We have seen in the previous chapter how the Warehouse is integrated with sales and purchase applications. When a sales order is confirmed, the delivery order is generated in Warehouse automatically with the estimated delivery date. Warehouse also keeps a track record and schedule for all the incoming shipments as incoming shipments are created when the purchase order gets confirmed.
Warehouse should have integration with the accounting application too. To have the accurate stock valuation in the balance sheet as and when a product is sold, it should be reflected in the profit and loss under the Cost of Goods Sold. Let's assume that if Warehouse is not integrated with the accounting application, you cannot have a real-time inventory valuation and cost of goods in accounting. Big Warehouses need real-time accounting integration, along with integration with sales and purchase as they have a lot of incoming and outgoing shipments to process every day.
Odoo Warehouse Management is able to manage Warehouses for a small shop, and the same Warehouse application can be scaled up to manage the big Warehouses. It has all the capabilities to manage the big Warehouses efficiently with multiple locations, different strategies such as put away strategy and removal strategies, reordering level at the Warehouse, or individual location levels. Let's go through some of the advanced features of Warehouse such as computing the cost of a product, when it will be sold or consumed in manufacturing and adding the logistic costs to the cost of the product to get the correct inventory valuation, or the cost of goods sold. Compute the inventory valuation and cost of goods sold, set up the quality check process at the reception, and return the product if it has not passed the quality check. Check the quality when transferring products to other locations such as production plants, and scrap the product if it is not used or if it has reached the end of its life.