Accounting for Cost of Goods in Odoo 10
Using Odoo's powerful inventory system to handle cost of goods (COG) sold
Setting up Odoo to track and account for Cost of Goods
When you are running in sort of distribution, warehouse, or manufacturing operation it will often be necessary to track the cost of the goods that you sell. Like most Odoo applications, when you first install them only the most basic features are enabled. In Odoo you can configure cost of goods and have Odoo automatically create the required accounting transactions... but you have to know how to set it up.
What steps do I need to take to calculate cost of goods in Odoo?
The first thing you will need to do is make sure that inventory control and accounting & finance are properly installed in your Odoo instance. In this video example we use the sales application to sell products and properly configure Odoo to create the accounting journal entries in the cost of goods account. This is similar to a cost of revenue account but more specifically describes material items purchased for manufacturing or resell.
Better understanding of Accounting & Finance in Odoo
If you are still somewhat new to how Odoo handles accounting & finance during the sales & delivery process this video should help you better understand how the accounting transactions are created. To really understand how to implement Odoo it is critical to have a through understanding of the journal entries and how to configure product categories.
TOPICS COVERED:
- Introduction: Installing Inventory Management, Accounting & Finance, Sales
- Examining Product Categories Accounts with no Chart of Accounts installed
- Installing the Chart of Accounts
- Examining the Default Income, Expense and Stock Accounts
- Examples of Cost of Goods Accounts vs Other Expense Accounts
- Set Inventory to be Perpetual (Required for Automatic Cost of Goods Reporting)
- The Advantages of Installing the Chart of Accounts after your application
- Configuring Products so they can Properly Journal the Cost of Goods
- Examining the Profit and Loss Statements after Confirming Sales Orders
- Create and Post Invoices
- Troubleshooting Costing Methods and Configuration Errors
- Setting the Standard Price for Perpetual Inventory Valuation
- Accounting for Cost of Goods in Odoo - Summarized
Your Instructor
Greg Moss started working with personal computers at 12 years old. At age 15, he wrote his first paid business application, a loan management application for First American Acceptance Corporation. A few months later Greg developed a statistical application to process surveys for John A Logan College. Now more than 30 years later, Greg has produced hundreds of commercial applications and training courses, and has been involved in numerous enterprise application projects.
In addition to completing degrees in Business Administration and Information Systems Design, Greg is a Certified Information Systems Auditor, a Six Sigma Black Belt, and holds an Information Assurance Certification from Carnegie Mellon University. In addition to his successful consulting practice, Greg has worked in positions as a Chief Information Officer (CIO), Chief Executive Officer (CEO), and excels in delivering technology-enabled growth to companies. He is an experienced digital marketer and focuses on real-world results and solutions.
Greg is the founder of First Class Ventures, LLC and OdooClass.com. Over the past 8 years Greg has produced over 200 video courses covering business application development and game design.
Greg is the author of Working with Odoo, Working with Odoo 10, Working with Odoo 11, Working with Odoo 12, and Learn Odoo.