[IMP] Inventory: Rewrite aging report as stock valuation report

Author: benderliz

Diff for: content/applications/inventory_and_mrp/inventory/warehouses_storage/reporting/aging.rst

@@ -1,98 +1,198 @@
-======================
-Inventory aging report
-======================
+=========================
+Stock valuation dashboard
+=========================
 
 .. |SVLs| replace:: :abbr:`SVLs (stock valuation layers)`
 
-The inventory aging report evaluates all items in stock, providing insights into potentially sunken
-purchase costs and delays in profitability.
-
-Create customized pivot tables to analyze product, operation types, month, or company breakdowns.
-This helps identify products in stock that are at risk of passing their expiration or viability
-dates, or instances of rot/decay for fast-expiring items.
-
-.. note::
+When a company has physical assets, such as inventory, they often want to know approximately how
+much has been spent on these goods, or how much they are worth at the moment. These numbers are
+often reported for accounting purposes. For instance, an insurance company may want to know the
+value of goods stored in a warehouse, in the event of a flood or fire.
+
+This process of assigning a monetary value to account for inventory is known as *stock valuation*.
+:doc:`Stock valuation <../../product_management/inventory_valuation/using_inventory_valuation>`
+typically utilizes one of two accounting systems:
+
+- **Perpetual**: The inventory is constantly (perpetually) being updated, and the value is
+  constantly changing.
+- **Periodic**: The inventory value is checked on an occasional (periodic) basis, and the value is
+  set at this occasional time.
+
+Using :ref:`tracked inventory <inventory/product_management/tracking-inventory>` in Odoo
+necessitates a *perpetual* inventory accounting system because of the need to know when and where
+inventory exists, and how much of it is available or forecasted. There are a few common :ref:`stock
+valuation methods <inventory/warehouses_storage/costing_methods>` used in Odoo: standard price,
+average cost (AVCO), and first in, first out (FIFO) accounting. It is important to know that the
+valuation method chosen for a product impacts the calculation of several fields in the stock
+valuation reports.
+
+Where to access the dashboard
+-----------------------------
+
+Odoo's Stock Valuation dashboard displays the financial value of all tracked inventory, according
+to each product's stock valuation method. This report can provide insights into sunken purchase
+costs or delays in profitability. To access the dashboard, go to :menuselection:`Inventory app -->
+Reporting --> Valuation`.
+
+.. important::
    The *Reporting* menu in *Inventory* is only accessible to users with :doc:`admin access
    <../../../../general/users/access_rights>`.
 
-To access the inventory aging report, go to :menuselection:`Inventory app --> Reporting -->
-Inventory Aging`.
+This dashboard has three different views, or inventory reports — :ref:`list view (i.e. the default,
+stock valuation report) <inventory/warehouses_storage/valuation-report>`, :ref:`pivot view (i.e. the
+stock aging report) <inventory/warehouses_storage/aging-report>`, and graph view. Each view can be
+customized with different fields to break down inventory valuation by product, operation type, date,
+or company.
 
-.. _inventory/warehouses_storage/aging-report:
+All three views can be filtered by various fields. To apply filters, click into the search bar at
+the top of the report, or click the drop-down arrow next to it. For example, selecting the filter
+:guilabel:`Has Remaining Qty` will show only pr   ducts that are currently in stock.
 
-Navigate the inventory aging report
-===================================
 
-By default, the :guilabel:`Inventory Aging` report displays a pivot table, with the month in
-columns, and product category in rows. The default filters, :guilabel:`Incoming` and :guilabel:`Has
-Remaining Qty`, show only products from receipts, and are currently in stock.
+.. _inventory/warehouses_storage/valuation-report:
 
-:guilabel:`Remaining Qty` displays the number of on-hand items, and :guilabel:`Remaining Value`
-displays the total cost of purchasing these items.
+List view: stock valuation
+==========================
 
-Clicking the :icon:`fa-plus-square` :guilabel:`(plus)` icon in each column or row reveals options to
-expand the pivot table and show a detailed breakdown of the :guilabel:`Remaining Qty` and
-:guilabel:`Remaining Value` by :guilabel:`Product`, :guilabel:`Product Category`, :guilabel:`Date`,
-or :guilabel:`Company`. Clicking the :icon:`fa-minus-square-o` :guilabel:`(minus)` icon collapses it
-back to its previous state.
+By default, the :guilabel:`Stock Valuation` dashboard displays in *list view*, represented by the
+:icon:`oi-view-list` :guilabel:`(list)` icon. This view is essentially a *Stock Valuation Report*,
+which shows a detailed record of stock movements and their valuations.
 
