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I’ve configured my product category inventory valuation as Automated and set up the following accounts in the product category:

- Stock Valuation Account

- Input Account

- Output Account

- Expense Account (set as my Cost of Goods Sold (COGS) account based on my Chart of Accounts).

Here’s the issue I’m facing:

When I change the cost in the product master, the amount is reflecting in the Profit and Loss Report under the COGS account, but no sales have been made

this is entry happening when change cost

  • COGS Account (Credit)
  • Inventory Account (Debit)

Why does the system post this journal entry when the cost changes?


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Hi @Ray - this is a good way of changing the cost in v18 for products with FIFO and Average Cost. But it can't be used for products with Standard Cost.

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When you increase the cost in the Product master, your inventory is now worth more so the Journal Entry is to reflect this change.

As we explain in the documentation at https://www.odoo.com/documentation/18.0/applications/inventory_and_mrp/inventory/product_management/inventory_valuation/inventory_valuation_config.html#costing-method - "If the value in the Cost field on a product form is changed manually, Odoo generates a corresponding record in the Inventory Valuation report."

The account used is the Expense Account on the Product (or Product Category) - which is normally a Cost of Goods account.


A better way to manage changes in product cost is to change it for specific quants in Inventory via the Valuation Report in the Inventory App.


Select the Quant(s) you want to update and use Adjust Valuation from the Action Menu:


You will then have the ability to choose the counterpart account for the write-down / mark-up:

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