How the Inventory ABC Analysis Report Works in Odoo

Introduction:

Managing inventory is one of the biggest challenges for any business. Keeping too much stock blocks cash, while keeping too little can lead to missed sales and unhappy customers. This is where the Inventory ABC Analysis Report in Odoo becomes extremely useful.

The ABC Analysis Report helps businesses understand which products matter the most and where they should focus their attention. Instead of treating all products equally, this report helps you manage inventory strategically and intelligently.

​In this blog, we will explain how the Inventory ABC Analysis Report works in Odoo, its key features, and how it helps businesses make better inventory decisions.

What Is Inventory ABC Analysis?

What is an “Inventory ABC Analysis”? “Inventory ABC Analysis” has its basis in the 80/20 Rule, popularly known as Pareto’s Principle

• A limited number of products represented a large share of the total inventory.
• Not all products need the same level of control and attention.

ABC analysis divides products into three categories:

• Class A – High-value products that contribute the most to the total value of the inventory
• Class B – Medium Value Products and Their Impact
• Class C – Low-value products with minimal financial implications

Identifying these categories would allow the business to focus more on the product's vital aspects.

How the Inventory ABC Analysis Repor​t Works in Odoo

The Inventory ABC Analysis Report in Odoo automatically analyses your stock data and classifies products into A, B, or C categories. It uses real inventory figures such as consumption, quantity, and cost to generate accurate results.

Let’s understand how this process works step by step.

Smart ABC Classification

One of the most significant advantages of this report is Smart ABC Classification.

Odoo automatically categorizes products into:

• Class A
• Class B
• Class C

The classification is done based on either:

• Cumulative Consumption Value, or
• Cumulative Quantity Consumed

For example:

• Products contributing to the top 70% of total value may fall under Class A
• The next 20% may fall under Class B
• The remaining products become Class C

This eliminates the need for guesswork that comes with decision-making.

Configurable Thresholds to Match Your Business

Every business is different in its own way. This is understood clearly by Odoo.

Also, with the use of Configurable Thresholds, an individual can set their own limits on each category, e.g.:

• Class A: up to 70%
• Class B: Up to 90%
• Class C = remaining 10%

If your business wants stricter control or a different distribution, you can easily adjust these values. This flexibility makes the ABC Analysis Report suitable for manufacturing, trading, retail, and distribution businesses.

Multi-View Analysis for Better Understanding

Data is only valid when it is easy to understand. Odoo provides Multi-View Analysis, allowing users to analyze inventory from different perspectives.

List View

• Shows product-wise detailed data
• Displays ABC class, quantity, cost, value, and stock levels
• Useful for operational and day-to-day analysis

Pivot View

• Provides summarized and grouped data
• Helps management understand trends and overall impact
• Suitable for high-level reporting and decision-making.

Both options are available directly on the screen for convenient analysis.

Export Reports of PDF and Excel Formats

Odoo enables the export of the ABC Analysis Report into:

Format – PDF, which is good for meetings, auditing, presentations, etc.

• Excel format – helps in further analysis of the problem, sharing in a group context, etc.

This feature ensures that inventory insights are not limited to Odoo users alone and can be easily shared across departments.

Advanced Filtering for Accurate Results

Inventory behaviour can vary by location, time period, or product category. Odoo ABC Analysis Report includes Advanced Filtering options to give you precise insights.

You can filter the report by:

• Company
• Date Range
• Warehouse
• Location
• Product
• Product Category

For example:

• Analyze ABC classification for a specific warehouse
• Review high-value items for a particular product category
• Check inventory behavior during a selected time period

These filters help businesses focus on precisely what they want to analyze.

Comprehensive Data for Every Product

The ABC Analysis Report does not just show product categories. It offers complete inventory insights on all items, such as:

• Quantity Consumed
• Unit Cost
• Consumption Value
• Stock On Hand
• Stock Value

This precise information helps businesses not only know which products are important but also why they are important.

Why Inventory ABC Analysis Is Important for Businesses

Using the Inventory ABC Analysis Report in Odoo helps businesses:

• Reduce inventory carrying costs
• Improve cash flow management
• Focus attention on high-impact products
• Avoid over-stocking low-value items
• Improve purchase planning and forecasting
• Support better decision-making with data

Instead of blindly managing inventory, businesses can prioritize resources where they matter most.

Real-World Example

Imagine a business managing 500 products:

• 50 products generate 75% of total inventory value → Class A
• 100 products generate 15% of total value → Class B
• 350 products generate only 10% of the total value → Class C

With ABC Analysis:

• Class A products get frequent monitoring and tight control
• Class B products get regular checks
• Class C products require minimal attention

This approach saves time, money, and effort.

Conclusion

The Inventory ABC Analysis Report is an important feature of Odoo, particularly helpful for businesses looking to improve inventory control. It helps businesses utilize the products they own more intelligently through the automatic categorization of products, the flexibility of the threshold, the various views, and the reports.

Be it a developing organization or an established entity, ABC analysis helps you gain clarity and control over your inventory decision-making process.

Therefore, if your aim and objectives are to lower costs, enhance cash flow, and focus on the right products, then the Inventory ABC Analysis Report in Odoo is a "must-use" feature.

If you want to use or customize the Inventory ABC Analysis Report, you can find the app on the Odoo App Store or get expert support from Devintellecs.

Our team can help you choose the right setup, customize the report to your business needs, and make inventory management easier and more effective.