-.. figure:: aging/inventory-aging.png
-   :align: center
-   :alt: Inventory aging report.
+Configure
+---------
 
-   Inventory aging report, showing each **Product** in rows and each reception **Date** in columns,
-   to better monitor products with fast expiration dates. Each row shows the the total on-hand
-   quantity and inventory valuation of items purchased on each day.
+The following columns are displayed by default:
 
-.. note::
-   Records in the :guilabel:`Inventory Aging` report are *stock valuation layers* (SVLs),
-   representing product moves that impact stock valuation.
+- :guilabel:`Date`: the date and time when the stock move was created. The valuation report is
+   sorted by this field, emphasizing the importance of time when valuing inventory.
+- :guilabel:`Reference`: the reference document associated with this stock move (e.g., a warehouse
+   receipt, a delivery order, or a manual inventory adjustment).
+- :guilabel:`Product`: the product that is being moved and valued.
+- :guilabel:`Quantity`: the number of units by which this product's stock has increased or
+   decreased in this particular stock move.
+- :guilabel:`Total Value`: the value of the product's stock in this particular stock move,
+   calculated by multiplying the :guilabel:`Quantity` and :guilabel:`Unit Value`.
 
-   Inventory adjustments do **not** create |SVLs|; only items purchased from vendors do.
-
-Generate reports
-================
+.. note::
+   If a :guilabel:`Reference` document includes several goods, there will be a *separate line item*
+   generated on the Stock Valuation Report for *each* good.
+
+There are additional fields that can be added to this view to provide more insight into the stock's
+valuation:
+
+- :guilabel:`Lot/Serial Number`: the uniquely identifying lot or serial number for this product.
+- :guilabel:`Company`: for businesses that operate with multiple companies, this field displays the
+   company by which this stock move took place.
+- :guilabel:`Remaining Quantity`: the number of units remaining for this valuation of the product,
+   after demand has been accounted for (even from other stock moves). This field can be especially
+   helpful for FIFO and AVCO accounting, as it conveys which units of stock came into a warehouse
+   first and the value of said stock.
+- :guilabel:`Unit Value`: the cost of one unit of the product (**not** the price to consumers).
+- :guilabel:`Description`: a description of the reason for this stock valuation (typically, a stock
+   move has occurred). By default, this field is set as the concatenation of the
+   :guilabel:`Reference` and :guilabel:`Product` fields. However, the field may also display other
+   important messages for this line item, such as a note stating that the line item is an adjustment
+   due to a change in the product's inventory valuation method.
+- :guilabel:`Remaining Value`: the value of this product's current stock levels for this particular
+   stock move, after demand has been accounted for. Along with :guilabel:`Remaining Quantity`, this
+   field can be especially helpful for FIFO and AVCO accounting, as they convey which stock came
+   into a warehouse first and the value of said stock.
+
+.. image:: aging/stock-valuation-report.png
+   :alt: Stock valuation report.
+
+Each line item in the :guilabel:`Stock Valuation` report represents a record in Odoo's system known
+as a *stock valuation layer (SVL)*. SVLs are generated when products move in a way that impacts
+their stock valuation. Specifically, the stock moves that generate SVLs are warehouse receipts,
+deliveries, dropshipping orders, and dropshipping returns. These stock moves must first be validated
+(by clicking the :guilabel:`Validate` button) for the SVL to be created.
+
+If a product's inventory valuation method changes on the product form, new line items are generated
+on the Stock Valuation Report to reflect the resulting SVLs. For example, if the valuation method
+changes from *standard price* to either *AVCO* or *FIFO* accounting, *revaluation entries* will be
+automatically posted to reflect the change in pricing for goods that remain in stock. One entry will
+be negative to "remove" the old pricing, and the second entry will be positive to record the new
+pricing. These entries are connected to journal entries in Odoo's **Accounting** app.
+
+Below is an example of what the Stock Valuation Report table shows when a few stock moves have
+occurred for a product using standard price accounting.
+
+.. image:: aging/before-val-method-change.png
+   :alt: Remaining value and quantity fields are calculated based on SVLs.
+
+Whereas the following image depicts what the Stock Valuation Report table might look like after a
+product has switched from standard price to FIFO accounting.
+
+.. image:: aging/after-val-method-change.png
+   :alt: Remaining value and quantity fields are calculated based on SVLs.
+
+.. example::
+   The :guilabel:`Remaining Value` and :guilabel:`Remaining Quantity` fields are derived from what
+   occurs at the SVL level in Odoo and, as such, are better understood with an example.
+
+   Say `Frankie's Consignment Shop` buys sweaters at the cost, or :guilabel:`Unit Value`, of `5.00`
+   dollars. For the first time, Frankie's purchases and receives a :guilabel:`Quantity` of `100.00`
+   sweaters in one stock move, then re-sells and delivers `-10.00` sweaters in a second stock move.
+
+   In the first stock move line item, the :guilabel:`Remaining Quantity` will change from `100.00`
+   to `90.00`, once the second stock move is recorded. This change reflects that, although 100
+   sweaters were originally purchased, only 90 of those sweaters remain in stock and should be
+   counted in the valuation. Similarly, the :guilabel:`Remaining Value` will drop from `$500.00` to
+   `$450.00`. The :guilabel:`Total Value` will remain at `$500.00`, regardless of subsequent
+   transactions.
+
+   On the other hand, the :guilabel:`Remaining Quantity` of the second stock move line item will be
+   recorded and remain at `0.00` because the quantity of `-10.00` was sold. In the system, because
+   the SVL was a sale, there is no stock left that needs to be valued from that transaction.
+
+   .. image:: aging/remaining-val-quant.png
+      :alt: Remaining value and quantity fields are calculated based on SVLs.
+
+Change the valuation date
+-------------------------
+
+The :guilabel:`Valuation At Date` button, located in the top-left corner of the Stock Valuation
+page, reveals a pop-up window. In this pop-up, select a date to act as a "cut-off" for the stock
+moves to be valued.
 
