How to use product categories in Odoo 17 to organize your Inventory

Product categories in Odoo are essential for organizing and managing your inventory efficiently. They help you group similar products together, making it easier to track stock levels, analyze sales data, and apply specific configurations such as tax rules, accounting entries, or routes for purchasing and manufacturing.

1. How to use product categories in Odoo 17 to organize your Inventory Enterprise

2. Introduction Enterprise Product categories in Odoo are essential for organizing and managing your inventory efficiently. They help you group similar products together, making it easier to track stock levels, analyze sales data, and apply specific configurations such as tax rules, accounting entries, or routes for purchasing and manufacturing.

3. Enterprise Let’s begin by taking Product Category from the Inventory module’s Configuration menu.

4. Enterprise We can see there the list of all pre-configured product categories. This Product categories allows us to handle the inventory by categorizing them into different categories or sections and they can be managed as a hierarchy also. Click on the "New" button, initiating the creation of a brand-new product category. It allows us to fill in the fields as below.

5. Enterprise Category name can be given as the first field’s value. The product category can be set as a sub category by filling in the Parent Category field. It denotes a superior category capable of encompassing subordinate subcategories, often referred to as child categories. Under LOGISTICS tab, the Removal Strategy , Costing Method and Reserve Packagings can be configured. Also the accounts for recording the Income and Expense can also be set for the product category.

6. Enterprise The Force Removal Strategy in Odoo refers to how the system determines which products to remove from inventory when fulfilling sales orders or other inventory operations. It's particularly relevant when managing products with expiration dates, lots, or serial numbers. They are

7. Enterprise First In, First Out (FIFO): This removes the oldest inventory items first. It’s commonly used for products where freshness is important, such as perishable goods. Last In, First Out (LIFO): The LIFO strategy removes the newest inventory items first. It is less common and generally used in specific industries. Closest Location: This system prioritizes the removal of products from the location that is physically closest to the delivery or production point. Least Packages: This strategy is designed to optimize the picking process by minimizing the number of packages/containers that need to be handled to fulfill an order. This strategy is particularly useful in environments where products are stored in multiple packages or lots. First Expiry, First Out (FEFO): This prioritizes the removal of products closest to their expiration date, regardless of when they were received.

8. Enterprise The Costing Methods in Odoo are crucial for determining how the cost of goods sold (COGS) and inventory valuation are calculated. Choosing the right costing method depends on the nature of your business, the type of products you sell, and your accounting requirements. Odoo offers three primary costing methods: Standard Price (Manual): The cost price of the product is manually set and does not change unless manually updated. This makes the product cost fixed and does not reflect fluctuations in purchase prices.

9. Enterprise 2. First In, First Out (FIFO): Here, the products that are purchased or manufactured first are sold first. The cost of goods sold is based on the oldest available stock. 3. Average Cost (Weighted Average): Here, the cost of goods is calculated as the weighted average of all units available in inventory. Every time new inventory is received, the average cost is recalculated. Configuring product categories in Odoo is a crucial task for organizing your inventory, streamlining processes, and ensuring that specific rules and settings are consistently applied across similar products.

10. For More Info. Check our company website for related blogs and Odoo book. Check our YouTube channel for functional and technical videos in Odoo. Enterprise www.cybrosys.com