Full flow of Odoo Inventory implementation, starting
from configuration until the end of implementation (go-
live).
Phase 1: Initial Setup & Configuration
General Settings
Enable Inventory App.
Configure Warehouse Structure
Warehouses (Main Warehouse, Sub-Warehouses).
Locations (Stock, Input, Output, Scrap, Returns, etc.).
Set Operation Types
Receipts.
Internal Transfers.
Delivery Orders.
Manufacturing / Drop shipping
Activate features based on needs
Multi-Warehouses.
Multi-Step Routes (e.g., Receive → Quality → Stock).
Lots/Serial Numbers tracking.
Expiration dates.
Storage Categories (bin/shelf logic).
Barcode scanning.
Phase 2. Data Preparation
Products
Create Products
Product type (Storable, Consumable, Service).
Units of Measure (UoM).
Product Categories (linked to accounts).
Define Routes
Buy, Manufacture, Dropship, Make-to-Order (MTO).
Apply Tracking :(Lot numbers / Serial numbers).
Reordering & Stock Rules
Minimum/Maximum stock levels.
Reordering rules (with lead time).
Vendor lists (with lead time & price).
Phase 3. Integration with Other Modules
Purchasing → Receipts.
Sales → Deliveries.
Accounting → Valuation & Costing:
Manual or Automated Valuation.
Costing method: Standard / FIFO / AVCO.
Manufacturing → Consumption of raw materials, finished goods.
Barcode App (if required) → streamline operations
Phase 4. Transactions & Operations Flow
Typical Operations
Incoming Shipments
Purchase order → Receipt → Put-away
Lot/Serial number assignment
Internal Transfers
Move stock between locations (e.g., WH/Stock → WH/Shop).
Delivery Orders
Sales order → Delivery Order → Pick/Pack/Ship (based on configuration).
Inventory Adjustments
Opening stock balances.
Cycle counts or annual stock count.
Scrap Management
Scrap damaged/expired items.
Returns
Customer returns (linked to sales return).
Vendor returns (linked to purchase return).
Phase 5. Advanced Features
Batch Picking / Wave Picking for large warehouses.
Cross-docking.
Drop shipping setup.
Consignment stock.
Barcode operations for mobile devices.
Expiration & Removal Strategies (FIFO, LIFO, FEFO).
Phase 6. Reporting & Analysis
Stock Valuation Reports.
Inventory Ageing.
Forecasted Inventory.
Reordering Reports.
Traceability (Lot/Serial tracking).
KPIs (Lead time, Stock coverage).
Phase 7. Testing
Simulate real business scenarios:
Vendor delivery with lot numbers.
Customer delivery with partial shipments.
Stock count & adjustment.
Validate integration with:
Sales, Purchase, Manufacturing, Accounting.
Phase 8. Go-Live
Import opening balances & stock.
Train users (warehouse staff, sales, purchase).
Monitor transactions daily for:
Negative stock.
Valuation mismatches.
Routing errors.
End-to-end implementation roadmap for the Odoo
Inventory module
1. Configuration Phase (System Preparation)
1.1. Warehouse Structure
Define number of warehouses:
Single warehouse (simple operations).
Multi-warehouse (multi-branch / multi-company).
Define locations:
Input (incoming goods).
Stock (available for sale).
Output (outgoing goods).
Scrap (damaged/expired).
Transit (for inter-warehouse transfers).
1.2. Operation Types
Receipt (incoming goods).
Delivery (outgoing goods).
Internal transfer (between locations).
Manufacturing / Subcontracting (if needed).
1.3. Routes & Rules
One-step: Receipt → Stock.
Two-step: Receipt → Quality → Stock.
Three-step: Receipt → Input → Quality → Stock.
Outgoing: Stock → Customer OR Stock → Packing → Shipping → Customer.
2. Data Setup
2.1. Products
Product Type:
o Storable (requires inventory tracking).
o Consumable (used but not tracked, e.g., packaging).
o Service (no stock).
Units of Measure (UoM) – kg, pcs, m².
Product Categories – to define valuation accounts.
Barcode (if using barcode scanners).
