3
.. i18n: single: stock; double-entry
7
single: stock; double-entry
9
.. i18n: Understanding double-entry stock management
10
.. i18n: ===========================================
13
Understanding double-entry stock management
14
===========================================
16
.. i18n: To illustrate this concept of stock management, see how stock moves are generated by the following
20
To illustrate this concept of stock management, see how stock moves are generated by the following
23
.. i18n: * Receiving products from a supplier,
25
.. i18n: * Delivery to a customer,
27
.. i18n: * Inventory operation for lost materials,
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.. i18n: * Manufacturing.
32
* Receiving products from a supplier,
34
* Delivery to a customer,
36
* Inventory operation for lost materials,
41
.. i18n: single: module; stock
47
.. i18n: The structure of stock locations is shown by the figure :ref:`fig-stloctree`. Stocks are assumed to be totally
48
.. i18n: empty and no operation is in progress nor planned.
51
The structure of stock locations is shown by the figure :ref:`fig-stloctree`. Stocks are assumed to be totally
52
empty and no operation is in progress nor planned.
54
.. i18n: If you order '30 bicycles' from a supplier, OpenERP will then do the following operations after the
55
.. i18n: receipt of the products:
58
If you order '30 bicycles' from a supplier, OpenERP will then do the following operations after the
59
receipt of the products:
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.. i18n: .. table:: Stock Move operation from Suppliers to Stock
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.. i18n: ================================================== =============
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.. i18n: Location Products
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.. i18n: ================================================== =============
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.. i18n: Partner Locations > Suppliers > Suppliers -30 bicycles
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.. i18n: Physical Locations > Tiny SPRL > Stock +30 bicycles
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.. i18n: ================================================== =============
71
.. table:: Stock Move operation from Suppliers to Stock
73
================================================== =============
75
================================================== =============
76
Partner Locations > Suppliers > Suppliers -30 bicycles
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Physical Locations > Tiny SPRL > Stock +30 bicycles
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================================================== =============
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.. i18n: If you deliver 2 bicycles to a European customer you will get the following transactions for the
84
If you deliver 2 bicycles to a European customer you will get the following transactions for the
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.. i18n: .. table:: Stock Move operation from Stock to European Customers
89
.. i18n: ================================================== =============
90
.. i18n: Location Products
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.. i18n: ================================================== =============
92
.. i18n: Physical Locations > Tiny SPRL > Stock -2 bicycles
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.. i18n: Partner Locations > Customers > European Customers +2 bicycles
94
.. i18n: ================================================== =============
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.. table:: Stock Move operation from Stock to European Customers
99
================================================== =============
101
================================================== =============
102
Physical Locations > Tiny SPRL > Stock -2 bicycles
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Partner Locations > Customers > European Customers +2 bicycles
104
================================================== =============
106
.. i18n: When the two operations are complete you'll then get the following stock in each location:
109
When the two operations are complete you'll then get the following stock in each location:
111
.. i18n: .. table:: Resulting stock situation
113
.. i18n: ================================================== =============
114
.. i18n: Location Products
115
.. i18n: ================================================== =============
116
.. i18n: Partner Locations > Suppliers > Suppliers -30 bicycles
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.. i18n: Physical Locations > Tiny SPRL > Stock +28 bicycles
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.. i18n: Partner Locations > Customers > European Customers +2 bicycles
119
.. i18n: ================================================== =============
122
.. table:: Resulting stock situation
124
================================================== =============
126
================================================== =============
127
Partner Locations > Suppliers > Suppliers -30 bicycles
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Physical Locations > Tiny SPRL > Stock +28 bicycles
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Partner Locations > Customers > European Customers +2 bicycles
130
================================================== =============
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.. i18n: So you can see that the sum of the stocks of a product in all the locations in OpenERP is always
133
.. i18n: zero. In accounting you'd say that the sum of the debits is equal to the sum of the credits.
136
So you can see that the sum of the stocks of a product in all the locations in OpenERP is always
137
zero. In accounting you'd say that the sum of the debits is equal to the sum of the credits.
