Assets Management in Odoo 16

Odoo asset management

What is asset management?

Asset management is the day-to-day running of a wealth portfolio. An investment manager usually heads it. The management of assets involves building a portfolio of investments. This includes assessing risks, finding opportunities, and developing an overarching strategy for reaching a set of financial objectives.

Now to manage these assets every individual needs an accountant which uses accounting software products to manage the financial value at the End of the year.

Similarly, in Odoo you can use the Asset management part in accounting to manage your assets, The asset model is a feature to manage the asset entries for an asset. The depreciation for the asset can be set for a particular duration. A single asset model can be used for creating multiple assets, Let’s see:

In accounting module -> configuration -> Management -> Asset model -> Create

In which you have several fields need to be mandatory filled like :

Method : Three methods of depreciation defined are

Straight Line
Declining
Declining then Straight Line

Choose any one of the methods of the depreciation suitable for your assets.

Duration : Define the duration till which period or time your product needs to be deprecated.

Computation : This feature computes from which day or period need to start up the depreciation of the particular asset, If checked then it starts from te purchase date.

Accounting

Under accounting, start with the selection of Company, then with the accounting entries,

Fixed Asset accounting : Account of the asset through which the asset was purchased in its original cost.
Depreciation Account : Account used for to record the depreciation entries.
Expense Account : Account used to measure the expense portion of an asset.
Journal : Journal entry of all the transaction.

If you have enabled analytical account you can mention them with the tag also, Your asset model is created,

Now You can go to the chart of account and assign the asset model to the asset account,

You can define automation asset

Along with define up the product category of all fixed assets in which you can define up your products, you need to mention as depreciable products and manage the depreciation account.

So now let’s see, when you make up a Purchase of a product and validate a bill based on your asset account,

How the product gets managed to be an asset product and automatically the chart is computed for the depreciation.

All the entries are now in draft state and once the entry is posted, status changes to post. In this case, at the top, a message is displayed “This move is configured to be posted automatically at the accounting date: MM/DD/YYY”. Thus, the journal entries are recorded in similar accounts on that particular accounting date. In the other info tab, you can see the checkbox ‘post automatically’ is ticked.

These posted entries will affect your profit loss account,

The asset can be ‘sell’ or ‘dispose’ at the end. If the action is ‘sell’, mention the customer invoice and Loss / Gain account.
For an action ‘Dispose’, mention the Loss/Gain account.