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Removal Strategies In Odoo 12

Removal Strategies In Odoo 12

Removal strategies are used in warehouse operations to select best products based on specific criteria. In Odoo there are three types of  removal strategies available in Odoo FIFO, LIFO and FEFO, These strategies will help to manage our  stock in an efficient way. Let’s discuss Removal Strategies of FIFO and LIFO In Odoo 12 with complete description with respective screen-shot. 


Let’s see general information about FIFO and LIFO.


FIFO [ First In First Out ] :-


A First In First Out strategy states that If a product was stocked first, will move out first in delivery order, after confirming a sales order.Companies should use FIFO method, If they are selling perishable products, such as fruits, vegetables, flowers, meat and meat by-product, fish and seafood, dairy products, pharmaceutical products, and chemicals.


Also companies whose selling products have short demand cycles, such as cloths, these kinds of companies have to make sure that they are not stuck with outdated clothing products.


LIFO [ Last In First Out ] :-


A Last In First Out strategy is a opposite method of FIFO, it states that if a product was stocked last will move out first in delivery order, after confirming a sales order.

Let’s see the FIFO method In action :-


Now Go To Inventory →  Configuration →  Click on Settings

Inventory Configuration In Odoo

Here you have to make sure that you have selected two options.


Option-1

Go Under Traceability section click on Lot & Serial Numbers

Lot and Serial Number In Odoo

Option-2

Go Under Warehouse section and click on Multi-Step Routes

Multi-Step Route In Odoo

After selecting these features, click on the save button.


Now click on Set Put-away Strategies on Locations
Putaway Strategies In Odoo
If you are on a different page

Go to Inventory →  Configuration →  click on Locations
Inventory Locations In Odoo
After getting on the Locations page, Click on WH/Stock record
Inventory Locations In Odoo
Inside this record you will see Removal Strategy under Logistics section click on First In First Out (FIFO) method and click on the Save button
First In First Out In Odoo
After completing this Go To Inventory →  Master Data →  Products
Products In Odoo
Here I have created a new product otherwise you can select an existing product too; so click on create button
Create a New Product Odoo
Add a Product Name, Sales Price and make sure that Product Type is Storable Product, go to Inventory tab Under Traceability section check that your Tracking is By Lots or Unique Serial Number, here I have selected By Lots now click on the Save button, and also Update the Cost of a Product and click on the Apply button.
Create a New Product Odoo
Create a New Product Odoo
Create a New Product Odoo
Create a New Product Odoo
Here you can see that our product has 0 on hand quantity
Update Quantity In Odoo
In order to fill this on hand quantity we will make a RFQ ( Request For Quotation ), now go to your Purchase application and click on the Create button
Request For Quotation In Odoo
Add your vendor and product, which we have created recently, Here I have ordered 10 quantities of a Work Table with Unit Price of $ 30.00, now click on the Save button and then Click on Confirm Order.
Request For Quotation In Odoo
Now click on Receive Products
Request For Quotation In Odoo
And then click on the icon as shown in
Request For Quotation In Odoo
Here I have added 1-WT as a Lot/Serial Number and 10.000 as Done quantity and click on the Confirm button and Validate the record.
Request For Quotation In Odoo
Request For Quotation In Odoo
Now you may go back to your Purchase record and click on Action →  Duplicate
Request For Quotation In Odoo
Here I have added 15 quantities of Work Table with Unit Price of $ 30.00, now click on the Save button and then Click on Confirm Order
Request For Quotation In Odoo
Now click on Receive Products
Request For Quotation In Odoo
And then click on the icon as shown in
Request For Quotation In Odoo
Here I have added 2-WT as a Lot/Serial Number and 15.000 as Done quantity and click on the Confirm button and Validate the record.
Request For Quotation In Odoo
Request For Quotation In Odoo
Now Go to Inventory →  Configuration →  click on Locations
Inventory Location In Odoo
Go to WH/Stock record and click on Current Stock smart button, Here you can see that our stock is added for the Work Table with two different lots one is 1-WT and the other one is 2-WT with quantities of 10 Units and 15 Units respectively.
Inventory Location In Odoo
Inventory Location In Odoo
Inventory Location In Odoo
Now, If you go Inside these records you will see Incoming date with their Lot/Serial Number and Quantity On Hand, Here you will see that our 1-WT Lot Number Incoming date was 03:44 p.m on 18/05/2020 with quantity of 10.00 Units, which was stocked first, while 2-WT Lot Number record was 04:02 p.m on 18/05/2020 with quantity of 15.00 Units, which was stocked last.
Inventory Location In Odoo
Inventory Location In Odoo
Now, Create a Sales Quotation, with a product of Work Table with 5 quantities, Save your Sales Quotation and click on the Confirm button
Quotation In Odoo
Quotation In Odoo
Now your delivery order will get created, go to your delivery order and click on button as shown in the picture
Delivery Order In Odoo
Delivery Order In Odoo
Here you can see that according to our configured Removal Strategy of FIFO, which was first stocked according to our Incoming date with a Lot Number of 1-WT
Delivery Order In Odoo