139
.. i18n: Partner locations (customers and suppliers) aren't located under your company in the hierarchical
140
.. i18n: structure, so their contents are not considered as part of your own stock. So if you look just at
141
.. i18n: the physical locations inside your own company those two bicycles are no longer in your company.
142
.. i18n: They're not in your own physical stock but it's still very useful to see them in your customer's
143
.. i18n: stock because that helps when you carry out detailed stock management analysis.
146
Partner locations (customers and suppliers) aren't located under your company in the hierarchical
147
structure, so their contents are not considered as part of your own stock. So if you look just at
148
the physical locations inside your own company those two bicycles are no longer in your company.
149
They're not in your own physical stock but it's still very useful to see them in your customer's
150
stock because that helps when you carry out detailed stock management analysis.
152
.. i18n: .. note:: Accounts
154
.. i18n: In managing stock, a gap between the data in the software and real quantities in stock is
155
.. i18n: difficult to avoid.
156
.. i18n: Double-entry stock management gives twice as many opportunities to find an error.
157
.. i18n: If you forget two items of stock this error will automatically be reflected in the
158
.. i18n: counterpart's location.
163
In managing stock, a gap between the data in the software and real quantities in stock is
165
Double-entry stock management gives twice as many opportunities to find an error.
166
If you forget two items of stock this error will automatically be reflected in the
167
counterpart's location.
169
.. i18n: You can make a comparison with accounting, where you'll easily find an error because you can look
170
.. i18n: for an anomaly in an account or in the counterparts: if there's not enough in a bank account then that's
171
.. i18n: probably because someone's forgotten to enter a customer's invoice payment. You always know that the
172
.. i18n: sum of debits must equal the sum of the credits in both accounting and OpenERP's stock management.
175
You can make a comparison with accounting, where you'll easily find an error because you can look
176
for an anomaly in an account or in the counterparts: if there's not enough in a bank account then that's
177
probably because someone's forgotten to enter a customer's invoice payment. You always know that the
178
sum of debits must equal the sum of the credits in both accounting and OpenERP's stock management.
180
.. i18n: In accounting, all documents lead to accounting entries that form the basis of management
181
.. i18n: accounting. If you create invoices or code in statements of account, for example, the results of the
182
.. i18n: operations are accounting entries on accounts. And it's the same for stock management in OpenERP.
183
.. i18n: All stock operations are carried out as simple stock moves. Whether you pack items, or manufacture
184
.. i18n: them, or carry out a stock inventory operation, stock moves are carried out every time.
187
In accounting, all documents lead to accounting entries that form the basis of management
188
accounting. If you create invoices or code in statements of account, for example, the results of the
189
operations are accounting entries on accounts. And it's the same for stock management in OpenERP.
190
All stock operations are carried out as simple stock moves. Whether you pack items, or manufacture
191
them, or carry out a stock inventory operation, stock moves are carried out every time.
193
.. i18n: You've seen a fairly simple example of goods receipt and product delivery, but some operations are
194
.. i18n: less obvious – a stock inventory operation, for example. An inventory operation is carried out
195
.. i18n: when you compare the stock shown in software with real stock numbers counted in the stores.
198
You've seen a fairly simple example of goods receipt and product delivery, but some operations are
199
less obvious – a stock inventory operation, for example. An inventory operation is carried out
200
when you compare the stock shown in software with real stock numbers counted in the stores.
