Create and Manage Product Categories in Odoo Inventory

Product categories in Odoo Inventory let you organize your products into a structured, hierarchical system that drives costing, accounting, and logistics behavior. Categories follow a parent–child tree structure, meaning each category can belong to a parent and have multiple children beneath it. There are two methods for creating and managing categories: the Product Category Import Template, which is best for loading large numbers of categories at once, and the Odoo UI, which offers a visual, step-by-step experience suited for small adjustments.

Category Structure

Categories are organized in a tree-like hierarchy with unlimited nesting levels. A top-level (Level 1) category has no parent, while each child category references the category directly above it. This structure keeps your product catalog clean and makes it easy to apply shared settings — such as removal strategies or accounting properties — at a category level that cascades to its children. Here is an example of a three-level hierarchy:

Products
├── Hardware
│   ├── Monitors
│   ├── Computers
│   └── Accessories
├── Services
│   ├── Consultancy
│   └── Maintenance
└── Consumables
    ├── Office Supplies
    └── Cleaning Products

Odoo represents the full path to any category using the → separator. For example, the Monitors category is displayed as:

Products → Hardware → Monitors

This full path is what you will see throughout Odoo’s UI when selecting or filtering by category.

Setup Methods

Import Template
Odoo UI

The Import Template method is recommended when you are performing an initial implementation or loading a large number of categories at once. It is faster and less error-prone than creating categories one by one through the UI.

Template Worksheets

The Product Category Import Template contains four worksheets — one for each hierarchy level. Each sheet must be completed before importing.

Sheet Name	Purpose
Category Level 1	Top-level parent categories
Category Level 2	Children of Level 1 categories
Category Level 3	Children of Level 2 categories
Category Level 4	Children of Level 3 categories

Columns

Each worksheet uses the following columns:

Name – The category name as it will appear in Odoo.
Parent Category – The category directly above this one in the hierarchy. Not used on Level 1 sheets.
Force Removal Strategy – Optional. Defines how stock is removed from this category (e.g. FIFO, LIFO, FEFO).

Level 1 Example

Level 1 categories have no parent, so only the Name and optional Force Removal Strategy columns are needed.

Name	Force Removal Strategy
Products	First In First Out (FIFO)

Level 2 Example

Level 2 categories reference their Level 1 parent by name in the Parent Category column.

Name	Parent Category	Force Removal Strategy
Hardware	Products	First In First Out (FIFO)
Services	Products	First In First Out (FIFO)
Consumables	Products	First In First Out (FIFO)

Level 3 Example

Level 3 categories reference their parent using the full path in Level1 / Level2 format.

Name	Parent Category	Force Removal Strategy
Monitors	Products / Hardware	First In First Out (FIFO)
Computers	Products / Hardware	First In First Out (FIFO)
Accessories	Products / Hardware	First In First Out (FIFO)
Consultancy	Products / Services	First In First Out (FIFO)
Maintenance	Products / Services	First In First Out (FIFO)
Office Supplies	Products / Consumables	First In First Out (FIFO)
Cleaning Products	Products / Consumables	First In First Out (FIFO)

For Level 3 and Level 4 categories, the Parent Category column must use the full path format: Level1 / Level2 (e.g. Products / Hardware). Using only the immediate parent name will cause an import error if that name is not unique across the template.

Prepare and review all four level sheets before importing any of them. Start from Level 1 and work downward — Odoo must be able to resolve each parent reference before a child category can be created.

The Odoo UI method is ideal for small adjustments, one-off additions, or when you want to visually browse and verify your existing category hierarchy. Changes take effect immediately after saving.

Steps to Create a Category

Navigate to Product Categories

In Odoo, go to Inventory → Configuration → Product Categories.

Click Create

Click the Create button in the top-left corner of the list view to open a new category form.

Enter the Category Name

Type a name for your category in the Category Name field. Choose a clear, descriptive name that reflects the products it will contain.

Select a Parent Category

In the Parent Category field, search for and select the category that sits directly above this one. Leave this field blank to create a top-level (Level 1) category.

Save the Category

Click Save to confirm. The new category will now appear in the category tree and be available for product assignment.

Category Form Fields

string

required

The display name for the category. This appears throughout Odoo wherever categories are listed or selected.

relation

The category directly above this one in the hierarchy. Leaving this blank makes the category a top-level parent. Selecting a parent automatically places this category one level beneath it.

selection

Advanced setting. Assign replenishment routes such as MTO (Make to Order), Buy, or Manufacture at the category level. These routes are inherited by products within the category unless overridden at the product level.

relation

Advanced setting. Map the category to specific accounting journals and accounts for stock valuation. Used in conjunction with your company’s chart of accounts.

Category Tree View

After creating categories, the list view displays the full path for each entry, making it easy to verify your hierarchy at a glance.

Product Category
Products
Products / Hardware
Products / Hardware / Computers
Products / Hardware / Monitors
Products / Hardware / Accessories
Products / Services
Products / Consumables

Always build your hierarchy top-down. Create all Level 1 categories first, then add their children. This prevents broken parent references and keeps the tree organized from the start.

Force Removal Strategy

The Force Removal Strategy field controls the order in which stock is picked or removed from inventory for categories that require it. Setting this at the category level applies the strategy to all products in that category unless overridden at the product or lot level.

Strategy	Full Name	How It Works
FIFO	First In First Out	The oldest stock (earliest receipt date) is removed first. This is the recommended default for most businesses.
LIFO	Last In First Out	The newest stock (most recent receipt date) is removed first. Less common; may be restricted depending on your country’s accounting standards.
FEFO	First Expiry First Out	Stock closest to its expiration date is removed first. Recommended for perishable goods, pharmaceuticals, and food products.

FEFO requires expiration date tracking to be enabled on your products. Navigate to Inventory → Configuration → Settings and enable Expiration Dates under the Traceability section before using this strategy.

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Create and Manage Product Categories in Odoo Inventory

Category Structure

Setup Methods

Template Worksheets

Columns

Level 1 Example

Level 2 Example

Level 3 Example

Steps to Create a Category

Category Form Fields

Category Tree View

Force Removal Strategy

​Category Structure

​Setup Methods

​Template Worksheets

​Columns

​Level 1 Example

​Level 2 Example

​Level 3 Example

​Steps to Create a Category

​Category Form Fields

​Category Tree View

​Force Removal Strategy

Category Structure

Setup Methods

Template Worksheets

Columns

Level 1 Example

Level 2 Example

Level 3 Example

Steps to Create a Category

Category Form Fields

Category Tree View

Force Removal Strategy