User TrainingSample

Stock Management

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Open ERP’s stock management is very simple, flexible and complete. It is based on the concept of double entry. The system can be described by Lavoisier’s maxim “nothing lost, everything changed” or, better, “everything moved”. In OpenERP you don’t talk about disappearance, consumption or loss of products: instead you speak only of stock moves from one place to another.

The Stock Management tools provide all operations needed to manage stock: define warehouses and structure them around locations, manage inventory rotation and stock levels, execute packing orders generated by the system, calculate theoretical stock levels and automate stock valuation, create rules for automatic stock replenishment, ...

Stock Management

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Understanding double-entry stock management : If we order 30 bicycles from a supplier :

If we delivery 2 bicycles to an european customer

In each stock location, we will have :

Location Products

Partner Locations > Suppliers > Suppliers - 30 bicycles

Physical Locations > NotSoTiny > Stock + 30 bicycles

Location Products

Physical Locations > NotSoTiny > Stock - 2 bicycles

Partner Locations > Customers > European Customers + 2 bicycles

Location Products

Partner Locations > Suppliers > Suppliers - 30 bicycles

Physical Locations > NotSoTiny > Stock + 28 bicycles

Partner Locations > Customers > European Customers + 2 bicycles

Stock Management

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Understanding double-entry stock management : Inventory operation to adjust stock :

In each stock location, we will have :

Location Products

Physical Locations > NotSoTiny > Stock - 2 bicycles

Virtual Locations > Inventory Loss + 2 bicycles

Location Products

Partner Locations > Suppliers > Suppliers - 30 bicycles

Physical Locations > NotSoTiny > Stock + 26 bicycles

Partner Locations > Customers > European Customers + 2 bicycles

Virtual Locations > Inventory Loss + 2 bicycles

Exercises

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Exercise 1 - Create Stock locations

Create the following stock locations :

NotSoTiny

Output

Stock

Finishedproducts

Components

Exercises

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Exercise 1 - Create Stock locations

Create the following stock locations :

Sales Management > Configuration > Shop, verify that the “NotSoTiny” shop is correctly set up

Stock Management > Configuration > Delivery > Location, verify the default stock locations are defined Create 2 new locations with location type = “internal” and using “NotSoTiny /

Stock” location as parent location

Stock Management > Periodical Inventory > Stock Locations Structure

NotSoTiny

Output

Stock

Finishedproducts

Components

Exercises

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Exercise 2 - Create bookshelves componentsCreate the list of components :

All products are stocked All products belong to the Misc category The supplier for all products is Wood y Wood Pecker The metal cleats are stocked per unit but are bought in boxes of 20

Description Code Supp. Meth. UoM Cost Supp. Lead Time

Rear panel ARM100 PANA100 Buy PCE 10 5

Rear panel ARM200 PANA200 Buy PCE 13 5

Side panel PANLAT Buy PCE 5 5

Shelf 100 ETA100 Buy PCE 3 8

Shelf 200 ETA200 Buy PCE 4 8

Assembly section PROFIL Produce PCE 2 /

Wood Lintel 4m LIN40 Buy Meter 8 10

Metal cleats TAQ000 Buy PCE 1 20

Exercises

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Products > Products, create the 8 new products used as bookshelves components

All 8 products with the same given category and supplier All 8 products are Stockable products, with procurement method set as

Make to Stock All products have supply method set to Buy, except the PROFIL one which

is Produce All products have a cost price, as given in the table, but the sales price

doesn’t matter, as they cannot be Sold, only Purchased (check appropriate checkboxes)

The supplier delay is set when associating a supplier to the product and defining his Delivery delay

For the metal cleats, define a new purchase UoM for the cleats : Define a “20-PACK” unit within the Unit category, and with a rate of

“0.05” with rounding precision to 1

Exercises

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Products > Products, create the new “PANA100” product

Example :

Product Name = « PANA100 »

Can be Purchased checked

Product Type = « Stockable Product »

Supply method = « Buy »

Procurement method = “Make to Stock”

Category = « Other Products / Misc »

UoM = « PCE »

Delivery delay = « 5 »

Exercises

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Exercise 3 – Set the correct stock level

To replenish the different products listed in the table above, create a new inventory. Then go to the product datasheets to verify the level of real stock for these products.

Code Stock

PROFIL 70

PANA100 15

ETA100 22

TAQ000 120

Exercises

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Exercise 3 – Set the correct stock level

To replenish the different products listed in the table above, create a new inventory. Then go to the product datasheets to verify the level of real stock for these products.

Stock Management > Periodical Inventory > New Periodical Inventory

Fill in the correct inventory lines (use the Stock location), and confirm the inventory

Open the product list to see the new stock levels.

Code Stock

PROFIL 70

PANA100 15

ETA100 22

TAQ000 120

Exercises

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Exercise 4 – Set minimum stock rules

Based on this table, create stock policies for all components of ARM100 and ARM200 products. Then test the defined policies :

Run the scheduler

On the purchase order, precise the stock destination

Validate the purchase orders

Receive the products from your supplier

Code Min Qty Max Qty

PANA100 10 20

PANA200 5 10

PANLAT 20 40

ETA100 30 60

ETA200 30 60

PROFIL 40 80

LIN40 10 20

TAQ000 200 500

Exercises

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Stock Management > Automatic Procurements > Minimum stock rules Create new minimum stock rules according to the table, using the

Components location Run the procurement schedulers via Manufacturing > Compute All Schedulers Open the list of products, and notice that stock levels have not changed yet Go to Purchase Management > Purchase orders, Confirm all orders and mark

them as “Approved by the supplier” Go back to Products > Products and notice that the Virtual stock level has now

changed to reflect the confirmed orders Go to Financial Management > Invoices > Supplier Invoices, and you will see a

draft invoice for each “approved” Purchase Order, as the “Invoicing Control” of the purchase order is set to “From Order” by default

Now proceed to Stock Management > Incoming Products, confirm the reception of the product and make the picking

Go to the products to verify that the corresponding stock moves have been generated, and that the real stock now matches the virtual stock

Key Points

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• Define stock locations, minimum stock rules

• Set stock level

• Define chained locations, MPS, Packaging, …

• Traceability

• Stock Valuation

• Import/Export

• Etc.

Stock Management