Inventory and Warehousing · Odoo glossary

Inventory Turnover

Inventory turnover measures how often stock is consumed or sold over a period.

Definition

In general ERP practice

Inventory turnover measures how often stock is consumed or sold over a period. A common value-based formula is cost of goods sold divided by average inventory value, using a consistent valuation and period.

In Odoo

Odoo inventory valuation and accounting reports provide the data needed for a turnover calculation. Stock-movement quantities alone do not establish a cost-based ratio; choose the same product scope and period for the numerator and average inventory.

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