So, Our FIFO strategy is working correctly.

Let’s discuss about LIFO Method, 


Now Go To Inventory →  Configuration →  click on Settings Here you have to make sure that you have selected two options.


Option-1 : Go Under Traceability section click on Lot & Serial Number


Option-2 :  Go Under Warehouse section and click on Multi-Step Routes


After selecting these features, click on the save button.


Now click on Set Put-away Strategies on     Locations, If you are on a different page Go to Inventory →  Configuration →  click on Locations


After getting on the Locations page, click on WH/Stock record, Inside this record you will see Removal Strategy under Logistics section click on Last In First Out (LIFO) method and click on the Save button

Delivery Order In Odoo



After completing this Go To Inventory →  Master Data →  Products, here I have created a new product otherwise you can select an existing product too; so click on create button, add a Product Name, Sales Price and make sure that Product Type is Storable Product, go to Inventory tab Under Traceability section check that your Tracking is By Lots or Unique Serial Number, here I have selected By Lots now click on the Save button, and also Update the Cost of a Product and click on the Apply button.

Here you can see that our product has 0 on hand quantity. In order to fill this on hand quantity we will make a RFQ ( Request For Quotation ), now go to your Purchase application and click on the Create button, add your vendor and product, which we have created recently, here I have ordered 10 quantities of a Work Table with Unit Price of $ 30.00, now click on the Save button and then Click on Confirm Order.

Now click on Receive Products, and then click on the icon as shown in, here I have added 1-WT as a Lot/Serial Number and 10.000 as Done quantity and click on the Confirm button and Validate the record.

Now you may go back to your Purchase record and click on Action →  Duplicate,Here I have added 15 quantities of Work Table with Unit Price of $ 30.00, now click on the Save button and then Click on Confirm Order.Now click on Receive Products, and then click on the icon as shown in, here I have added 2-WT as a Lot/Serial Number and 15.000 as Done quantity and click on the Confirm button and Validate the record.

Now Go to Inventory →  Configuration →  click on Locations, go to WH/Stock record and click on Current Stock smart button, Here you can see that our stock is added for Work Table with two different lots one is 1-WT and other one is 2-WT with quantities of 10 Units and 15 Units respectively.

Now ,If you go Inside these records you will see Incoming date with their Lot/Serial Number and Quantity On Hand, Here you will see that our 1-WT Lot Number Incoming date was 03:44 p.m on 18/05/2020 with quantity of 10.00 Units, which was stocked first, while 2-WT Lot Number record was 04:02 p.m on 18/05/2020 with quantity of 15.00 Units, which was stocked last.
Delivery Order In Odoo



Delivery Order In Odoo



Now, create a Sales Quotation, with a product of Work Table with 5 quantities, Save your Sales Quotation and click on the Confirm button.


Now your delivery order will get created, go to your delivery order and click on button as shown in the picture

Removal Strategy of LIFO



Here you can see that according to our configured Removal Strategy of LIFO, which was last stocked according to our Incoming date with a Lot Number of 2-WT
Removal Strategy of LIFO



So, our LIFO strategy is working correctly.


Removal Strategy of LIFO


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