the Confirm button once the availability has been confirmed, you can complete the transfer. Then, you can complete the batch transfer process by clicking on the Validate option.

From the Transfers menu, it is also possible to create new batches of transfers. This is possible through access to the Transfers platform found under the Operations menu. The transfers to include in a batch are selected from the existing list of available transfers. Ensure the selected transfers all have the same operation type and status. Following the selection of the required transfers, an Action button is then visible.

The Action button gives you the option to incorporate the selected transfers in a batch. Select the "Add to Batch" option.

The selected transfers can be added to an existing or a new batch transfer. You can specify the Responsible employee in the given field for a new batch transfer. Enable the Draft option to generate the new batch in the draft state. A new batch transfer will be generated in the Inventory module after clicking the Confirm button. You can track and manage the new batch transfer from the Batch Transfer portal.

3.8 Wave transfers

The Wave Transfer method does the same thing as the Batch Transfer option. With this method, you are able to transfer a significant amount of merchandise from one location to another. A transfer, though, can't be removed from a wave transfer once added. The wave transfer method is more advanced compared to batch transfers. Make sure to enable it from the Settings menu in order to receive this feature in the Odoo18 Inventory module.

You are able to access the Transfers window once the Wave Transfer feature has been activated. In order to add transfers to a wave transfer, select the transfers from the Transfers window with the same status and operation type.

Once you select the required transfers, the Action button will be displayed on the screen, where you can select the Add to Wave option. A new pop-up will be displayed on the screenshot when you click this button.

The selected transfers may be included in a new transfer or an already-existing wave transfer. For a fresh wave transfer, you need to find an officer in the Responsible field. To complete, click the Confirm button.

As soon as you approve the transfer, all orders from the chosen transfers will appear on your screen. Select the required orders from the list, then select Add to Wave.

You can see the newly created wave transfer from the Wave Transfer platform in the Operations menu.

The details of the Wave Transfer, Scheduled Date, Responsible, Operation Type, Company, and State will be shown in the preview of the list. A new window will open when you click on the Wave transfer to confirm the transfer.

Click the Validate button to complete the transfer.

You can also have the option of automatic batch and wave transfer under the operation types option, as in the image below.

On activating the option, you are provided with the options, like maximum lines, maximum transfers, auto confirm, batch grouping, and wave grouping, respectively.

Cluster picking is a warehouse order fulfillment strategy where pickers gather items for multiple orders into a single cart or container, reducing travel time and improving efficiency. It's a derivative of batch picking, but instead of sorting products into separate containers, pickers sort them into different order packages within the same cart.

3.9 Physical Inventory

According to the physical inventories available in your company currently, there can be some situations when certain changes in the inventory will be required. The changes you have done in the inventory must also be updated in the inventory records for ensuring proper inventory control. You can make changes to the inventory records in Odoo18 according to the availability of physical stock, with the help of the Physical Adjustment platform.

With Odoo18, you are able to update your inventory immediately from the window of product description. On every product, you will be able to locate the Update number button as indicated below, in an effort to properly record the number on hand at your company's warehouses.

Click the smart button (highlighted in the image) to view the information on the quantities On Hand on this page. You can alter the product's amount by clicking the Update Quantity button.

To manage all of these inventory revisions, you can find a special platform called Physical Inventory in the Odoo18 Inventory module's Operations menu.

The records of each inventory modification can be viewed on this platform. You can update the quantity of multiple items at once with this window.

Through this window, you can retrieve details of Location, Product, Lot/Serial Number, Package, Owner, On Hand Quantity, UoM, Counted Quantity, Difference, Scheduled Date, and User.

You can adjust the amount in relation to the stock on hand by clicking on the New button. In this, you have to enter the relevant field with the Counted Quantities for the given lot/serial number. Odoo18 will automatically show the difference between the On Hand Quantity and the Counted Quantity as soon as you refer to the Counted Quantity.

With the Apply option, you are now able to update the records with this inventory change. You can choose the Clear option in case no inventory changes are needed. The History button enables users to see the history of inventory changes done to a product. You will be given some additional buttons to manage the available inventory adjustments by selecting them from this window. To implement the selected modification along with the rest, press the Apply button. You can reverse all of the selected settings simultaneously by clicking the Clear button.

Click on the Apply button, as shown in the figure, to implement the updated inventory changes for the concerned products.

The Request a Count button enables you to request a count for the chosen inventory modifications. You can specify a date through a pop-up window to have the inventory delivered on that day. You may leave the Count field empty or modify the current value according to your requirements. Choose "Confirm" from the menu. In Odoo 18, we treat inventory modifications in the same way.

Moving products from one location to another is made simpler with Odoo 18's "Relocate" option. In the popup box, you can add To Location, To Package, and explain why you're moving. Then, confirm.

The module's Settings menu allows you to choose the day and month when the yearly inventory counts will be conducted.

As shown in the example, you can use the Annual Inventory Day and Month option to choose the day and month that yearly inventory should be counted.

3.10 Scrap

Inventory considered scrap consists of broken or non-working products. Products approaching or past their expiration dates can also be considered scraps. There is a likelihood that broken or expired products will be found in checking the inventory. We must dispose of these items as soon as possible since we cannot sell broken or expired products. The majority of the time, the products with minor damage are used in repair processes. The reusable parts of the scraps can be used during the recycling processes. You can save money and, above all, the environment by using a more intelligent scrap management system. The scraper that was removed from the inventory can be transported to a location for scrap.

You can assign a location for scrap from among the available storage locations in the warehouse. Let us find out how the handling of the location of scrap in your storage is simplified by Odoo18. The handling and configuration of storage locations in the Odoo18 Inventory have already been discussed. You can configure a location for scrap with the same process. You can accomplish this by going to the Locations menu under the Configuration menu. The opening of a new window is illustrated below.

