There are 2 types of accounting integration
i. Real-time Accounting Valuation
ii. Analytic Accounts
Real-time Accounting Valuation
Here, each stock movement generates a corresponding accounting entry in an accounting journal. You need to configure your Raw Material location and/or Production location and Finished Products Location in Routings.
Next, set up a general account for each location that should be valued in your accounts. If a product goes to one location or another and the accounts are different in the two locations, Odoo automatically generates the corresponding accounting entries in the accounts, in the stock journal.
Remember, in the Product form, go to the Accounting tab and select the Real Time(automated) option for Inventory Valuation. To define your accounts, you have two options. Set them on the product category, or on the product.
From the Accounting Stock Properties section, for the Product Category, set the Stock Input Account, the Stock Output Account and the Stock Valuation Account
From the Accounting tab, for the Product, set the Stock Input Account and the Stock Output Account.
You can also overwrite the accounts from the Product or the Product Category by defining Stock Input Account and Stock Output Account for a Location.
Here, is a sample journal entry for stock move of a product from Raw Material location -> Semi Finished Location -> Virtual Location
This helps in valuating different location during a manufacturing operation.
In manufacturing operation, there are 3 types of cost involved- Material, People and Machine. Whenever manufacturing order is created these analytic account gets created automatically. The feature listed here is not available in default installation.
i. Material Cost– This is achieved through Bill of Materials. An analytic entry is made whenever stock move happens from Stock to Virtual location.
ii. People Cost– This is achieved by linking manufacturing with HR time-sheets. This feature is not there in the default installation. Ideally, an analytic account should be created against each manufacturing order. And employees keep on adding line to time sheets with details of the time used on that manufacturing order.
Alternatively, this can also be achieved through Work Center of type Human. We can set an hourly rate for a particular operation. At the end, we put total number of hours consumed and accordingly system calculates the actual cost.
iii. Machine Cost–
For this we have to configure Work Centers of type Material. If it is discrete manufacturing we configure Hour Account and if it is continuous manufacturing we configure Cycle Account. Also, we specify Cost per hour / Cost per cycle for each operation.
Finally, when the manufacturing order is completed system makes analytic entries for each work center operation for which analytic account is configured.
Chart of Analytic Accounts give us complete expense of Material, Human and Machine