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How to Configure Inventory in Odoo 18: Complete Setup Guide

DeployMonkey Team · March 24, 2026 7 min read

Inventory Management in Odoo 18

Odoo 18 Inventory provides comprehensive warehouse management with multi-warehouse support, configurable routes, lot and serial tracking, reorder rules, and real-time stock visibility. This guide covers the essential configuration steps to get your inventory system running.

Step 1: Install the Inventory Module

Go to Apps and install Inventory. This also installs the core stock module and its dependencies. Related modules like purchase_stock and sale_stock install automatically when you combine Inventory with Purchase and Sales.

Step 2: Configure Warehouse Settings

Navigate to Inventory > Configuration > Settings. Key settings to configure:

  • Storage Locations — Enable to create sub-locations within your warehouse
  • Multi-Step Routes — Enable for 2-step or 3-step reception and delivery flows
  • Lots & Serial Numbers — Enable product tracking by lot or serial number
  • Packages — Enable package management for grouped products
  • Consignment — Enable vendor-owned stock management

Step 3: Set Up Warehouse Structure

Go to Inventory > Configuration > Warehouses:

  • Configure the warehouse name and short code
  • Set Reception Steps: 1-step (direct), 2-step (input then stock), or 3-step (input, QC, stock)
  • Set Delivery Steps: Ship only, Pick + Ship, or Pick + Pack + Ship
  • Configure resupply from other warehouses if applicable

Step 4: Create Locations

Navigate to Inventory > Configuration > Locations. Create a location hierarchy:

  • Internal locations for your storage areas (zones, racks, shelves, bins)
  • Each location has a type: Internal, View, Customer, Supplier, Transit, or Production
  • Parent-child relationships define the hierarchy

Step 5: Configure Operation Types

Go to Inventory > Configuration > Operation Types. Each warehouse has default operation types:

  • Receipts — Incoming from suppliers
  • Delivery Orders — Outgoing to customers
  • Internal Transfers — Between locations within the warehouse

Configure reservation methods (at confirmation, manual, or by date), lot creation settings, and default source/destination locations on each type.

Step 6: Set Up Product Tracking

On each product's Inventory tab, set the Tracking method:

  • No Tracking — Default, no traceability
  • By Lots — Multiple units per lot number
  • By Unique Serial Number — One unit per serial number

Step 7: Create Reorder Rules

Go to Inventory > Operations > Replenishment:

  • Create rules with Min/Max quantities per product per location
  • Set the route (Buy, Manufacture, or custom) for automatic procurement
  • Configure quantity multiples for ordering in case packs

Step 8: Configure Routes

For advanced flows, go to Inventory > Configuration > Routes:

  • Enable multi-step routes in settings first
  • Default routes include Buy, Manufacture, and MTO
  • Create custom routes with push and pull rules for specific workflows

Key Differences from Odoo 19

  • Odoo 19 introduced the stock relocation wizard for easier quant movement between locations
  • Storage categories and capacity rules are the same in both versions
  • Core inventory functionality — warehouses, locations, routes, tracking — works identically across v18 and v19
  • Some UI refinements and batch processing improvements are v19-specific