2.2. Tracking
By Lots (batch-level tracking).
By Serial Numbers (unique item tracking).
Expiration dates (for perishable products).
2.3. Reordering Rules
Minimum Quantity.
Maximum Quantity.
Lead Time (vendor/manufacturing).
Preferred Vendors.
3. Valuation Setup
Valuation Method:
Manual (stock moves do not affect accounting).
Automated (stock moves post accounting entries).
Costing Method:
Standard Price.
AVCO (Average Cost).
FIFO.
Define stock input, output, and valuation accounts per product category.
4. Business Process Flows
4.1. Inbound Flow (Purchases)
Create Purchase Order (PO).
Receive goods in warehouse.
Quality check (optional).
Put-away strategy (auto move to location).
Vendor bill posted.
4.2. Outbound Flow (Sales)
Create Sales Order (SO).
Reservation of stock.
Picking list generated.
Delivery order validated.
Customer invoice generated.
4.3. Internal Movements
Replenishment (between locations/warehouses).
Automatic rules (based on reordering rules).
4.4. Stock Adjustments
Opening stock (implementation phase).
Regular cycle counts.
Annual stock taking.
4.5. Returns
Customer returns → back to stock / scrap.
Vendor returns → debit note & goods return.
5. Advanced Features
Barcode Integration – Scan → Confirm moves.
Batch Picking / Wave Picking – Optimize large orders.
Cross-Docking – Directly move from receipts → delivery without stocking.
Drop shipping – Vendor delivers directly to customer.
Consignment – Stock owned by supplier until sold.
Multi-Company Setup – Each company has its own warehouse or shared warehouse.
6. Reporting & Analytics
Stock Valuation Report.
Inventory Ageing (how long stock is in warehouse).
Forecasted Inventory.
Product Moves (traceability).
Reordering Report.
7. Testing (UAT)
Run scenarios like:
Vendor delivers items with lot numbers.
Customer returns 1 damaged product.
Sales order shipped partially.
Automatic replenishment triggered.
Inventory valuation matches accounting.
Checklist for the Implementers
Pre-Implementation
Identify business goals for inventory (traceability, costing, multi-warehouse, etc.).
Gather existing processes (inbound, outbound, transfers, returns).
Collect product master data (names, categories, units of measure).
Collect warehouse structure (locations, racks, zones).
Decide on accounting method (automated/manual valuation).
Confirm costing method (Standard, FIFO, AVCO).
Define integration needs (Sales, Purchase, Manufacturing, Accounting, Barcode).
Configuration Phase
Create warehouse(s).
Define stock locations (Stock, Input, Output, Scrap, Transit).
Configure operation types (Receipts, Delivery Orders, Internal Transfers).
Enable multi-warehouse & multi-step routes (if required).
Set up product categories (linked to accounts).
Configure Units of Measure (base, purchase, sales units).
Configure valuation and stock accounts.
Enable lots/serial numbers (if needed).
Activate expiration dates (if applicable).
Set put-away & removal strategies (FIFO, LIFO, FEFO).
Data Setup
Create products with correct type (Storable, Consumable, Service).
Assign product category & valuation accounts.
Define vendors & vendor lead times.
Define customers
Configure reordering rules (min/max stock).
Import opening stock quantities.
Add barcodes for products (if barcode module is used).
Flows Testing
Inbound (Purchase):
Create purchase order & receive goods.
Test lot/serial tracking.
Outbound (Sales):
Create sales order & deliver goods.
Validate invoice integration.
Internal:
Perform warehouse transfer.
Check automatic replenishment rules.
Adjustments & Returns:
Perform stock adjustment.
Test vendor return flow.
Test customer return flow.
Accounting:
Validate valuation journal entries.
Reconcile stock accounts with product categories.
Reporting
Check stock valuation report.
Test traceability (lot/serial tracking).
Review forecasted inventory.
Check product moves report.
Go-Live
Import opening balances & stock levels.
Train users (warehouse staff, purchase, sales, accounting).
Freeze old system.
Set user access rights (warehouse managers, operators).
Monitor negative stock warnings.
Validate first transactions in live environment.
