Odoo Opening Stock and Closing Stock

In Malaysia, most of the local Accounting and Inventory software will be using the following formula to calculate the Stock valuation.

Cost of Goods in the Profit & Loss

Opening Stock + Purchase - Closing Stock - Purchase Return

The following are the steps to adjust the stock

a) In the end of each financial year 2022, create a journal entry to CR a closing stock (Cost of Value type) and DR to Stock valuation account (Current Asset type)

b) In the beginning of the financial year 2023, create a journal entry to DR a opening stock (Cost of Value type) and CR to Stock valuation account (Current Asset type).

c) In the 2023 P&L, the opening stock will be appearing in the COGS.