Effective inventory management is crucial for any thriving business, and maintaining accuracy largely hinges on the management of unsellable or damaged items. Odoo 19 introduces Scrap Locations, which provide an efficient way to manage products that cannot be sold or used. This feature allows companies to monitor and account for these items without disrupting their main inventory processes.
Scrap locations are specific areas where items that are no longer needed can be sent for recycling, reprocessing, or disposal in the future. In Odoo 19, these virtual locations do not correspond to actual physical spaces within a warehouse. Instead, they are particular entries in the system's database that keep track of items not counted in the physical inventory. This helps maintain organized stock levels, ensuring that operational data is accurate and only includes items that are available for use. By effectively managing scrap locations, businesses can minimize errors, enhance the accuracy of their reports, and streamline their inventory processes.
This guide will examine the role of scrap locations in Odoo 19, their relevance to warehouse operations, and the process of setting them up to optimize your inventory management practices.
Creating a new Scrap Location
The storage location must first be enabled in the inventory module's settings.
Begin by establishing a new location named the scrap location by accessing Configuration > Locations. Hit the New button, input the location name, select Virtual Location as the Parent location, and designate Inventory Loss as the Location Type.
You can now apply this location in Odoo 19 Inventory for scrapping a product.
Initially, we should acquire an out-of-stock product to carefully observe its movement, which will help us showcase this technique. We can obtain ten units of the item for this purpose.
Stock scraps
Consider a situation in which we receive some of the items we bought and notice that they are defective. In this case, our main task is to determine which products are suitable for disposal.
Open the Inventory app, navigate to Operations, select Scrap, and then click on New to begin the scrapping of some recently purchased items. This action will bring up a new Scrap Order form.
Pick the operation in the Source Document section if the scrap is associated with a specific activity. Additionally, mark the "Replenish Quantities" checkbox if the product needs to be restocked. For this instance, we are placing a scrap order for two items. Please indicate the Scrap Reason.
Once you press the Validate button, a new smart button named "Product Moves" will be displayed.
You can now check that the product is being handled properly. In this scenario, the product is relocated from the storage area to the scrap section.
Another item, Book, is monitored using its Serial Number. This product is currently in stock.
After that, head back to the Scrap Orders and click on the New button. You can add the product here, but keep in mind that only one unit can be sent to scrap at a time. Make sure to select the serial number in the Lot/Serial field. To check the movement of the product, look at the smart tab.
The third item on the list is a sandwich, tracked by lot numbers. The inventory count has been revised to 20 pieces.
Start by creating a new scrap order by clicking on the New button. Choose the product which is tracked using the lot number. This time, users are allowed to specify the quantity. After that, click the Validate button to complete the process.
To check the product movement, click on the smart tab, Product Moves smart tab.
Verify Stock Levels and Update Inventory
Odoo 19 immediately updates the inventory to reflect the trashed quantity when a scrap operation is verified. Accurate stock levels are guaranteed by this real-time modification, which also helps to avoid inconsistencies in inventory records.
You can now see how much of this product is available.
10 units of the product Burger are listed as On Hand Quantity in the inventory, indicating that two units have been withdrawn for scrapping.
Scrap damaged items as soon as they are received.
Odoo 19 makes it simple to handle the situation where part of the purchased goods are discovered to be broken after delivery. The screenshot below depicts a Receipt Transfer in which you receive three identical pieces; however, following closer examination, it is discovered that two of them are damaged.
As shown below, you can verify that the products have been received.
You may now locate the option to make a scrap by hitting the gear button, as seen below.
You can now designate the product and the amount to be discarded.
Check the transfer again. There is a new smart tab. Click on the smart tab Scraps.
The Scrap Order that has been generated is presented below, detailing the source and destination locations as outlined in the accompanying list.
In conclusion, efficient scrap management in Odoo 19 ensures accurate inventory control and financial reporting by streamlining the tracking and management of damaged or obsolete products. Odoo 19 assists companies in keeping accurate records when products are transferred to scrap sites by utilising capabilities like automatic accounting entries and stock movement log generation.
When these capabilities are configured correctly, they guarantee a smooth interaction with your accounting system, reducing errors and offering real-time stock status visibility. Businesses may increase operational efficiency and make better decisions about inventory and resource allocation using Odoo's powerful scrap management solutions.