-After learning how to :ref:`navigate the inventory aging report
-<inventory/warehouses_storage/aging-report>`, it can be used to create and share different reports.
+.. note::
+   The value of the stock moves will not be point-in-time for any dates chosen in the past. In other
+   words, the stock move shown when selecting a past date will still display the current on-hand
+   value of its products.
 
-A few common reports that can be created using the :guilabel:`Inventory Aging` report are detailed
-below.
+.. _inventory/warehouses_storage/aging-report:
 
-Rotating stock report
----------------------
+Pivot view: stock aging
+=======================
 
-To create a report to identify items that have been in stock for a while, follow these steps:
+From the Stock Valuation dashboard, access pivot view by clicking the :icon:`oi-view-pivot`
+:guilabel:`(pivot table)` icon. This view is essentially a *Stock Aging Report*, and it shows the
+on-hand quantity and value of inventory by purchase date, which can help monitor products with
+expiration dates.
 
-#. Navigate to :menuselection:`Inventory app --> Reporting --> Inventory Aging`.
-#. On the :guilabel:`Inventory Aging` report, click the :icon:`fa-caret-down` :guilabel:`(caret
-   down)` icon in the :guilabel:`Search...` bar to see a drop-down list of :guilabel:`Filters`,
-   :guilabel:`Group By`, and :guilabel:`Favorite` options.
-#. Choose :guilabel:`Product` under the :guilabel:`Group By` section. Doing so expands the pivot
-   table to show a product in each row.
-#. Click the :icon:`fa-plus-square` :guilabel:`(plus)` icon to the left of the date column. Hover
-   over :guilabel:`Date` from the drop-down menu and choose :guilabel:`Year`, :guilabel:`Quarter`,
-   :guilabel:`Month`, :guilabel:`Week`, or :guilabel:`Day`. Doing so expands the columns to show the
-   :guilabel:`Remaining Qty` and :guilabel:`Remaining Value` by the selected time period.
+Configure
+---------
 
-   .. tip::
-      For products that have a longer shelf life, choose longer time periods such as
-      :guilabel:`Month` or :guilabel:`Quarter` when expanding columns by :guilabel:`Date`.
+By default, the pivot view shows the value of all *product categories* by *day and month*. Clicking
+the :icon:`oi-plus-square` :guilabel:`(plus)` icon in each column or row will reveal a drop-down
+list of options to further tabulate the table and create a more granular breakdown of the inventory
+valuation. The drop-down options include: :guilabel:`Product`, :guilabel:`Lot/Serial Number`,
+:guilabel:`Product Category`, :guilabel:`Date`, :guilabel:`Company`, or :guilabel:`Add Custom Group`
+Clicking the :icon:`oi-minus-square-o` :guilabel:`(minus)` icon collapses the field back to an empty
+state.
 
-   .. image:: aging/column-expand-icon.png
-      :align: center
-      :alt: Pivot table, highlighting the plus icon to expand columns.
+In the table, the :guilabel:`Remaining Qty` column displays the number of on-hand items, and
+:guilabel:`Remaining Value` displays the total cost of purchasing these items.
 
-#. The report now displays the on-hand stock of items, and their total purchasing cost, for each
-   time period.
+.. image:: aging/stock-aging-report.png
+   :alt: Stock aging report, showing product row items and day columns.
 
-   .. example::
-      Inventory aging report, with the :guilabel:`Group By`: :guilabel:`Product` option selected,
-      and with the :guilabel:`Date` column set to :guilabel:`Day`. It gives insight into how much
-      raw fish sashimi products were purchased on each day, and how much it cost. This informs the
-      business owners how much stock is at risk of rotting in stock, per day.
+Graph view
+==========
 
-      .. image:: aging/inventory-aging.png
-        :align: center
-        :alt: Inventory aging report, showing product row items and day columns.
+The stock value can be depicted graphically by clicking the :icon:`oi-area-chart`
+:guilabel:`(graph)` icon. By default, the graph is displayed in :icon:`oi-line-chart` line chart
+view and filtered to show the cumulative total of all inventory value over time in Odoo.
 
+At the top of the report, a :icon:`oi-bar-chart` bar chart or :icon:`oi-pie-chart` pie chart view
+can be selected instead.