This article is an excerpt from "ERP is really free and does not cost money - Odoo Application Guide" written by Odoo Asia-Pacific Gold Medal Service Organization [Open Source Intelligent Manufacturing]. If you want to obtain complete knowledge content, please go to the official website of Open Source Intelligent Manufacturing for free. Thank you for the one-click triple link: like, repost, and favorite. Your support is our greatest motivation!
Whether it is SAP, Oracle or Odoo, as imported products from overseas, their biggest common problem is how to adapt and adapt to China's localization, especially in terms of finance. When SAP brought ERP into China, it was not acclimatized and did not provide a "full-month weighted average" cost pricing method. The demand with Chinese characteristics was difficult for foreigners to understand. The domestic financial department was very repulsed when they heard that they wanted to apply foreign ERP.
When calculating the inventory value and the cost of sending out the inventory, you need to know the inventory unit price. Inventory accounting methods include: standard price method (planning method), moving average method, monthly weighted average method, first-in-first-out method, last-in-first-out method, and individual valuation method. In the free and open source ERP Odoo, these accounting methods can be realized through configuration. China has a moving weighted average method that is not available in foreign countries, which has always been a difficult point in the realization of financial business integration in the ERP system. However, since Odoo10.0, we have been developing a Chinese financial accounting system to preserve financial business integration. function. Now the latest version of Odoo is already using this financial system, which is very popular with customers. This is one of our black technologies.
What is the monthly weighted average method?
The monthly weighted average method refers to taking the total purchase quantity plus the inventory quantity at the beginning of the month as the weight, and subtracting the total purchase cost of this month plus the inventory cost at the beginning of the month to calculate the weighted average unit cost of the inventory. A measure of the cost of monthly shipped inventory and the cost of ending inventory. This accounting method does not need to consider how many times the company purchases goods in a month, but only weights and averages the inventory cost of the month at the end of the month, so that the inventory unit cost within a month is the same.
Odoo monthly weighted average production cost accounting
At the beginning of each month, create a month-end weighted average production cost calculation form in the Odoo system, load all finished products of the current month on the form, and the system will automatically generate cost calculation forms for each layer of products, semi-finished products or raw materials according to the BoM level of the product. Then, starting from the bottom layer of BoM (raw material), the cost price is calculated layer by layer.
Production cost calculation form:
This form automatically loads the production quantity of all finished/semi-finished products based on the production storage data of the current month, and automatically calculates the manufacturing cost allocation of each product according to the man-hour and machine-hour allocation ratio set on the BoM.
Hierarchical costing form:
According to the hierarchical structure of the BoM table, first calculate the cost of the first layer (raw materials), and then calculate the cost of the second layer (semi-finished products), and calculate layer by layer. The cost of each layer is composed of raw material cost, plus manufacturing cost allocated by man-hours and machine hours.
Material cost analysis of finished products:
The cost of a finished product is composed of its next-level semi-finished product cost (including raw material cost and manufacturing cost), plus the manufacturing cost of finished product assembly. Material cost analysis disassembles the cost of finished products into raw material cost (including the raw materials that make up semi-finished products at all levels), man-hour cost (including man-hour cost of semi-finished products at all levels, not just the man-hour cost of the last assembly), and machine time cost.
All inbound/outbound product details:
Including date, quantity, cost unit price, total cost price
Odoo is an open source and free enterprise management software from Europe, the same birthplace of SAP. Now it has more than 7 million users around the world, and it is a free and open source ERP with the highest market share for small and medium-sized enterprises in Europe. It covers common ERP functional components, such as sales, procurement, inventory, finance, production and other modules, as well as Internet components such as e-commerce, CRM, and enterprise website building, as well as mobile application functions such as mobile APP.
After nearly 20 years of development, Odoo has formed a very mature Odoo ecosystem. It has the world's largest enterprise application plug-in market, with more than 70,000 plug-ins for download and use, covering the functional needs of almost all walks of life. Odoo is open source and free, with many plug-ins, flexible customization, and rapid iteration. It is welcomed by more and more companies and is the world's number one open source ERP software. Enterprises apply the Odoo system, just like building blocks, select plug-ins from the plug-in market, install and test, and configure the functional process according to requirements. Configuring ERP software in the way of "building blocks" greatly reduces the cost and risk of implementing ERP software for enterprises. If you still have questions about this or you are selecting a model for your enterprise ERP, welcome to the official website of Open Source Intelligent Manufacturing for more information.