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Asset management in odoo

Assets are resources owned by any entity that has economic value and can be converted to cash. Assets can either be tangible or non-tangible. Tangible assets are divided into current and fixed assets. These assets will be affected by depreciation during their period of life. For example, The value of a car bought 5 years ago keeps on decreasing with time due to wear and tear. Current assets can be cash, inventory, accounts receivable, and so on while fixed assets are land, building, and so on.

We can see how Odoo enables users to manage their assets. Creating an asset in Odoo is not a big deal. Before that, we can create asset models to assign these models to the assets we create. Assets can thus be categorized based on these models.

Let’s see how we can use asset management in Odoo accounts.

Go to Accounting module > Configuration menu > Asset Models under the Management section

Specify the depreciation method, the time period during which depreciation takes place, the duration of depreciation, depreciation, and expense accounts, and the journal for that particular asset model.

Now that we have created an Asset model for furniture. Suppose, we want to create a new account as the depreciation account for furniture. Just start typing the name of the account in the depreciation account field and it can be easily created by going to the page of the new account where the user has to give a unique code for the account, specify the account type as non-current assets, select deprecated option and so on.

Let’s create a new asset by going to the Accounting menu> Assets under the Management section.

>> Original value: Enter the original value of the asset.

>> Acquisition date: Enter the date on which that asset is acquired.

>> Depreciation: There are three methods of depreciation in Odoo.

1. Straight: A fixed amount of value is depreciated over the period of depreciation.

2. Declining: A fixed percentage of the current value is depreciated during each period.

3. Declining then straight: It is similar to that of the declining method but a minimum value of depreciation is specified. If the depreciation value of a period is less than that of the minimum depreciation value, the minimum depreciation value is automatically depreciated during that period.

>> Duration: Specify the number of years or months over which depreciation is to be computed for that asset.

>> Declining Factor: Specify the percentage of depreciation in the current value of an asset.

>> Computation: The user can compute depreciation not constantly or in constant periods or based on days per period.

>> Prorata Date: It is the date on which the depreciation for that period is computed.

>> Not Depreciable Value: The user can specify the value of an asset that is not subject to any depreciation.

>> Asset model: Select an asset model so that accounts and journal related to that model is automatically updated for that asset.

Confirm the Asset and click on Compute depreciation option. A new Depreciation Board tab will be visible between the Asset and Bills tab. Select the Depreciation Board tab to view the computed depreciation value during each period.

Here above you can able see the depreciation of the office table for the next 5 years.

odoo as a QuickBooks Alternative