December is busy enough: customers still want deliveries, the accountant is asking for figures and somewhere in between the stock has to be counted. For the annual accounts only one thing matters: does the inventory value on the balance sheet as at 31 December match what is actually in the warehouse? With Odoo, that need not mean working through the night, provided you tackle it step by step.
How Odoo values inventory
With automated inventory valuation (perpetual valuation), Odoo creates a journal entry immediately with every stock move: a receipt increases the Inventory balance sheet account, a delivery posts the cost price to the profit and loss account. The value per product follows the chosen method — standard price, average cost (AVCO) or FIFO. In theory, warehouse and accounts therefore always stay in step. In practice, differences creep in, and you want those surfaced before the year-end close.
The check as at 31 December
- Count the physical stock and process the count via an inventory adjustment in Odoo, with 31 December as the accounting date.
- Open Inventory → Reporting → Valuation and set the date to 31-12.
- Compare the total with the balance of the Inventory balance sheet account in Accounting → Reporting → Balance Sheet.
- Found a difference? Look for manual entries on the inventory account or products without a linked inventory category.
Common causes of differences
- Journal entries posted directly to the inventory account, bypassing Odoo's inventory module.
- Product categories where the input and output accounts are configured incorrectly.
- Receipts or deliveries processed in January that economically belong to December.
An installation company in Breda found a difference of €18,000 this way: it turned out one product category had still been on manual valuation since the migration.
Finally
Practical tip: set the Lock Date in the accounting settings immediately after the close. That way nobody can accidentally post a transaction on 30 December after the fact and disturb your verified figures. Need help with the year-end close in Odoo? Contact DAADit Group, we are happy to think it through with you.
December is busy enough: customers still want their orders, the accountant asks for figures, and somewhere in between the stock needs counting. For the annual accounts only one thing matters: does the inventory value on the balance sheet as of 31 December match what is actually in the warehouse? With Odoo that does not have to mean late nights, as long as you work through it step by step.
How Odoo values your inventory
With automated inventory valuation (perpetual valuation), Odoo creates a journal entry on every stock movement: a receipt increases the Inventory balance sheet account, a delivery books the cost price to the P&L. The value per product follows the chosen method — standard price, average cost (AVCO) or FIFO. In theory, warehouse and bookkeeping always stay in sync. In practice, differences creep in, and you want them on the table before closing the year.
The year-end check
- Count the physical stock and process the count as an inventory adjustment in Odoo, dated 31 December.
- Open Inventory → Reporting → Valuation and set the date to 31-12.
- Compare the total with the balance of the Inventory account in Accounting → Reporting → Balance Sheet.
- Found a difference? Look for manual entries on the inventory account or products in a category without proper stock accounts.
Common causes of differences
- Journal entries posted directly to the inventory account, bypassing Odoo's stock module.
- Product categories with the input and output accounts configured incorrectly.
- Receipts or deliveries processed in January that economically belong to December.
An installation company in Breda traced an 18,000 euro difference this way: one product category had been left on manual valuation ever since their migration.
One last thing
Practical tip: set the lock date in the accounting settings immediately after closing. That way nobody can accidentally post a movement on 30 December and disturb your audited figures. Need help with your year-end closing in Odoo? Get in touch with DAADit Group — we are happy to think along.