How Lot values are updated after Completing a Vendor Return in Odoo Inventory
Managing inventory accurately is important for any business, and Odoo makes this easier with features that automatically adjust lot values after a Vendor Return. When products are sent back to a vendor, the system adjusts the product quantity and the corresponding lot values. This ensures transparent stock tracking and keeps your system aligned with the actual physical inventory at all times.
Accessing the Lot Details in Odoo Inventory
Whenever a products are returned to the vendor, the system refreshes the information stored in the related lot. This includes the latest on-hand quantity, the total value of the items in that lot and the average cost. These updates ensure the lot always shows correct and current inventory data.
Before this process works correctly, two important prerequisites must be met. The product must be tracked either by Lots or Unique Serial Numbers and the Product Category must be configured with the Average Costing Method. These settings allow Odoo to compute and update the average cost within each lot accurately.
For example, consider a lot that currently has an on-hand quantity of 25 PCS (after purchase and sales) with an Final Gross Cost of 160, and the total value of 4000 , so the average cost is 160. Odoo uses this stored information during a vendor return to ensure that your inventory valuation remains accurate.
Creating a new Vendor Return in Odoo Inventory
To start a new Vendor Return process, navigate to the Inventory module, click Operations and select Vendor Return. Click the +New button to create a new document. Choose the vendor from the Vendor drop down, then select the reason for the return from the Reasons for Return field. After you save the record, Odoo will automatically generate a Document Number for the return.
Next, click Add a line to include the product you want to return. You can choose the product and select the related GR Bill from the Bill drop down and enter the return quantity as 4 in the Demand field. Once done, click Mark as To Do. Select the appropriate lot in the Available Lot field so the Cost field displays the Final Gross Cost of the selected lot. Make sure the Product is available using the Product Availability.
Validating the Vendor Return Document
When all entries are correct, you can click Validate. As soon as the vendor return document is validated, the System immediately updates the lot values. The on-hand quantity changes based on the new count and the total value and average cost are recalculated. These changes help maintain accurate inventory valuation.
Viewing the updated Lot Details in Odoo Inventory
To see the updated results, you can return to the same lot in the Lot/Serial Number Master. For example, if a 4 PCS from a lot is returned to vendor so the new on-hand quantity becomes 21 PCS and cost taken from the vendor return document is 160 . This cost is used for calculating the Total Value, which is determined using the formula:
Total Value = Existing Total value - (Cost × On-Hand Quantity)
Total Value = 4000 – (160 * 4) = 3360The Average Cost is then displayed using the formula:
Average Cost = Total Value ÷ On-Hand Quantity
Average Cost = 3360 ÷ 21 = 160So Total Value is displayed as 3360.00 and Average Cost is displayed as 160. This ensures that both stock and financial records remain accurate after the returned items are removed from the system. Odoo handles these updates automatically, giving users reliable information about stock levels and lot-specific valuation at all times.