Click the New button to create a new scrap location.

You can type the name of the location in the field available in the window for the new place creation. In this case, the location is named Scrap Location. The rest of the steps are identical to those we described in the previous Location configuration section. The most important step is to enable the Is a Scarp Location field in order to handle this place as a scrap location. You may click the Save button once you have inserted all applicable details. In the storeroom, we've completed assigning a location for scrap. Through the use of this method, more scrap locations may be established.

On opening the scrap option from the operation tab, all the fields for the name of the scrap product, quantity, package, and owner are present here. The Source Location of the product will be shown. You can select the scrap location from the drop-down list in the Scrap Location field if you wish to relocate broken or expired items there. The product will be relocated to the specified scrap location when you press the Validate button. The delivery orders will be decreased by the quantity of the scrap product. The new page will be, as in the image below.

If a replenishment rule is set up for the product being scrapped, and if the product should be replenished, tick the checkbox for Replenish Quantities.

The pre-set and programmable options under the Filters and Group By features can be used for sorting.

3.11 Landed Costs

The extra amount the company has to pay for a product at the time of purchasing is referred to as the "Landed Cost." It involves shipping, handing charges, import duty, and various other expenses. All the extra costs are being added with the actual cost of the product to arrive at the selling cost. Various companies will adopt a different approach based on their organizational policy to compute the landing cost. You can calculate the landing cost and split it over each of the quantities of the products in the Odoo18 Inventory module to revise the selling price.

To enable the Landed Costs feature as shown in the picture below, go to the Settings menu.

By enabling this feature, you can include user-defined landing costs on your items. You can first build a buy order of some items under the same product groups and mark the order to better understand the landed cost's functionality. On products with an AVCO or FIFO costing method established, you can define landing costs. Inventory valuation of such products should be Automated. This is the condition for the landed cost that you need to account for when tailoring it.

Under the Products line, you can view the unit costs of the products as you buy them. Your purchase will be finalized once you press the Confirm Order button. When you press the Receive button, these items will be posted to your inventory records.

You may now retrieve the items in inventory. Through clicking on the Validate button, you can confirm whether the products have been transferred successfully. The goods that were bought are now being stored in the space marked on the receipt. When you are selling these items, you may add landed cost to the price.

Think about shelling out a little cash for the transfers so you can send these products to where you need them. You can include your lost money in transfers as an additional charge on merchandise. You can make charges on the products utilizing the landed cost feature in Odoo 18 Inventory.

Do this by visiting the Inventory module's Operations menu. As demonstrated in the screenshot below, the Landed Costs platform is accessible.

You are able to retrieve the details of the previously added landed charges from this window. You are able to create a new landed cost by clicking the New button.

You can place the date of creation in the respective field here. On transfers or manufacturing orders, you are able to specify the new landed cost. As we need to add landing costs on transfers, we are able to select Transfers in the Apply On field. In the Transfers section, you can provide the receipt ID we generated above. The fields there enable you to enter the Journal of the goods, Company, and Vendor Bill. With the Add a Line button, you can specify the extra costs in the Additional Costs tab.

In this case, we considered table top to be an independent cost. When setting up transportation as an extra charge, keep in mind to save it as a service product, as shown in the figure below.

After you've indicated the Product, Description, and Account details, you may select the relevant Split Method.

How the Split Method will split this landing cost amongst the products enumerated in the transfer receipt will be determined by the Split Method. As per your company's policy, it can be set up in the form of Equal, By Quantity, By Current Cost, By Weight, and By Volume. In our case here, we may use the Equal split option. Hit the Compute button to calculate the landed cost.

With the Validate button, you are now able to validate the landing cost. This cost will be included in the goods' selling price. This method might increase your sales profit by establishing landed expenses for your products.

3.12 Replenishment

An essential inventory process that assists you in maintaining an appropriate quantity of items in your inventory is replenishment. You must stock the inventory according to demand to ensure a continuous supply of items. Here, the Odoo18 ERP System provides instant support to a company's replenishment processes. Replenishment can be performed in two ways. You can use both the product management window as well as the Replenishment module of the Inventory module for stocking products.

The Operations window in Odoo 18 Inventory module provides you with the access to the Replenishment management window. There is a list of preloaded replenishment orders on this advanced platform.

The Search Box is available by which individual Replenishment orders can be searched. Pre-selected and selectable Filter options available offer an easy method to recover required information. In combination with the Group By facility, it can be easy to group orders on Location, Product, as well as on Category. On the left part of the window, you'll notice a custom sort panel, by which it's possible to order information as per Locations.

You can separate all the replenishment requests and manual replenishment with the Trigger option.

The list preview includes the following information: Vendor, Forecast, Preferred Route, Location, On Hand, Minimum Quantity, Maximum Quantity, To Order, and UoM. You can manually create a fresh refill by clicking the fresh button. Details on a product's refill will be displayed in a new line.

The product's Location, On Hand, and Forecast will automatically be filled in the respective fields when you enter the product name in the specified field. The drop-down option that is offered enables you to select the Preferred Route.

The minimum and maximum levels of the product that need to be replaced should then be stated. You will be presented with two choices to place the order for the product, like Order Once and Automatic Orders, as soon as you enter the To Order quantity. You can easily create replenishment by creating a request for quotation by choosing the Order Once button. The replenishment orders will be processed automatically once you click the Automatic Orders button. With the use of the Snooze facility, you can delay the process for a certain period of time.

You can choose to delay the process for a day, a week, a month, or a custom period of time with this option. You can also set a Snooze Date on this pop-up window.