Period-end average cost method.

Question

Odoo has the AVCO (Average Cost) method, but it recalculates the cost of goods sold as soon as the goods are received into inventory. This means that the cost of goods sold is recorded at that time. In case I want to make adjustments so that at the end of the month, all purchase orders are summarized, the end-of-month cost of goods is calculated, and then this cost is recorded for the sales invoices during that month, are there any notes or risks? Is there any module that has been built for this

Rakesh Patel (patr) · Answer

Hello ,

Your requirement to summarize all purchase orders and adjust the cost of goods sold (COGS) at the end of the month aligns more closely with the *Periodic Inventory Valuation* method, as opposed to Odoo's default real-time (Perpetual Inventory) valuation. Odoo's Average Cost (AVCO) method calculates costs dynamically with each inventory receipt, so adjusting it retroactively requires careful handling.

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