In Odoo, removal strategies and costing methods are specified at the product category level. This means that you could have one set of products that use standard costing while another uses a FIFO strategy. Let’s see how to setup a FIFO strategy for our coffee mugs.

Go to the Inventory menu then under Configuration choose Products->Product Categories.

Here we see that we have setup a category Novelty Items that has the Parent Category of All / Saleable. Under Logistics we have chosen the First in First Out option. Finally, under Inventory Valuation we have chosen First in First Out (FIFO) for our Costing Method.

After clicking Save you can then assign the Coffee Mugs product to the Novelty Items category.

If you watched carefully, you will notice that an Inventory Valuation option appears once you assign Coffee Mugs to the Novelty Items category. Now it will be up to you to take the time experimenting with various removal strategies and costing methods. Create purchase order and sales orders and see how they affect your inventory valuation and other reports.

Odoo offers a nice little resource for seeing the various costing strategies and how they affect various report calculations. It can be found here: https://www.odoo.com/documentation/functional/valuation.html