Problem Statement:

• The Profit & Loss Statement does not consider Opening Inventory Valuation and Closing Inventory Valuation, leading to incorrect profit calculations.
• When stock is uploaded as an opening balance, Odoo does not include its value in Cost of Goods Sold (COGS).
• As a result, the system calculates profit incorrectly by ignoring the cost of opening inventory.

Example Scenario

1. Opening Inventory: 2 pcs (uploaded as an opening balance) at ₹10 each → Total value: ₹20.
2. Purchase: 1 more piece at ₹10 → New total: 3 pcs, total value: ₹30.
3. Sale: 2 pcs sold for ₹20 each → Total Sales Revenue: ₹40.
4. Expected COGS Calculation:
   • If inventory valuation is correctly applied, COGS should be: 2 pcs × ₹10 = ₹20
   • Correct Profit = ₹40 - ₹20 = ₹20
5. Actual Odoo Calculation (Incorrect):
   • Odoo ignores opening stock value and considers only the latest purchase.
   • It calculates profit as ₹40 (sales) - ₹10 (latest purchase) = ₹30 (incorrect profit)