Inventory Adjustments & Cycle Counts | Odoo Inventory

Welcome back, Odooers! Let’s face it, even  though we try to be as accurate as possible, human error is unavoidable. That’s why we perform  inventory audits and adjustments – so we can keep our real stock levels and database stock levels  NYSNC.

So we can say BYE BYE BYE to errors, losses, and thefts. For those unaware,  ‘Inventory Adjustments’ are necessary increases or decreases we need to make to our  stock, in order to account for errors, losses, and thefts. That’s why we need to make sure to  adjust our inventory when the quantity of items in a physical location isn’t the same as the quantity  of items recorded in our database.

Most companies legally have to perform at least one full stock  count every year. But we like to do things a little differently here at Stealthy Wood. Instead  of counting all our inventory at once, we do cycle counts for certain products at regular intervals. 

Doing so saves time, resources, and eliminates the need for us to close up shop for a couple days in  order to perform a full inventory adjustment. So, let’s hop into our database, and see how all it  works in Odoo’s Inventory app. The first inventory adjustment we can do in Odoo is the quickest. 

We’ll go to a single product form, and manually adjust an individual error – without waiting  for a complete count. To do that, we’ll open the Inventory app, go to ‘Products’ and ‘Products’,  and click on our Stealthy Wood Mug. From here, we’ll click the “On Hand” smart button.

As you  can see, the available stock is already there, along with its location. Here, we could click  “New,” and record that we have some additional stock at a new location… But, for now, we’ll  update the already existing stock. So, let’s say I found 15 mugs in the warehouse, instead of 10  mugs, like it says here in the “On Hand Quantity” field.

I’ll change the ‘Counted Quantity’ to  15 and click 'Apply all' and 'Apply'. Then, I’ll click on the Stealthy Wood Mug breadcrumb.  Now, let’s check out the product’s ‘Move History’ by clicking the "In and Out" smart button.

The  ‘Moves History’ for Stealthy Wood Mugs contains detailed records about the source, destination,  and quantity of items moved. The latest move, the manual inventory adjustment, shows an  increase from 10 to 15 mugs. 5 mugs arrived ‘From’ the ‘Virtual Location’ due to an inventory  adjustment to ‘Stock’.

Virtual locations in Odoo act as a counterpart to warehouse stock, helping  manage inventory creation or loss. I can also see where my other stock came from. You’ll see the  original 10 mugs were purchased from vendors, and the 5 added items are labeled as an “Inventory  adjustment,” which is what we just did.

So, let’s talk more about that now. Currently, at  Stealthy Wood, our system defaults to an annual inventory method, where we count everything once  a year. But, we want to set up a cycle count for certain products, meaning we’ll count our stock  more regularly, instead of all at once.

First, let’s see what we already have set up in  the Inventory application. To do that, I’ll go to the 'Configuration' and 'Settings'.  Under the Operations section, I’ll look at the “Annual Inventory Day and Month", which is set to  December 31.

This is the default date where every quantity, at every location, should be counted, if  we’re using an annual inventory counting method, of course. Alright, now, let’s navigate  to the ‘Operations’ Subheading, and select Physical Inventory. Here, we’ll find our master  inventory list, which is automatically sorted by “Scheduled Date,” and places what needs to be  counted first at the very top.

As you can see, the scheduled date is automatically set for  “December 31st” for all these products. Now, let’s go ahead and choose a product to adjust.  Let's do the Customizable Desk and change the 'On Hand Quantity' to a different 'Counted Quantity'. 

Let's do 45 and click 'Apply'. And as you can see, the 'On Hand Quantity' automatically changes. Now,  I’m going to select three other products.

Let's do the three below the Customizable Desk. And let's  say we just decided to clear our inventory of these products, so let’s do that by clicking  the 'Action' button here at the top right, and click ‘Set to 0’. And let's go ahead and click  ‘Apply All’ here on the top left.

And when we do, a pop up window appears, and we can record a  unique reason for the inventory adjustment, for example, let's say we're doing “Inventory  cleaning”. And let's go ahead and click 'Apply'. Now, when we look at the ‘History’ of the  product, we can see the Reference changes to show the different product moves!

Now, let’s click  the 'Inventory Adjustments' in the breadcrumb. I’m going to check out another product, let's do the  Wood Panel, and click 'Set'. This is a really fast way to say our counted quantity is exactly the  same as our on-hand quantity.

Then, we’ll click 'Apply'. Doing so ensures we have a running record  of what's counted- even if that counted quantity is zero. Also, if I click the ‘History’ button of  a product, like the one we just modified, we’ll see all of the inventory adjustments that have  been made.

Now, let’s jump back to the 'Inventory Adjustments' page, via the breadcrumbs. Here,  from the master list view… I can click on this ‘down’ arrow in the search bar. I can organize all  of my products using all of these ‘Group Bys’.

Or, I can just see what needs to be counted today  using the “To Count’ filter over here. I can also quickly find wrong entries by filtering for  ‘Negative Stock’ …the list goes on and on! And, by clicking 'New', I can quickly add a product  that doesn’t exist at a specified location yet, but I'm going to go ahead and 'Discard' this for  now.

By clicking the top-left checkmark over here, I can select all the check marks at once. When the  ‘Apply’ button is pressed, I can apply any edits that have been made to all the selected items. I  can also clear changes, and set things en masse, print a PDF of items to count, or ‘Request a  Count’.

When I 'Request a Count', this pop-up asks for the inventory date, the accounting  date, and you can either leave the count empty, or set it at the current value, but I'm  going to go ahead and 'Discard' this as well. Alright, Odooers – we’re in the final stretch  here. Up until this point, we’ve already seen the benefits of making inventory adjustments  on the product form.

But what about specific locations? Sometimes, it’s easier to make  full inventory counts on specific locations, because products are often stored according to  their turnover rate. For example, a perishable product might be stored in a more accessible  location than a non-perishable one, because we need to be able to access it more easily.

Makes  sense, right? Now, let’s say we want to set up a cycle count for our products in WH/Stock. To do  that, we’ll go to 'Configuration' and 'Locations', and click on 'WH/Stock'.

From here, we’ll  change the Inventory Frequency to 30 Days. Great! Now, let’s go back to the 'Operations'  Subheading and click on 'Physical Inventory', and let's go ahead and make an inventory adjustment  to the 'Acoustic Bloc Screen', let's do 25, click 'Apply', and we can see that the scheduled  date updated to exactly 30 days from today.

How cool was that? Well, that’s all for this video on  inventory adjustments. For more Inventory fun, be sure to check out our other eLearning tutorials. 

Until next time, Odooers. Thanks for watching!