Odoo Accounting Services for Manufacturing

Odoo Accounting Services for Manufacturing — frequently asked questions

• Do you maintain standard costs and run variance analysis on Odoo?

  Yes — we maintain the standard-cost table in Odoo (per finished good, based on BOM + routing), refresh standards at the cadence you choose (monthly recommended for inflationary input markets, quarterly for stable), and produce variance reports at month-end. Variance breakdown: PPV (material price), material usage, labour rate, labour efficiency, and overhead absorption. Variances above threshold trigger plant-manager review before they roll into COGS.

• How does WIP get valued during production?

  Odoo's perpetual inventory in continuous-cost mode tracks WIP continuously as production orders consume raw materials and absorb labour + overhead. We configure the production-order journal entries so material issues debit WIP, labour entries debit WIP, overhead absorption debits WIP, and completed production credits WIP and debits finished goods at standard cost. Month-end WIP balance reconciles to physical WIP — no reconciliation surprises.

• Can you handle subcontracting / job-work accounting?

  Yes — subcontractor locations modelled in Odoo as a separate inventory location with its own valuation. Components dispatched to subcontractor reduce home-warehouse inventory and increase subcontractor-location inventory; receipt back of processed components reverses with the added processing cost. GST / VAT treatment of subcontracted services handled per local rules (job-work is a service supply in India under GST; varies in other jurisdictions).

• Do you handle multi-plant manufacturing groups?

  Yes — each plant configured as a separate Odoo company or warehouse depending on legal structure. Plant-level inventory accounts, plant-level overhead-absorption rates, and plant-level P&L. Inter-plant transfers handled as inventory movements (no income statement impact at single-entity level) or as inter-company sales (if separate legal entities, with elimination at consolidation).

• Can you integrate Odoo Manufacturing with shop-floor systems?

  Yes — Odoo MRP integrates with shop-floor MES, barcode scanners, and IoT data collectors via its REST API. Production-order completions can flow from the shop floor into Odoo in real time, triggering the WIP-to-finished-goods journal entry without operator intervention. Implementation of that integration is a separate engagement via /services/odoo-integration.

• What about ITC and GST on capital goods for Indian manufacturers?

  Yes — Indian manufacturers benefit from full input-tax credit (ITC) on raw materials, plus ITC on capital goods (machinery, plant equipment) spread over 5 years. We configure Odoo to track capital-goods ITC schedules, post the annual ITC entries, file GSTR-1 + GSTR-3B monthly + GSTR-9 annual + GSTR-9C audit recon where applicable, and reconcile against GSTR-2A/2B.

• How does this work alongside Odoo MRP implementation?

  Two paths: (1) You're already on Odoo MRP — we take over accounting from your in-house team or current outsourced firm. (2) You're on a separate ERP (SAP B1, Tally with manufacturing add-on, NetSuite) — we'd typically pair this with /services/odoo-migration to move you to Odoo MRP first, then run the accounting on it. Manufacturing migrations typically run 16-22 weeks; accounting cadence starts post-go-live.

• What manufacturing case studies do you have?

  Discrete manufacturing — Axiom Technologies (IT services + hardware), Shree Mahadev Tex Fab (textile manufacturing). Process manufacturing engagements available on request; ask for the specific industry during your scoping call. 100+ manufacturing Odoo implementations across India, UK, Italy, and South Africa.