ABC Analysis
ABC analysis groups inventory items by their relative importance, commonly annual consumption value.
Read definitionERP concepts, explained
ERP & Odoo Glossary
Understand the terms behind your business processes. Start with the general meaning, then see how the concept works in Odoo.
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Definitions with Odoo 19 documentation references and related reading from ERPixel.
Absence Rate
Absence rate measures absent time relative to scheduled or available working time over a defined period.
Read definitionAccounting Equation
The accounting equation connects assets, liabilities, and equity: Assets = Liabilities + Equity.
Read definitionAccounts Payable (AP)
Accounts payable are amounts a business owes suppliers for goods or services already invoiced or otherwise recognized as payable.
Read definitionAccounts Payable Aging
Accounts payable aging groups outstanding supplier balances into time buckets, commonly according to due dates.
Read definitionAccounts Receivable (AR)
Accounts receivable are amounts customers owe a business for recognized sales or invoices.
Read definitionAccounts Receivable Aging
Accounts receivable aging groups outstanding customer balances by age or overdue period.
Read definitionAnalytic Accounting
Understand analytic accounting, analytic accounts, plans and cost distribution in Odoo, and how they support project and department profitability reporting.
Read definitionApplicant Tracking
Applicant tracking records candidates, applications and their progress through recruitment stages.
Read definitionApps and Modules
Learn the difference between ERP applications and software modules, how Odoo uses both concepts, and why module dependencies matter when changing a database.
Read definitionAsset Capitalization
Asset capitalization records eligible expenditure as an asset instead of immediately expensing it.
Read definitionAsset Disposal
Asset disposal removes an asset from use and the accounting register through sale, scrapping or another retirement.
Read definitionAsset Transfer
An asset transfer moves an asset between locations, custodians, departments or legal entities.
Read definitionAssets
Assets are present economic resources controlled by an entity as a result of past events.
Read definitionAudit Trail
An audit trail preserves evidence of transactions and relevant changes, including who performed an action and when.
Read definitionAutomation Rules
Understand automation rules in ERP systems and Odoo: triggers, conditions and actions, with a simple example of automating a business follow-up.
Read definitionAvailable to Promise (ATP)
Available to promise is the quantity that can be committed to new customer demand after considering existing stock, scheduled supply and prior commitments within a defined horizon.
Read definitionBackorder
A backorder records the unfulfilled remainder of an order when only part of its required quantity is completed.
Read definitionBalance Sheet
A balance sheet shows assets, liabilities and equity at a specific date.
Read definitionBank Reconciliation
Learn what bank reconciliation means, how Odoo matches bank transactions to accounting records, and where reconciliation models fit into the process.
Read definitionBatch Data Synchronization
Batch data synchronization exchanges sets of records at intervals rather than processing each event immediately.
Read definitionBenefits Administration
Benefits administration manages employee benefit eligibility, selections, contributions and changes.
Read definitionBill of Materials (BoM)
Understand a bill of materials, its components and quantities, and how Odoo uses BoMs for manufactured products, operations and kits.
Read definitionBudget Variance
Budget variance is the difference between an actual or committed amount and its budget baseline.
Read definitionCapacity Planning
Capacity planning compares the work required with the resources available over time.
Read definitionCash Conversion Cycle
The cash conversion cycle estimates how long operating cash is tied up between paying suppliers and collecting from customers.
Read definitionCash Flow Statement
A cash flow statement explains changes in cash and cash equivalents over a period, usually distinguishing operating, investing and financing activities.
Read definitionChart of Accounts (COA)
A chart of accounts is the organized list of ledger accounts used to classify assets, liabilities, equity, income and expenses.
Read definitionChart of Accounts Mapping
Chart of accounts mapping relates accounts in one accounting structure to equivalent reporting accounts in another.
Read definitionCollections Management
Collections management organizes actions to recover customer debts, including reminders, responsible owners, dispute handling and escalation.
Read definitionContract Management
Contract management controls the creation, approval, validity and obligations of business agreements.
