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How To Create Reordering Rules in Odoo

How To Create Reordering Rules in Odoo 14

Odoo or Open ERP is a collection of multiple business applications where you can manage everything from Sales to Invoicing, Purchase to Manufacturing, HR to Projects at a single place with each application providing detailed features covering almost every business need. One of the most important highlights of Odoo software is its E-commerce and CRM. Every module is well maintained with updates that provides exciting new features.

With time, the structure of a company expands, and the needs are also changed. So, it’s important for an ERP system to keep up with the needs of the company.

INVENTORY MANAGEMENT IN ODOO

Odoo’s inventory management structure is very well organized and follows an integrated approach to business planning and operations, in which users can manage all their accounting, logistics, operations, and inventory at a single place.

Now one of the main concerns for any company managing its inventory is the fear of running out of stock and manually refilling the stock time to time which can be painful. But no need to worry, because Odoo provides one of the best solutions to this problem with the help of its reordering rules feature.

So now the question arises what are Reordering Rules in Odoo?

In simple words, Odoo reordering rules refer to a set of rules which are defined by users to help maintain their warehouse with the refill of stocked products at a particular interval of time.

BENEFITS OF REORDERING RULES

The basic purpose of Reordering rules is to define a set of rules to maintain a minimum and maximum stock level for products. Now the minimum and maximum stock here means a certain minimum and maximum level of raw materials or products that must be present in the stock all the time.

Thus, setting up of Automation of Inventory Management process in your system. And with automation there is always an increase in the efficiency and reduction in the errors, thus, making your ERP more and more profitable.

Now, let us see how we can configure Reordering Rules in Odoo.

REORDERING RULES CONFIGURATION IN ODOO

Here we are going to create a Reordering Rule for a product by specifying a minimum quantity and maximum quantity for the product.

Product Configuration

The first step is to create a stockable product in Odoo (Reordering rules work for stockable products only).

Navigate to Product form > General Information Tab.

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Vendor Configuration

In the product form, under the Purchase Tab, add Vendor, unit of measure and price for the product. We can add Multiple Vendors here and at the time of maintaining minimum stock, Odoo will generate an RFQ for the vendor for the product. If multiple vendors are added to the product, priority goes to the vendor present at the top index in the line.

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Reordering Rule for Product

After setting up Vendors, click on the REORDERING RULES smart button present at the top in the Product Form.

Here we’ll create the reordering rule for this product by filling up the following fields like Stock location, Preferred route, Trigger, Minimum Quantity, Maximum Quantity, Multiple Quantity etc.

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The basic components to keep in mind here are:

• Minimum Quantity- minimum quantity at which the system will trigger a new order for replenishment.

• Maximum Quantity – The maximum quantity that has to be stocked in the inventory.

• The Quantity Multiple – lowest number of items that can be ordered at a time.

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Here we can see in the product form, the minimum and maximum quantity set up in the reordering rule.

Sale Orders

Now let us try to create a sale order for this product on which we have setup the Reordering rule.

Here we can see in the order line a red colour mark in the Delivered QTY Column which shows that products are not available in stock.

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Delivery Order

Now, click on delivery order and validate the delivery order.

Here also we can see in the Reserved QTY column that products are not available in stock.

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Replenishment Configuration

Navigate to Inventory > Operations > Replenishment

The replenishment route will trigger a procurement (purchase order or manufacturing order) with the necessary quantity to fulfil a product request (coming from a sale order or a manufacturing order).

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Schedulers

Now let us see how we can setup the schedulers for the Reordering rules process.

Navigate to Inventory > Operations > Run scheduler

Here we can run the schedulers manually. It uses all the relevant parameters defined for products, suppliers, and the company to determine the priorities between the different production orders, deliveries, and supplier purchases.

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Purchase

Navigate to Purchase menu and Check Request for Quotation, we can see an RFQ for the product created here.

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Confirm Purchase Order

Now Confirm the RFQ of the Purchase order and Validate the receipt.

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On Hand Quantity

After validating the Purchase Order, we can see the updated-On Hand Qty of the Product.

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So in simple words, we setup a Reordering rule for the product.

Based on these simple rules, RFQ has been generated automatically for maintaining the stock (minimum and maximum).

By following these simple steps, we can easily setup and configure Reordering rules and inventory automation in Odoo.

You can also Watch the Video Here:

 
 

If you want any Odoo Customization or support related to Inventory management or any other Odoo Module, feel free to Contact us.