The Ultimate 5-Step Guide to Flawlessly Set Up Odoo Inter Company MTO

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Struggling to automate your supply chain across multiple companies in Odoo? You’re not alone. One of the most common—and frustrating—challenges for businesses with sister companies is managing a scenario where one company sells a product, and another manufactures it. This is where the Odoo inter company MTO (Make-to-Order) process becomes a game-changer, but setting it up incorrectly can lead to confusion, manual errors, and operational chaos.

Imagine this: Company A lands a sale for a finished product. That’s great! But Company B is the one that actually builds it. How do you ensure that Company A’s sales order automatically triggers a manufacturing order in Company B, without any manual intervention? If you just use Odoo’s standard routes, the system gets confused. Does it trigger a purchase order or a manufacturing order? This ambiguity can grind your operations to a halt.

But what if you could create a seamless, automated workflow that just works?

This guide will walk you through the definitive solution. We’ll show you how to manipulate Odoo’s routing system to create a crystal-clear, automated Odoo inter company MTO flow. By the end of this tutorial, you’ll be able to configure your system to handle these complex transactions flawlessly, saving you time, eliminating errors, and giving you perfect visibility across your entire supply chain.

The Core Challenge: Why Standard Routes Fail in a Multi-Company Setup

Before we dive into the solution, it’s crucial to understand the problem. In Odoo, routes determine the path a product takes to fulfill a demand. The most common routes are “Buy” (procure from a vendor) and “Manufacture” (create using a Bill of Materials).

When you have a single product shared between two companies with different roles, you hit a wall. For Company A (the seller), the product should follow a “Buy” route from Company B. For Company B (the manufacturer), that same product needs a “Manufacture” route.

If you apply both routes to the product, Odoo doesn’t know which one to prioritize for which company. This conflict prevents the powerful automation of the Odoo inter company MTO system from working correctly. The secret lies in making your routes company-specific.

Step 1: Laying the Foundation: Create Company-Specific Routes

The first and most critical step is to duplicate and customize Odoo’s default routes. This creates unique rules for each company, telling Odoo exactly what to do in every scenario.

Customizing the ‘Manufacture’ Route for Company B

Company B is your manufacturing hub. Let’s create a route that is exclusively tied to its operations.

1. Navigate to Inventory > Configuration > Routes.
2. Find the standard “Manufacture” route.
3. From the “Action” menu, select “Duplicate”.
4. Rename the new route to something clear and specific, like “Manufacture – Company B”. This helps you easily identify it later.
5. Crucially: Ensure you are switched to Company B in Odoo. In the route’s configuration, you can specify that this route is only applicable to Company B’s warehouse. This links the action (manufacturing) to the correct company and location.

By doing this, you’ve created a manufacturing rule that only Company B will ever use.

Customizing the ‘Buy’ Route for Company A

Next, we’ll do the same for Company A, the seller. Company A needs to buy the product from Company B.

1. Go back to Inventory > Configuration > Routes.
2. Find and duplicate the standard “Buy” route.
3. Rename this duplicated route to “Buy from Company B”.
4. Switch your user to Company A.
5. Open the new route and ensure its rules are configured to apply specifically to Company A and its warehouse. This rule tells Odoo that when Company A needs this product, it should trigger a purchase.

Now you have two distinct, company-aware routes that won’t conflict with each other. This is the bedrock of a successful Odoo inter company MTO strategy.

Step 2: Applying the Magic: Configure Your Product

With your custom routes in place, it’s time to apply them to your product. The beauty of Odoo’s multi-company environment is that you can configure the same product differently for each company.

Configuration in Company A (The Seller)

1. Switch to Company A.
2. Navigate to Inventory > Products > Products and open your finished good (e.g., FG1).
3. In the Inventory tab, under the “Routes” section, select:
   • Buy from Company B (your new custom route).
   • Replenish on Order (MTO).
4. Make sure the standard “Manufacture” route is deselected. This tells Odoo that Company A only buys this product on demand.

Configuration in Company B (The Manufacturer)

1. Switch to Company B.
2. Navigate to the same product (FG1).
3. In the Inventory tab, select the “Manufacture – Company B” route you created.
4. Define the Bill of Materials (BOM): While in Company B, ensure the product has a valid BOM associated with it. This is essential for the manufacturing process to be triggered. Navigate to Products > Bills of Materials to set this up.

You have now instructed Odoo on the precise Odoo inter company MTO logic: when a demand arises in Company A, buy it; when that demand is passed to Company B, manufacture it.

Step 3: Connecting the Dots: Enable Inter-Company Transactions

This is the automation powerhouse. Odoo can automatically create corresponding documents between companies. When Company A creates a purchase order for Company B, Odoo can automatically generate a sales order in Company B.

1. Activate Developer Mode (Settings > Activate the developer mode).
2. Navigate to Settings > General Settings > Companies.
3. For both Company A and Company B, configure the “Inter-Company Transactions.”
4. Set the rule: When a Purchase Order is created for the other company, automatically create a Sales Order. This synchronizes the workflow and removes the need for manual data entry.

For more detailed information on this feature, you can review the official Odoo documentation on Inter-Company Flows.

Step 4: The Full-Cycle Test Drive: Watch the Automation Unfold

With everything configured, let’s test the entire Odoo inter company MTO flow from start to finish.

1. A New Sale: In Company A, create a new Sales Order for a customer for your finished product (FG1).
2. Automatic RFQ: Upon confirming the SO, Odoo automatically generates a Purchase Request for Quotation (RFQ) in Company A, with Company B set as the vendor.
3. Confirm the Purchase: Confirm the RFQ in Company A to turn it into a Purchase Order.
4. Automatic SO: Instantly, a new Sales Order appears in Company B from Company A.
5. Automatic MO: Because the product in Company B is set to MTO and has the “Manufacture – Company B” route, confirming this SO automatically triggers a Manufacturing Order (MO).
6. Produce the Goods: In Company B, go to the Manufacturing module, process the MO, and mark it as done. The finished goods are now in stock.
7. Ship to Company A: In Company B, validate the delivery order associated with its sales order. The goods are now “shipped” to Company A.
8. Receive and Ship to Customer: Back in Company A, receive the products from the purchase order. The inventory is now available, reserved, and ready. Finally, validate the delivery order for the original customer sale.

The entire cycle, from initial sale to final delivery, is seamlessly connected and automated.

Step 5: Pro Tips for a Robust Odoo Inter Company MTO Setup

To take your configuration to the next level, consider these points:

• Warehouse & Locations: Ensure your inter-company transit locations are properly configured to track inventory moving between your warehouses. Learn more about Advanced Odoo Warehouse Management here.
• Costing: This setup directly impacts your product costs and inventory valuation. Keep a close eye on how inter-company pricing is handled to ensure accurate financial reporting.
• Troubleshooting: If a step doesn’t trigger, check the product’s route configuration first. Then, look at the inter-company rules. Odoo’s logs can also provide clues about what went wrong.

Conclusion: Transform Your Multi-Company Operations

By moving beyond standard configurations and embracing company-specific routes, you can unlock the true potential of the Odoo inter company MTO workflow. What was once a source of manual work and potential errors can become a fully automated, efficient, and transparent process.

This setup not only streamlines your supply chain but also provides a scalable foundation for growth. As your business expands, this robust logic will ensure your inter-company operations run like a well-oiled machine.

Ready to implement this powerful workflow in your Odoo instance? If you have any questions or need expert guidance, leave a comment below or reach out to our team of Odoo specialists today