Read definitionConversion Rate
Conversion rate definition and formula, with lead-to-opportunity and opportunity-to-won examples for Odoo CRM.
Read definitionCorrective Action
A corrective action addresses the cause of a nonconformance to prevent recurrence.
Read definitionCost per Hire
Cost per hire is the recruitment expenditure attributable to a period or hiring cohort divided by the number of hires in that same scope.
Read definitionCredit Management
Credit management controls the risk of selling on credit by evaluating customers, setting limits and terms, and reviewing overdue exposure.
Read definitionCredit Note
A credit note reduces or reverses a previously billed amount, for example because goods were returned or an invoice was corrected.
Read definitionCRM
CRM meaning: customer relationships, communication history and follow-up work, plus how Odoo CRM connects leads and opportunities to the wider ERP.
Read definitionCustomer Master Data
Customer master data is the reusable information identifying customers, billing and delivery addresses, payment terms and relevant commercial settings.
Read definitionCycle Time
Cycle time is the elapsed time to complete a defined operation or produce a unit, using stated start and end boundaries.
Read definitionDays Payable Outstanding (DPO)
DPO estimates the average number of days a business takes to pay suppliers.
Read definitionDays Sales Outstanding (DSO)
DSO estimates the average collection period for credit sales.
Read definitionDeclining-Balance Depreciation
Declining-balance depreciation applies a rate to an asset’s remaining depreciable value, creating larger charges earlier in its life.
Read definitionDemand Forecasting
Demand forecasting estimates future customer or internal demand over a defined horizon.
Read definitionDepreciation
Depreciation systematically allocates the depreciable amount of an asset over its useful life.
Read definitionDropshipping
Understand dropshipping, its supplier-to-customer fulfilment flow, and how Odoo connects sales orders, supplier purchases and direct deliveries.
Read definitionElectronic Data Interchange (EDI)
EDI exchanges structured commercial documents between businesses using agreed formats and identifiers.
Read definitionEmployee Lifecycle
The employee lifecycle is the sequence of employment stages from recruitment and onboarding through role changes and eventual departure.
Read definitionEmployee Master Data
Employee master data is the maintained set of personnel information used across HR processes, including identity, employment details, department and working arrangements.
Read definitionEmployee Onboarding
Employee onboarding is the structured preparation of a new employee for their job, covering introductions, equipment, access and required training.
Read definitionEmployee Turnover Rate
Employee turnover rate measures employee departures over a period relative to an agreed workforce base, often average headcount.
Read definitionEngineering Change Management
Engineering change management controls revisions to product designs, component requirements and production instructions.
Read definitionEquity
Equity is the residual interest in assets after deducting liabilities: Equity = Assets − Liabilities.
Read definitionExpense Tracking
Expense tracking records business expenditure, supporting documents, responsibility and the activity that incurred the cost.
Read definitionField-Level Security
Field-level security controls who can read or modify specific fields, even when they can access the underlying record.
Read definitionFinancial Consolidation
Financial consolidation combines separate entities’ financial information into group statements, with the required alignment, currency translation and elimination of internal transactions.
Read definitionFirst In, First Out (FIFO)
FIFO means using the oldest eligible units or cost layers first.
Read definitionFiscal Positions
Understand fiscal positions in Odoo: transaction-specific tax and account mapping, partner assignment and automatic selection within accounting workflows.
Read definitionFixed Assets
Fixed assets are long-lived tangible resources used in operations rather than held for ordinary resale.
Read definitionGeneral Ledger (GL)
The general ledger is the complete set of accounts recording an organization’s financial transactions.
Read definitionGoods Receipt
A goods receipt records the arrival and acceptance of goods from a supplier or another source.
Read definitionInspection Plan
An inspection plan defines what to inspect, when, how often and against which acceptance criteria.
Read definitionIntercompany Transactions
Intercompany transactions are sales, purchases, services or other transfers between entities in the same corporate group.
Read definitionInventory
Inventory means the goods and materials a business holds, and the records used to manage them.
Read definitionInventory Adjustment
An inventory adjustment corrects recorded stock to reflect a verified quantity or other authorized change.
