In Odoo 19, there are three key valuation approaches:
Valuation Methods
| Method | Description |
|---|---|
| Standard Cost | Fixed unit cost defined manually. Good for stable cost products. |
| Average Cost (AVCO) | Weighted average cost based on actual purchases. |
| FIFO | First-In First-Out valuation: older stock cost used first. |
When Accounting Entries Are Posted
Odoo no longer posts accounting entries at the time of physical stock moves (receipt/delivery). Instead:
Real accounting entries are generated when invoices/bills are posted.
Periodic vs Perpetual Valuation
In Odoo 19 you choose how inventory value flows into accounting:
Periodic (at Closing)
Inventory transactions don’t immediately hit accounts.
- At period end, generate a closing journal entry to reflect actual stock value in accounts.
– * Perpetual (at Invoicing)
- Inventory is live on the balance sheet once vendor bills are posted.
How to Set Up Inventory Valuation
Configure Accounting & Inventory Settings
Go to Accounting > Settings.
Choose Inventory Valuation: Periodic (at closing) or Perpetual (at invoicing).
Product Category Setup
Inventory valuation is controlled per Product Category:
Go to Inventory > Configuration > Product Categories.
Set:
Inventory Valuation: Automated
Costing Method: Standard / AVCO / FIFO
Linked valuation accounts (Inventory, Variation, etc.) if needed.