How to perform Lot/Serial Number Costing calculation for Product in Odoo Inventory

Accurate cost and price management are essential for maintaining profitability in any product-based business. Odoo supports this through its Lot/Serial Master, which tracks cost, margin, and pricing details for each product lot. This ensures complete visibility and control over product-level financials.

The Lot/Serial Master enables organizations to monitor cost structures, validate margins, and maintain consistent pricing standards. It supports accurate GR Bill preparation by comparing MRP, basic cost, and margins before finalization. This empowers businesses to perform effective price-variance analysis across multiple lots.

By applying the outlined formulas and principles, companies can achieve precise cost control and stronger profitability management. The Lot Master ensures transparency in pricing decisions and aligns product costs with profitability targets. It provides the clarity needed to support data-driven, margin-focused pricing strategies.

Accessing the Lot/Serial Master in Odoo

To view and manage lot or serial number details for a product then Open the Inventory module and navigate to the Lot/Serial Number and select the appropriate lot. The Price Info section displays cost, tax, and margin details for the selected lot.

Cost Price

The Cost Price represents the cost or unit value of a single product unit.

Formula:

Cost Price = Basic Cost − Discount Percentage (if any)

Example:

For a product such as A4 Paper with a Basic Cost of ₹236.61 and a discount of 0%,

Cost Price= 236.61 − 0 = ₹236.61

If the discount is 0%, the total discount amount will also be 0.

FGC (Final Gross Cost)

The FGC Cost represents the final cost per unit, including any additional charges.

Formula:

FGC Cost = Cost Price ± Additional Cost

If no additional cost is added, the FGC Cost equals the Cost Price.

Example:

FGC Cost = 236.61 + 0 = ₹236.61

Tax Amount

The Tax Amount is derived by applying the applicable tax rate to the Final Gross Cost.

Formula:

Tax Amount = Final Gross Cost × Tax %  

Example:

Final Gross Cost = ₹236.61
Tax Rate = 12%
Tax Amount = 236.61 × 12% = ₹28.40  

Net Cost

The Net Cost combines the final gross cost and tax amount.

Formula:

Net Cost = Final Gross Cost + Tax Amount 

Example:

Net Cost = 236.61 + 28.40 = ₹265.01

Markdown for Purchase Cost

Markdown represents the reduction from the product’s MRP to its Final Gross Cost.

Formula:

Markdown (%) = ((MRP (Taxable) – Final Gross Cost) / MRP (Taxable)) × 100

Example:

MRP (Taxable) = ₹339.28
Final Gross Cost = ₹236.61
Markdown = ((339.28 – 236.61) / 339.28) × 100 = 30.26%

Markup for Purchase Cost

Markup indicates the percentage by which the MRP exceeds the Final Gross Cost.

Formula:

Markup (%) = ((MRP (Taxable) – Final Gross Cost) / Final Gross Cost) × 100

Example:

MRP (Taxable) = ₹339.28
Final Gross Cost = ₹236.61
Markup = ((339.28 – 236.61) / 236.61) × 100 = 43.39%

Sales Price Based on MRP

When a pricelist applies a discount to MRP, the Sales Price can be calculated as follows:

Formula:

Sales Price = MRP − Discount %

Example:

MRP = ₹380
Discount = 10%
Sales Price = 380 − 10% = ₹342

Margin Amount

The Margin Amount indicates the profit per unit after deducting the Final Gross Cost from the Selling Price.

Formula:

Margin Amount = Sales Price (Taxable) − Final Gross Cost

Example:

Sales Price (Taxable) = ₹305.36
Final Gross Cost = ₹236.61
Margin Amount = 305.36 − 236.61 = ₹68.75

Markdown % for Selling Price

Markdown % for Selling Price represents the reduction in the selling price relative to the Final Gross Cost.

Formula:

Markdown (%) = ((Selling Price (Taxable) − FGC) / Selling Price (Taxable)) × 100

Example:

Selling Price (Taxable) = ₹305.36
FGC = ₹236.61
Markdown = ((305.36 − 236.61) / 305.36) × 100 = 22.51%

Markup % for Selling Price

Markup % for Selling Price reflects how much higher the selling price is compared to the Final Gross Cost.

Formula:

Markup (%) = ((Selling Price (Taxable) − FGC) / FGC) × 100

Example:

Selling Price (Taxable) = ₹305.36
FGC = ₹236.61    Markup = ((305.36 − 236.61) / 236.61) × 100 = 29.06%