Read definitionInventory Management
Inventory management controls quantities, availability, replenishment and value of goods.
Read definitionInventory Synchronization
Inventory synchronization exchanges stock-related data between systems using an agreed meaning, identifier and timing.
Read definitionInventory Turnover
Inventory turnover measures how often stock is consumed or sold over a period.
Read definitionInventory Valuation
Learn what inventory valuation means, the difference between costing and accounting timing, and how Odoo 19 separates stock value from accounting entries.
Read definitionInvoice Processing
Invoice processing is the receipt or creation, verification, approval and accounting of an invoice.
Read definitionJournal Entry
A journal entry records a financial transaction through debit and credit lines that balance.
Read definitionLabor Tracking
Labor tracking records the time people spend on work for execution, costing or performance analysis.
Read definitionLanded Costs
Understand landed costs, how freight and related charges affect inventory value, and how Odoo allocates additional costs across received products.
Read definitionLast In, First Out (LIFO)
LIFO means using the most recently received units or cost layers first.
Read definitionLead
What is a lead? Understand unqualified enquiries, qualification and conversion into opportunities in Odoo CRM.
Read definitionLead Times
Learn what lead times measure, how Odoo uses purchasing, production and delivery durations, and why scheduling buffers differ from actual processing time.
Read definitionLeave Management
Leave management administers employee time-off requests, entitlement balances, approvals and absence reporting.
Read definitionLiabilities
Liabilities are present obligations to transfer economic resources arising from past events.
Read definitionLocation
A location is a defined place or stock position used to record where goods are held or how they move.
Read definitionLot Numbers
Learn how lot numbers identify product batches, how Odoo tracks their movements, and why batch traceability differs from individual serial-number tracking.
Read definitionMake to Order (MTO)
Understand make to order and Odoo’s Replenish on Order route, including purchase and manufacturing demand, sales-order links and differences from stock rules.
Read definitionManufacturing Routing
A manufacturing routing defines the ordered operations and resources required to make a product.
Read definitionMaster Data
Understand ERP master data, its distinction from transactions, and how consistent products, contacts and identifiers support connected processes in Odoo.
Read definitionMaster Production Schedule (MPS)
Understand a master production schedule, how Odoo uses demand forecasts and stock targets, and how planned replenishment differs from confirmed production orders.
Read definitionMaterial Consumption
Material consumption records components used in manufacturing.
Read definitionMaterial Requirements Planning (MRP)
MRP derives time-phased component requirements from finished-product demand, bills of materials, existing stock and scheduled supply.
Read definitionMin/Max Inventory Levels
Min/max levels define a replenishment threshold and a target stock level.
Read definitionMulti-Company
Multi-company ERP manages several business entities in one system while retaining the accounting and operational boundaries required for each entity.
Read definitionMulti-Currency
Multi-currency processing records transactions in currencies other than an entity’s accounting currency, while maintaining values in that accounting currency.
Read definitionMulti-Warehouse Management
Multi-warehouse management controls stock and movements across multiple physical sites.
Read definitionNonconformance Report
A nonconformance report records a failure to meet a specified requirement, with evidence and responsibility for its disposition.
Read definitionOpportunity
What is a sales opportunity? Understand potential sales, qualification, pipeline ownership and how opportunities work in Odoo CRM.
Read definitionOrder Fill Rate
Order fill rate measures the share of eligible customer orders fulfilled according to an agreed criterion, such as complete shipment on the first attempt.
Read definitionOrder Fulfillment
Order fulfilment executes a customer commitment by sourcing, preparing and delivering goods or providing services.
Read definitionOrder Management
Order management controls the lifecycle from a customer’s accepted order through fulfilment, invoicing and exceptions.
Read definitionOrganizational Structure
Organizational structure describes how departments, reporting relationships and responsibilities are arranged.
Read definitionOverall Equipment Effectiveness (OEE)
In common manufacturing practice, OEE combines availability, performance and quality to measure productive use of planned production time.
Read definitionOvertime
Overtime is working time beyond the normal threshold defined by an employment arrangement or applicable rules.
