User Training Guide

Odoo Inventory Module

A practical, role-based guide for SME warehouse and purchasing teams implementing or using Odoo Inventory in Malaysia — from procurement through to multi-warehouse stock visibility.

Procurement

This is the front end of the purchase-to-pay cycle: turning a stock need into a request for quotation, comparing vendor responses, and confirming a purchase order. Typically owned by the purchasing officer, with department heads or the finance manager approving larger orders.

1.1 Process flow

Identify the need — manually, or automatically via a replenishment rule (see Section 5).
Create a request for quotation (RFQ), adding the vendor, products, quantities and expected delivery date.
Send the RFQ to one or more vendors for pricing.
Compare vendor responses on price, lead time and terms.
Confirm the chosen RFQ into a purchase order (PO).
Track the PO until the vendor confirms shipment or delivery date.

1.2 Key fields to know

RFQ / PO screen
Field	What it means / why it matters
Vendor	The supplier the RFQ is sent to — pricing and lead times are often vendor-specific.
Expected arrival	The date used to plan receipts and downstream production or sales commitments.
Quantity	What’s being ordered — this is what the 3-way match checks against on receipt.
Unit price	Agreed cost per unit — should match what the vendor bill later shows.
Status	RFQ → Purchase Order → Done. Only a confirmed PO triggers an expected receipt.

Common mistake: confirming a PO before comparing at least one alternative vendor quote for non-routine purchases — keep RFQs open long enough to compare, even informally, before committing.

Warehouse operations

This covers the physical movement of stock once it’s in your control: receiving it, putting it away, moving it internally, and getting it back out the door to a customer. Typically owned by the warehouse supervisor and storekeepers.

2.1 Receipts

Open the receipt generated automatically from the confirmed purchase order.
Count and verify the physical delivery against the expected quantities.
Record any shortage, damage or over-delivery directly on the receipt lines.
Validate the receipt — this updates on-hand stock and feeds the 3-way match in Accounting.

2.2 Putaway

Putaway determines where received stock is stored. For a simple SME warehouse this may be a single default location; for a larger operation, putaway rules can route specific products to specific zones (e.g. cold storage, bulk racking) automatically.

2.3 Internal transfers

Used to move stock between locations within or across warehouses — for example from a receiving bay to a picking shelf, or between two branch warehouses.

2.4 Picking, packing and delivery

A delivery order is created automatically when a sales order is confirmed.
Picking: the warehouse team collects the ordered items from their storage location.
Packing: items are packed and, if used, assigned to packages or shipping units.
Delivery: the shipment is validated and dispatched, which reduces on-hand stock.

2.5 Key fields to know

Transfer screen
Field	What it means / why it matters
Source / Destination location	Where stock is moving from and to — drives what the stock report shows at each stage.
Operation type	Whether this is a Receipt, Delivery, Internal Transfer or Manufacturing move — determines the default locations and sequence used.
Demand vs Done quantity	What was expected vs what was actually moved — a mismatch should be investigated, not silently validated.
Backorder	Created automatically when only part of a transfer is completed, so the remaining quantity isn’t lost from tracking.

Common mistake: validating a transfer with the default (expected) quantity without checking it against what was physically counted — this is the single biggest cause of stock discrepancies in SME warehouses.

Routes & rules

Routes define the path stock takes through your warehouse and business — for example, whether goods go straight from receiving to stock, or pass through a quality check first. Usually configured once by the system administrator, but warehouse staff should understand how it shapes the transfers they see.

3.1 How routes work

A route is a defined sequence of stock moves — e.g. Receipt → Quality Check → Stock, or Stock → Pack → Ship.
Routes are built from rules, each rule saying “when stock is needed at location A, pull or push it from location B.”
Common route strategies: one-step (receive directly into stock), two-step (receive into an input area, then a stock move), and three-step (add a quality or staging step before either).
Routes can be set globally, per warehouse, or per product — a high-value item might use a stricter route than a bulk commodity.

3.2 What warehouse staff need to know

Recognise which route a product follows — it explains why some receipts create one transfer and others create two or three in sequence.
Complete each step of a multi-step route in order; skipping a step (e.g. validating a receipt without the quality-check transfer) breaks the stock trail.
Raise it with the administrator if a product seems to be following the wrong route — don’t try to work around it manually.

Why this matters: routes are what make Odoo’s stock numbers trustworthy in a multi-step warehouse — understanding the sequence prevents staff from “fixing” what looks like a stuck transfer by validating it out of order.

Inventory valuation

Every stock movement has a cost, and Odoo can post that cost to the accounting books automatically as it happens. Configuration is owned by the system administrator or finance manager, but warehouse staff should understand how their transfers affect it.

4.1 Costing methods

Costing method
Method	What it means / why it matters
FIFO (First In, First Out)	Stock is valued and consumed in the order it was received — the oldest cost layer is used first. Common where purchase prices fluctuate and accurate margin tracking matters.
Average cost	A running weighted average of all received costs is used for every unit — simpler to explain, smooths out price fluctuations.
Standard price	A fixed cost per product, set manually and updated periodically — variances from actual purchase price are tracked separately.