203
.. i18n: single: stock; inventory operation
204
.. i18n: single: stock; stock check
208
single: stock; inventory operation
209
single: stock; stock check
211
.. i18n: In OpenERP, with its double-entry stock management, you'd use stock moves for this inventory
212
.. i18n: operation. That helps you manage your stock traceability. If there are 26 Bicycles in real stock but
213
.. i18n: OpenERP shows 28 in the system. You then have to reduce the number in OpenERP to 26. This
214
.. i18n: reduction of 2 units is considered as a loss or destruction of products and the correction is
215
.. i18n: carried out as in the following operation:
218
In OpenERP, with its double-entry stock management, you'd use stock moves for this inventory
219
operation. That helps you manage your stock traceability. If there are 26 Bicycles in real stock but
220
OpenERP shows 28 in the system. You then have to reduce the number in OpenERP to 26. This
221
reduction of 2 units is considered as a loss or destruction of products and the correction is
222
carried out as in the following operation:
224
.. i18n: .. table:: Inventory operation to adjust stock
226
.. i18n: ================================================== =============
227
.. i18n: Location Products
228
.. i18n: ================================================== =============
229
.. i18n: Physical Locations > Tiny SPRL > Stock -2 bicycles
230
.. i18n: Virtual Locations > Inventory Loss +2 bicycles
231
.. i18n: ================================================== =============
234
.. table:: Inventory operation to adjust stock
236
================================================== =============
238
================================================== =============
239
Physical Locations > Tiny SPRL > Stock -2 bicycles
240
Virtual Locations > Inventory Loss +2 bicycles
241
================================================== =============
243
.. i18n: The product stock under consideration then becomes:
246
The product stock under consideration then becomes:
248
.. i18n: .. table:: Real and counterpart stocks when operations are completed
250
.. i18n: ================================================== =============
251
.. i18n: Location Products
252
.. i18n: ================================================== =============
253
.. i18n: Partner Locations > Suppliers > Suppliers -30 bicycles
254
.. i18n: Physical Locations > Tiny SPRL > Stock +26 bicycles
255
.. i18n: Partner Locations > Customers > European Customers +2 bicycles
256
.. i18n: Virtual Locations > Inventory Loss +2 bicycles
257
.. i18n: ================================================== =============
260
.. table:: Real and counterpart stocks when operations are completed
262
================================================== =============
264
================================================== =============
265
Partner Locations > Suppliers > Suppliers -30 bicycles
266
Physical Locations > Tiny SPRL > Stock +26 bicycles
267
Partner Locations > Customers > European Customers +2 bicycles
268
Virtual Locations > Inventory Loss +2 bicycles
269
================================================== =============
271
.. i18n: This example shows one of the great advantages of this approach in terms of performance analysis.
272
.. i18n: After a few months, you can just make a stock valuation of the location ``Virtual Locations >
273
.. i18n: Inventory Loss`` to give you the value of the company's stock losses in the given period.
276
This example shows one of the great advantages of this approach in terms of performance analysis.
277
After a few months, you can just make a stock valuation of the location ``Virtual Locations >
278
Inventory Loss`` to give you the value of the company's stock losses in the given period.
280
.. i18n: Now see how the following manufacturing operation is structured in OpenERP. To make a bicycle you
281
.. i18n: need two wheels and a frame. This means that there should be a reduction of two wheels and a frame
282
.. i18n: from real stock and the addition of a bicycle there. The consumption / production is formalized by
283
.. i18n: moving products out of and into physical stock. The stock operations for this are as follows:
286
Now see how the following manufacturing operation is structured in OpenERP. To make a bicycle you
287
need two wheels and a frame. This means that there should be a reduction of two wheels and a frame
288
from real stock and the addition of a bicycle there. The consumption / production is formalized by
289
moving products out of and into physical stock. The stock operations for this are as follows:
291
.. i18n: .. table:: Stock situation resulting from manufacture
293
.. i18n: ====================================== ========== ================================
294
.. i18n: Location Products Step
295
.. i18n: ====================================== ========== ================================
296
.. i18n: Virtual Locations > Default Production +2 Wheels Consumption of raw materials
297
.. i18n: Physical Locations > Tiny SPRL > Stock -2 Wheels Consumption of raw materials
298
.. i18n: Virtual Locations > Default Production +1 Frame Consumption of raw materials
299
.. i18n: Physical Locations > Tiny SPRL > Stock -1 Frame Consumption of raw materials
300
.. i18n: Virtual Locations > Default Production -1 Bicycle Manufacture of finished products
301
.. i18n: Physical Locations > Tiny SPRL > Stock +1 Bicycle Manufacture of finished products
302
.. i18n: ====================================== ========== ================================
305
.. table:: Stock situation resulting from manufacture
307
====================================== ========== ================================
308
Location Products Step
309
====================================== ========== ================================
310
Virtual Locations > Default Production +2 Wheels Consumption of raw materials
311
Physical Locations > Tiny SPRL > Stock -2 Wheels Consumption of raw materials
312
Virtual Locations > Default Production +1 Frame Consumption of raw materials
313
Physical Locations > Tiny SPRL > Stock -1 Frame Consumption of raw materials
314
Virtual Locations > Default Production -1 Bicycle Manufacture of finished products
315
Physical Locations > Tiny SPRL > Stock +1 Bicycle Manufacture of finished products
316
====================================== ========== ================================
318
.. i18n: So you've now got the outcome you need from the consumption of raw materials and the manufacture of
319
.. i18n: finished products.