Read definitionPacking
Packing prepares picked goods into suitable packages for handling or shipment.
Read definitionPayment Allocation
Payment allocation assigns received or outgoing money to specific invoices, bills or open account items.
Read definitionPayment Processing
Payment processing manages incoming and outgoing payments, their methods, authorization and matching to obligations.
Read definitionPayroll
Payroll is the process of calculating employee earnings, deductions, employer costs and net pay for a pay period.
Read definitionPayroll Deductions
Payroll deductions are amounts subtracted from gross earnings, such as employee contributions, tax or authorized repayments.
Read definitionPerfect Order Rate
Perfect order rate measures the percentage of orders completed without any defined failure, usually including complete quantity, timeliness, damage-free delivery and correct documents.
Read definitionPeriod Close
Period close is the review and finalization of accounting records for a reporting period.
Read definitionPhantom Assembly
A phantom assembly groups components in a bill of materials without treating the intermediate grouping as a separately stocked manufactured item.
Read definitionPicking
Picking selects the required goods from stock to satisfy a delivery or production requirement.
Read definitionPosition Management
Position management defines jobs, responsibilities and staffing needs, distinguishing the role from the individual who occupies it.
Read definitionPosting
Posting is the step that records an approved accounting transaction in the ledger.
Read definitionProcurement
Procurement is the process of identifying a purchasing need, selecting a supplier and obtaining goods or services under agreed terms.
Read definitionProduct Return
A product return moves previously delivered goods back from a customer, or received goods back to a supplier.
Read definitionProduct Variants
Learn how product variants differ from templates, how attributes define combinations in Odoo, and why variant identity matters for stock and manufacturing.
Read definitionProduction Planning
Production planning decides what quantities to manufacture and when, considering demand, inventory and supply constraints.
Read definitionProduction Scheduling
Production scheduling assigns manufacturing work to resources and times so demand can be completed.
Read definitionProfit and Loss Statement (P&L)
A profit and loss statement reports revenue, expenses and profit or loss over a defined period.
Read definitionProject Accounting
Project accounting attributes revenue and costs to individual projects so their financial performance can be understood.
Read definitionProject Billing
Project billing charges customers for work according to agreed terms, such as fixed price, milestones or time and materials.
Read definitionProject Budget
A project budget sets planned revenue or expenditure for a defined project and period.
Read definitionProject Profitability
Project profitability compares the revenue attributable to a project with the costs of delivering it.
Read definitionPurchase Order (PO)
A purchase order records a buyer’s confirmed request to a supplier, including goods or services, quantities, prices and terms.
Read definitionPurchase Requisition
A purchase requisition is an internal request to obtain goods or services, usually reviewed before a buyer commits to a supplier.
Read definitionPutaway
Putaway moves received goods to appropriate storage positions.
Read definitionQuality Check
A quality check is a recorded inspection or verification against a defined requirement.
Read definitionQuality Management
Quality management defines standards, inspection controls and actions to maintain and improve output quality.
Read definitionQuantity on Hand
Quantity on hand is the amount of a product currently recorded in the selected stock scope. It is a recorded balance, which should be checked against physical counts.
Read definitionReorder Point
A reorder point is the stock threshold at which replenishment should start to cover demand during supply lead time, often including safety stock.
Read definitionReordering Rules
Learn how reordering rules maintain stock levels, how Odoo uses forecast quantities and min/max settings, and how replenishment differs from make to order.
Read definitionRequest for Quotation (RFQ)
An RFQ asks a supplier to offer prices and delivery terms for specified goods or services.
Read definitionResource Allocation
Resource allocation assigns people or equipment to required work and time periods.
Read definitionResource Utilization
Resource utilization describes how much available resource capacity is actually used for a defined class of work.
Read definitionRevenue Recognition
Revenue recognition determines when and how much revenue is recorded as earned under the business’s accounting policy.
Read definitionRole-Based Access Control
Role-based access control assigns permissions through roles or groups reflecting responsibilities.
Read definitionRoute
A route describes the sequence or rules a product follows through a business process, such as receipt, storage and delivery.
