How to Implement FIFO in Odoo OpenERP
Odoo OpenERP Inventory management module is especially designed for managing industrial products. Today let us understand how to manage Inventories in FMCG and Pharma Industry where we have an Expiry Date on each and every product.
In Odoo we can easily track the Inventories based on its expiry date using Odoo OpenERP Out-of-the-box module as FIFO.
This module indicates that whatever comes in first goes out first.
Let us see the Step by Step process of FIFO Module:
1. Firstly we need to make sure that whatever products we are receiving at the same time with same expiry date needs to be kept at one box or one place called as LOT. For this whenever we receive an Incoming Shipment the system assigns a particular Lot Name for each product received with their quantity. Doing this we have list of all the lots and their order in which they have arrived.
Fig 1 : shows how a lot is assigned to a particular Incoming Shipment
2. Now the major step, though we have lots in sequence but we need to make sure that while creating Sale Order we are selecting the lot which has arrived first. If we miss this than we will not be able to achieve the complete FIFO rules and products may go out of Expiry.
For this reason OpenERP has a function called as Default Lot Selection where the lots while creating Sale Order will be automatically selected as per FIFO. Truly speaking this is a cumbersome task for user to select the right lot but now the system will be doing this for us.
Fig 2 : shows that as we add a product in sale order and enter the quantity the system by default selects a Lot as per the FIFO.
The best part of this module is that we can also override the FIFO so if we want to select any other lot here we can simply delete this and select another one.