322
So you've now got the outcome you need from the consumption of raw materials and the manufacture of
325
.. i18n: .. note:: Assessing created value
327
.. i18n: You might already have noticed a useful effect of this approach:
328
.. i18n: if you do a stock valuation in the ``Default Production`` location you get
329
.. i18n: a statement of value created by your company (as a negative amount).
330
.. i18n: Stock valuation in any given location is calculated by multiplying quantities of products in
331
.. i18n: stock by their cost.
332
.. i18n: In this case the raw material value is deducted from the finished product value.
335
.. note:: Assessing created value
337
You might already have noticed a useful effect of this approach:
338
if you do a stock valuation in the ``Default Production`` location you get
339
a statement of value created by your company (as a negative amount).
340
Stock valuation in any given location is calculated by multiplying quantities of products in
342
In this case the raw material value is deducted from the finished product value.
344
.. i18n: .. Copyright © Open Object Press. All rights reserved.
347
.. Copyright © Open Object Press. All rights reserved.
349
.. i18n: .. You may take electronic copy of this publication and distribute it if you don't
350
.. i18n: .. change the content. You can also print a copy to be read by yourself only.
353
.. You may take electronic copy of this publication and distribute it if you don't
354
.. change the content. You can also print a copy to be read by yourself only.
356
.. i18n: .. We have contracts with different publishers in different countries to sell and
357
.. i18n: .. distribute paper or electronic based versions of this book (translated or not)
358
.. i18n: .. in bookstores. This helps to distribute and promote the OpenERP product. It
359
.. i18n: .. also helps us to create incentives to pay contributors and authors using author
360
.. i18n: .. rights of these sales.
363
.. We have contracts with different publishers in different countries to sell and
364
.. distribute paper or electronic based versions of this book (translated or not)
365
.. in bookstores. This helps to distribute and promote the OpenERP product. It
366
.. also helps us to create incentives to pay contributors and authors using author
367
.. rights of these sales.
369
.. i18n: .. Due to this, grants to translate, modify or sell this book are strictly
370
.. i18n: .. forbidden, unless Tiny SPRL (representing Open Object Press) gives you a
371
.. i18n: .. written authorisation for this.
374
.. Due to this, grants to translate, modify or sell this book are strictly
375
.. forbidden, unless Tiny SPRL (representing Open Object Press) gives you a
376
.. written authorisation for this.
378
.. i18n: .. Many of the designations used by manufacturers and suppliers to distinguish their
379
.. i18n: .. products are claimed as trademarks. Where those designations appear in this book,
380
.. i18n: .. and Open Object Press was aware of a trademark claim, the designations have been
381
.. i18n: .. printed in initial capitals.
384
.. Many of the designations used by manufacturers and suppliers to distinguish their
385
.. products are claimed as trademarks. Where those designations appear in this book,
386
.. and Open Object Press was aware of a trademark claim, the designations have been
387
.. printed in initial capitals.
389
.. i18n: .. While every precaution has been taken in the preparation of this book, the publisher
390
.. i18n: .. and the authors assume no responsibility for errors or omissions, or for damages
391
.. i18n: .. resulting from the use of the information contained herein.
394
.. While every precaution has been taken in the preparation of this book, the publisher
395
.. and the authors assume no responsibility for errors or omissions, or for damages
396
.. resulting from the use of the information contained herein.
398
.. i18n: .. Published by Open Object Press, Grand Rosière, Belgium
401
.. Published by Open Object Press, Grand Rosière, Belgium
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removed
i18n/ru/source/book/5/5_14_Stock/5_14_Stock_illustration.rst