4.2 How it connects to Accounting

With automated (perpetual) valuation, every receipt and delivery posts a journal entry immediately — stock value on the Balance Sheet updates in real time.
Cost of Goods Sold (COGS) is recognised automatically when a delivery is validated, matching revenue and cost in the same period.
Any variance between a PO’s expected price and the vendor bill’s actual price is reconciled through a dedicated price difference account.

Why this matters: the costing method is set at the product category level and is difficult to change once transactions exist — confirm the right method with your accountant before go-live, not after.

Replenishment

Replenishment automates the decision of when to reorder stock, so purchasing doesn’t rely on someone noticing a shelf is empty. Set up by the purchasing officer or administrator, and reviewed periodically as demand patterns change.

5.1 Reordering rules

Set a minimum quantity (reorder point) and a maximum quantity for a product at a given location.
When on-hand plus incoming stock falls to or below the minimum, Odoo automatically proposes a purchase (or manufacturing) order.
The proposed order quantity brings stock back up toward the maximum, respecting the vendor’s minimum order quantity if set.
Review and confirm proposed orders — or let them run fully automatically once trusted.

5.2 Key fields to know

Reordering rule
Field	What it means / why it matters
Minimum quantity	The stock level that triggers a new order — should cover expected demand during the vendor’s lead time.
Maximum quantity	The target level the replenishment order restocks up to.
Lead time	How long the vendor takes to deliver — factored in so stock doesn’t run out while the order is in transit.
Trigger: Auto vs Manual	Auto creates the order automatically; Manual only proposes it for a buyer to review and confirm.

Common mistake: setting reordering rules once at go-live and never revisiting them. Demand shifts — review minimum/maximum quantities quarterly, especially for seasonal or fast-moving items.

Barcode scanning

Barcode scanning speeds up warehouse operations and removes manual entry errors from receipts, transfers, picking and stock counts. Relevant to storekeepers and anyone physically handling stock day to day.

6.1 What it’s used for

Receiving: scan each item as it arrives to confirm quantities against the expected receipt, instead of counting and typing manually.
Picking and packing: scan products as they’re picked to confirm the right item and quantity before it leaves the warehouse.
Internal transfers: scan source and destination locations to reduce mis-shelving.
Inventory counts (stocktakes): scan products in a physical count and let Odoo compare the count directly to the system quantity.

6.2 Getting started

Confirm barcodes are set on product records — either the vendor’s own barcode or an internally generated one.
Print and apply location and product barcodes around the warehouse if not already labelled.
Open the Barcode app on a handheld device or phone and select the operation to perform (Receipts, Deliveries, Internal Transfers, Inventory Count).
Scan sequentially through the operation; Odoo validates as you go and flags unexpected items or quantities immediately.

Why this matters: the biggest source of inventory accuracy problems in SMEs is manual data entry — barcode scanning closes that gap directly at the point where the physical stock movement happens.

Multi-warehouse & multi-location visibility

For SMEs operating more than one warehouse, branch, or storage area, Odoo tracks stock separately by location while still giving a consolidated view across the whole business. Relevant to warehouse supervisors, purchasing, and management reviewing overall stock position.

7.1 How it’s structured

A warehouse is a top-level physical site (e.g. “KL Warehouse”, “Penang Branch”).
Each warehouse contains locations — stock, input, output, quality, and any custom zones defined for that site.
Stock can be viewed per location, per warehouse, or consolidated across the whole company.
Transfers between warehouses are tracked explicitly, so stock in transit between sites is always visible, not just “missing” from one and “appearing” in another.

7.2 What to check regularly

Use the Inventory Overview (kanban) to see at-a-glance stock health per warehouse.
Filter stock reports by location when investigating a specific site’s numbers, rather than relying on the company-wide total.
Review inter-warehouse transfers in transit, especially at month-end, so stock isn’t double-counted or missed in either location’s valuation.

Common mistake: assuming company-wide stock figures reflect what’s available at a specific branch. Always check location-level stock before promising availability to a customer served from a particular warehouse.

Appendix

Quick reference

A.1 Menu paths at a glance

Area	Menu path
Procurement	Purchase → Orders → Requests for Quotation
Receipts	Inventory → Operations → Receipts
Internal transfers	Inventory → Operations → Transfers
Deliveries	Inventory → Operations → Deliveries
Routes	Inventory → Configuration → Routes
Valuation settings	Inventory → Configuration → Product Categories
Replenishment	Inventory → Operations → Replenishment
Barcode app	Inventory → Barcode
Warehouses	Inventory → Configuration → Warehouses
Stock reporting	Inventory → Reporting → Stock

A.2 Who typically trains on what

Role	Focus areas
Purchasing officer	Procurement, replenishment (Sections 1, 5)
Warehouse supervisor / storekeeper	Warehouse operations, barcode scanning, multi-location visibility (Sections 2, 6, 7)
Logistics coordinator	Warehouse operations, routes & rules (Sections 2–3)
Finance manager	Inventory valuation, for its link to Accounting (Section 4)
System administrator	Routes, valuation configuration, warehouse setup (Sections 3–4, 7)

For the roles who should be trained on Accounting and Manufacturing modules, see the companion training guides for those areas.