Accounting · Odoo glossary
Inventory Valuation
Learn what inventory valuation means, the difference between costing and accounting timing, and how Odoo 19 separates stock value from accounting entries.
Definition
In general ERP practice
Inventory valuation assigns a monetary value to goods held by a business. It supports inventory reporting and the calculation of costs associated with selling or consuming those goods.
A costing method determines which cost is assigned to stock and consumption. The timing of financial entries is a separate policy question. A quantity report and a financial balance therefore need to be compared using a consistent date and scope.
In Odoo
Odoo supports Standard Price, FIFO and average costing (AVCO). In Odoo 19, the Inventory app updates stock value from physical movements, while accounting valuation follows the configured financial process.
Accounting offers Periodic (at closing) and Perpetual (at invoicing) valuation. The Inventory Valuation review reports the difference between recorded accounting value and stock value; a stock closing entry synchronises them. Consequently, a receipt or delivery is not a universal guarantee of an immediate matching general-ledger entry. Product-category settings can override company defaults.
Separate cost from posting time
Costing method
How cost is assigned: standard price, FIFO or average cost.
Stock valuation
The value associated with physical inventory movements.
Accounting valuation
The value recorded through invoicing and/or closing entries under the configured method.
Why the version matters
Older Odoo explanations may describe accounting entries at each stock movement. Check the documented behaviour for the version in use before applying a reconciliation procedure or explaining a difference between Inventory and Accounting.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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