Read definitionRun Time
Run time is the duration of active processing in a production operation.
Read definitionSales Order
A sales order records a confirmed customer purchase, including products or services, quantities, prices and delivery or billing terms.
Read definitionSales Quotation
A sales quotation is an offer specifying products or services, prices and commercial terms for a potential sale.
Read definitionScrap Rate
Scrap rate measures the share of material or output discarded as unusable, using a stated denominator and period.
Read definitionSegregation of Duties
Segregation of duties separates conflicting responsibilities, such as creating suppliers, approving bills and releasing payments.
Read definitionSerial Numbers
Understand serial numbers as individual item identifiers, how Odoo records their movements, and how serial tracking differs from tracking quantities by lot.
Read definitionSetup Time
Setup time is the time needed to prepare a production resource for an operation, such as tooling or configuration.
Read definitionShift Scheduling
Shift scheduling assigns people or other resources to time slots required to cover work.
Read definitionShipping
Shipping dispatches goods to a customer or another destination and records the movement out of the warehouse.
Read definitionShop Floor Control
Shop floor control coordinates and records the actual execution of production operations, including progress, consumed materials, operator time and exceptions.
Read definitionStandard Operation Time
Standard operation time is the expected duration of a defined production operation under stated conditions.
Read definitionStock Count
A stock count measures the physical quantity of goods at a location and date.
Read definitionStorage Location
A storage location identifies a defined place where stock is held or a logical position used to record movements.
Read definitionStraight-Line Depreciation
Straight-line depreciation allocates an asset’s depreciable amount evenly over its useful life, subject to timing conventions.
Read definitionSunk Cost
An incurred cost that cannot be recovered, regardless of the next business decision.
Read definitionSupplier Lead Time
Supplier lead time is the expected elapsed time between placing a purchasing order and receiving the goods.
Read definitionTax Withholding
Tax withholding is the deduction of tax from a payment before the recipient receives the net amount.
Read definitionThree-way Matching
Understand three-way matching between a purchase order, receipt and vendor bill, and how Odoo signals discrepancies when reviewing bills for payment.
Read definitionTime and Attendance
Time and attendance records when employees are present and how much time they work.
Read definitionTime to Hire
Time to hire measures the elapsed time between a candidate’s entry into the hiring process and an agreed hiring endpoint.
Read definitionTime Tracking
Time tracking records work duration and its allocation to an activity, project or task.
Read definitionTransfer Pricing
Transfer pricing is the pricing of goods, services or other transactions between related entities.
Read definitionUnits of Measure (UoM)
Understand units of measure, inventory and purchase conversions in Odoo, and how consistent quantities support purchasing, stock records and bills of materials.
Read definitionUtilization Rate
Utilization rate expresses used capacity as a percentage of available capacity for the same period.
Read definitionVendor Management
Vendor management maintains supplier information and evaluates supplier offers and performance.
Read definitionVendor Master Data
Vendor master data is the reusable information identifying suppliers and their commercial and payment arrangements.
Read definitionWarehouse
A warehouse is a physical site where a business receives, stores and dispatches goods. One company can operate several warehouses.
Read definitionWarehouse Management
Warehouse management controls receiving, storage, picking, packing, dispatch and counts within a warehouse.
Read definitionWave Planning
Wave planning groups selected picking work into coordinated execution windows or groups based on operational criteria.
Read definitionWeighted Average Cost
Weighted average cost values units using total eligible cost divided by total eligible quantity.
Read definitionWork Breakdown Structure (WBS)
A WBS hierarchically decomposes project scope into manageable deliverables or work packages.
Read definitionWork Centers
Learn what a work center represents, how Odoo assigns manufacturing operations to resources, and how working hours, capacity and costs affect planning.
Read definitionWork Order
A manufacturing work order records the execution of a particular production operation for a manufacturing requirement.
Read definitionYear-End Close
Year-end close finalizes the accounting records for a fiscal year and prepares the opening position for the next year.
Read definitionYield Rate
Yield rate is the share of production input or processed units that becomes acceptable output.
Read definition