Need explanation for stock accounting system

Asked by Cuong on 2011-04-14

Dear developers,

I have some vague concepts in my mind about stock accounting in OpenERP. I need someone in accounting to help me explain this.
1. OpenERP does not distinguish periodical stock from perpetual stock accounting
When enabling Inventory Valuation property to 'Real Time', it automatically calculate 'Stock Input Account', after reception, it transfers Stock Input Account to 'Stock Variation Account'.

I think OpenERP should do like this. It should provide 2 options: periodical or perpetual inventory method.
* with option 'periodical inventory method', we should have one account Stock Input Account (expense type, on P/L statement). At the end of period, Stock Variation Account should be updated to reflect inventory closing balance. Stock Output Account is used for COGS calculation (at the end of period).

* with option 'perpetual inventory method', we should update 'Stock Variation Account' directly when purchase/sell products. Stock Output Account is still used for COGS calculation concurrently.

These follow accounting principles that I've learned. OpenERP is merging these, makes setting up accounting system difficult.

2. OpenERP should support FIFO/LIFO costing method. Currently, it supports only fixed cost and average cost.

3. OpenERP has Expense Account in product form. I think it's redundant, making issues.
* with 'periodical inventory method', Expense Account should be 'Stock Input Account' (Expense type, P/L statement)

* with 'perpetual inventory method', Expense Account should be 'Stock Variation Account' (Asset type, Balance sheet statement)

Anyway, with Expense Account, Stock Input Account, Stock Variation Account, these are redundant, making issues to accounting system. It should be the same account, depending on context of inventory method.


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Cuong (bhcuong2008) said : #1

One more info, Stock Variation Account should be made for each product, not for the whole category. So that we can know the valuation of each products in stock at any time.


Cristian Salamea (ovnicraft) said : #2

Can you report your last comment as bug ?


Cuong (bhcuong2008) said : #3


I've already reported my question as bug, including the last comment.


Ferdinand (office-chricar) said : #4

we have modified the v5 code - creating a module is very cumbersome, because it is neccessary to hack the create/write operations which are not isolated so no hook is possible
in v6 it's a bit better, but the modules are not ready yet

what it does (or is designed to do):
* purchase - add qty and value taken from PO
* internal move (also with lot) : take the avg price of the source stock (inlcuding lot)
* sales - same as internal, but store also the sales price.

* every stock moves creates account move lines with these values

so the stock value can be determined for every point in time = matches the account balance

1) many
2) performance

it will take some 1-2 month to be ready

Sukmaya (soekmo) said : #5

it almost one year to wait this issue to be fixed...

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