How the Replenish on MTO Works in Odoo 19 Purchase

Introduction
When a sales order for a product is confirmed, Odoo 19 Purchase's Replenish on MTO (Make to Order) procurement method immediately creates a manufacturing order or purchase order. Instead of depending on pre-stocked inventory, this approach guarantees that goods are only purchased or manufactured in response to real client demand. It ensures traceability and precise fulfillment by establishing a direct connection between the sales order and the manufacturing or procurement process. By keeping inventory levels low, MTO assists companies in lowering carrying costs and overstocking. All things considered, it is perfect for businesses that deal with customized goods or things that aren't frequently held in stock.

• Lower Inventory Costs: By only buying or producing goods as needed, excess stock and storage costs are kept to a minimum.

• Better Cash Flow: Money is not invested in unsold inventory because products are ordered based on customer demand.

• Precise Order Fulfillment: Every production or purchase order is immediately connected to a particular sales order, which minimises mistakes and guarantees on-time delivery.

• Improved Traceability: Odoo gives complete visibility and control over the supply chain by tracking each stage, from supplier purchases to client orders.

• Customization Flexibility: Perfect for configurable or made-to-order items, this feature enables companies to effectively satisfy specific client needs.

This blog post will discuss how a user can use the Replenish on Order (MTO) capability to initiate a Manufacturing Order or Purchase Order. This feature makes sure that goods are only manufactured or purchased when a sales order has been verified. We'll go over how this automation contributes to the maintenance of ideal inventory levels. Let's now examine how Odoo 19 Purchase's recently added Replenish on Order (MTO) functionality operates.

For that lets enable the Replenish on Order (MTO) from the purchase settings. Click on the Configuration menu and select Settings. from the Logistics section enable the  Replenish on Order (MTO) then save it.

: Configuration > Settings > Replenish on Order (MTO) > Save

Trigger Purchase Order using Replenish on Order (MTO)

Every time a sales order for a product is confirmed, a purchase order is automatically created in Odoo 19 Purchase thanks to the Replenish on Order (MTO) functionality. Instead than keeping surplus inventory, this strategy guarantees that products are bought directly from customers based on their needs. It assists companies in ensuring timely product availability, optimising stock levels, and streamlining their procurement process.

For that, let's check one product. The product is named ‘PEN.’ Here, the products are not stocked inside the inventory, which means it is not available. 

Then check the Purchase tab. The purchase tab contains one vendor price list. Here, the vendor is Demo, and the cost is set as 100.

Then next is the Inventory tab. Enable the Replenish on Order (MTO) from there.

Trigger Purchase Order using Replenish on Order (MTO)

Every time a sales order for a product is confirmed, a purchase order is automatically created in Odoo 19 Purchase thanks to the Replenish on Order (MTO) functionality. Instead than keeping surplus inventory, this strategy guarantees that products are bought directly from customers based on their needs. It assists companies in ensuring timely product availability, optimising stock levels, and streamlining their procurement process.

For that, let's check one product. The product is named ‘PEN.’ Here, the products are not stocked inside the inventory, which means it is not available. While checking the smart tab, there is no Bill of Material created for this product.

After Sale order Confirmation

Before delivery, open the Purchase. Here, the Purchase order is triggered because of the Relish on Order (MTO). Open the purchase order. Confirm the order.

Then, complete the receipt by validating. Now the product has arrived in the company's stock.

Conclusion

The Replenish on Order (MTO) feature in Odoo 19 Purchase offers a smart, demand-driven procurement workflow by automatically creating purchase orders once a sales order is confirmed. This eliminates the need to maintain excess inventory while ensuring that products are available exactly when required. By directly linking sales and procurement operations, businesses benefit from improved traceability, better stock control, and reduced operational risks. Overall, the MTO approach is especially useful for companies handling customized or low-stock products, helping them optimize inventory costs while maintaining efficient and timely order fulfillment.

If you are looking for an ERP implementation partner with diverse industry experience feel free to contact us. We have proven track record of successful implementations across various sectors including Odoo for Manufacturing, Odoo for Trading, Odoo for FMCG, Odoo for Oil & Gas, Odoo for Diary, Odoo for Pharma, Odoo for Cosmetic Clinic, Odoo for Contracting Companies, Odoo for HVAC, Odoo for Logistics, Odoo for Automobile, Odoo for Laundry, Odoo for Field Service, Odoo for E-Commerce & many more

ZestyBeanz offers Developer / Consultant outsourcing programs, Chat with us in Whatsapp and Hire Odoo Developers, Mobile Application Developers, Consultants.

#OdooDevelopment #Odoo18 #CustomChatterButton #TechnicalBlog #OdooCustomization #OdooTips #Odoofeatures