We introduce the class of partially invertible modules and show that it is an inverse category which we call the Picard inverse category. We use this category to generalize the classical construction of crossed products to, what we call, generalized epsilon-crossed products and show that these coincide with the class of epsilon-strongly groupoid-graded rings. We then use generalized epsilon-crossed groupoid products to obtain a generalization, from the group-graded situation to the groupoid-graded case, of the bijection from a certain second cohomology group, defined by the grading and the functor from the groupoid in question to the Picard inverse category, to the collection of equivalence classes of rings epsilon-strongly graded by the groupoid.