Odoo 18 Enterprise Book: Sales

15. Product Categories

In Odoo 18 Sales, the Product Categories feature allows businesses to efficiently organize and manage products by grouping them into structured categories. This categorization simplifies product handling, enhances search functionality, and enables category-based filtering for quick access to relevant items. To access product categories, users can navigate to the Sales module and select Configuration > Product Categories.

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This section displays a list of predefined categories such as All, Consumable, Deliveries, Rental, Saleable, Internal, and External, among others. These predefined classifications help structure product data based on their usage, sales status, and logistical requirements.

Creating a new product category is simple and can be done by clicking the New button, which opens a configuration window where users can specify the Category Name and define a Parent Category if the new category is a subcategory within an existing hierarchy. Additional advanced configurations are available under the Logistics, Inventory Valuation, and Account Properties tabs to refine product management.

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The Logistics tab provides options to define product movement and storage strategies. Users can set Routes, such as Make to Order (MTO), Dropshipping, or Buy, to determine how products in that category are procured and managed. The Force Removal Strategy option overrides the default source location rules, ensuring a specific removal process for products in the category. Additionally, the Reserve Packaging feature allows businesses to choose between reserving Only Full Packaging, ensuring only complete packaging units are reserved, or Partial Packaging, which allows the reservation of available units even if full packaging is not possible.

The Inventory Valuation tab enables businesses to configure the Costing method for financial tracking. Odoo offers three costing methods: Standard Price, which keeps product cost fixed regardless of purchase price fluctuations; Average Cost (AVCO), which calculates product cost based on the weighted average of all purchases; and First-In-First-Out (FIFO), which assumes that the oldest stock is used or sold first. Additionally, users can specify the Income Account, Expense Account, and Downpayment Account in the Account Properties section.

To further streamline product management, Odoo provides smart buttons within the Product Category window for quick access to related data. The Products button allows users to view all products linked to a particular category, while the Putaway Rules button helps define how products are stored and moved within warehouses based on their category.

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