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I have set the costing method as FIFO and Inventory Valuation as Automated and set the Stock Valuation, Stock Interim(Recieved), Stock Interim(Delivered), Stock Journal accounts.

I have added the initial inventory using the Inventory Adjustments menu and updated the quantity.

In the balance sheet I see stock valuation account has a debit balance equal to my inventory and Stock Interim(Recieved) has a Credit balance of the same amount and cancels the stock valuation.

How to reflect the opening balance in the banace sheet correctly?
Kindly help.

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Here you may need to adjust the Stock Interim Received Account with the Undistributed Profit and Loss after entering the Account Opening balances.

Best Answer

Hi,


When adding opening inventory in Odoo using FIFO and Automated Inventory Valuation, using the Inventory Adjustments menu sets the quantities correctly but does not automatically reflect the value on the balance sheet. Odoo posts stock moves that debit the Stock Valuation account and credit the Stock Interim (Received) account, effectively canceling each other and leaving no impact in the balance sheet.


To reflect the opening stock value correctly, you need to post a manual journal entry: debit the Stock Valuation account and credit an Opening Balance (Equity) account with the total inventory value. This ensures the balance sheet shows the inventory as an asset. The Stock Interim account created by Odoo during the adjustment can be ignored for this initial entry.


This approach aligns the balance sheet with the actual inventory value and is particularly useful when starting Odoo mid-year, allowing the opening balances to match external accounting records.



Hope it helps

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Best Answer

You're facing a classic issue with Odoo's perpetual inventory system. Mixing financial and inventory data can get tricky! With FIFO and automated valuation, your balance sheet oughta show an opening balance as an asset. That debit in stock valuation and credit in stock interim (received), usually means your opening balance ain't fully reconciled in accounting terms yet.


I’d say double-check everything aligns between your inventory and financial modules. Often, there’s a mismatch if anythign is still manually set or hasn’t posted fully to the accounting module. Make sure the initial inventory is validated properly under inventory adjustments, so Odoo can do its magic with automatic inventory valuation.


Also, pop over to accounting > journal entries, and make sure the opening stock adjustment's got the right counterpart entries. It should balance with your bank balance or stock valuation adjustments. If adjustments aren’t visible or look weirdly handled, there might be a missing accounting entry or mix-up somewhere.


When dealing with opening balances, collaborating with your accounting team is super important. They might need to make a manual journal entry to get things right. It could be a real meticulous process, but getting this straight will make sure your balance sheet shows accurate inventory value. And yeah, Odoo’s logic here can be a bit confusing sometimes!

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