A Step-By-Step Guide To Odoo Asset Management For Starters

Asset management is the process of tracking a company's assets from acquisition to disposal, including depreciation computations. Odoo asset management features simplify this process by providing you with efficient tools for tracking, managing, and depreciating long-term business assets.

What does Odoo bring to the table for asset management? Let’s discover below.

Introducing Odoo Asset Management

1. What Is Asset Management In Odoo?

Odoo asset management is a core feature within the Odoo Accounting module. This feature helps companies record asset value over time effectively by tracking assets, calculating depreciation, and creating accounting input. These assets could be anything from houses and vehicles to machinery and equipment.

2. What Are Key Odoo Asset Management Functionalities?

To simplify tracking and managing a company's assets, the asset management feature in Odoo Accounting provides essential tools for users. It helps you optimise asset usage, improve financial efficiency, and streamline compliance with asset creation, categorisation, depreciation computation, or disposal.

• Asset creation and categorisation: Establish distinct asset types (such as machinery and cars) and keep accurate records of each, including the item's cost, description, and acquisition date
• Depreciation calculation: Provide automated depreciation entries based on the asset's value and useful life with techniques such as straight-line, declining balance, etc.
• Asset tracking: Keep track of all asset data, such as location, status, and maintenance activity.
• Asset disposal: Handle the selling or disposal of assets, generating required financial entries and computing any profits or losses.
• Customisable integration: Allow users to customise workflows and have a complete view of asset value. It can be integrated with other Odoo modules such as Odoo Inventory, Maintenance, or Project for streamlined asset management processes.
• Asset models: Automate the creation process by generating templates for recurring asset categories.
• Analytical distribution: Maintain accurate spending by assigning depreciation costs to particular analytical accounts.

Read more: Odoo for Retail - Why Is It a Great Fit for Your Store? (+ Solutions Package)

How to Configure Asset Management In Odoo

1. Configure asset models

Step 1: Go to Odoo Accounting > Configuration > Asset Models

The asset you purchased will be assigned with the relevant Odoo asset model. In the list of models, you will see the asset name, fixed account, depreciation account, method, number of depreciations, and period length.

Step 2: Create a New asset model

When setting up an asset model, you need to specify its name, depreciation duration, method (i.e. declining, straight-line, or combination), and accounting information. This involves setting up the accounts for spending, depreciation, and asset purchases. You also need to decide how depreciation is computed over time (i.e. evenly spread or based on specific periods).

Step 3: In Odoo Accounting, go to Configuration > Charts of Accounts

Step 4: Choose the account you created in the asset model > View

Step 5: Go to the Automation tab > Select Create and validate to link a model to the asset.

2. Record assets

Step 1: In Odoo Accounting, go to Vendor > Bills

Step 2: Generate a vendor bill and select the corresponding asset model for the account

Step 3: When you validate the bill, an Asset button shows up > click on the Asset button

You can now view the corresponding Odoo asset that was recorded earlier.

3. Asset depreciation

Step 4: From the Asset information of the vendor bill, go to the Depreciation Board

You can see that future depreciations are shown on this board.

Step 5: Click on Modify Depreciation > fill in the required depreciation information

• From here you can select one of the following actions: dispose, sell, or reevaluate, you can change them. Every action needs specific data, such as the date of disposal, the sale invoice, or the new depreciation values.
• Dispose: Exclude the asset by recording the loss account and disposal date.
• Sell: Create a closing journal item by connecting a customer invoice and specifying the invoice line that corresponds to the asset.
• Reevaluate: Enter new residual and salvage amounts to update the asset's value. Connected accounts are automatically calculated by the system.

You can check posted journal entries by clicking on Posted Entries, or save the asset as an asset model by Saving the asset as a model or Cancelling it.

Overall, with Odoo Asset Management, you can establish, monitor and depreciate assets. Under the Accounting tab, go to Assets to check your existing assets and add new ones with aspects such as name, acquisition date, original value, and depreciation method. Odoo also lets you connect the relevant invoices and validate the asset to initiate depreciation, keep tabs on depreciation schedules and alter them as needed.

Let’s Start With Odoo

Effective financial management starts with a solid understanding of Odoo asset management. We hope that this step-by-step guide has set a strong foundation for configuring assets, computing out depreciation, and monitoring asset value.

Keep in mind that Odoo is highly flexible and scalable, making it a customisable option to meet your unique business requirements Schedule a consultation and explore how our custom Odoo solutions can help with your asset management workflows.

Read more: Odoo For Beginners - Features, Pricing, Core Modules, & Implementation Practice

Odoo Asset Management - Frequently Asked Questions

1. How do I configure asset depreciation methods in Odoo?

You need to install and access the Odoo Accounting module to configure depreciation methods. For any asset, you can establish a depreciation model by indicating the initial value, acquisition date, non-depreciable value, linked accounts, and the technique (straight line, decreasing, or a mix). After that, Odoo will compute and present the depreciation schedule.

2. Can I link purchase invoices to assets in Odoo?

Yes. In Odoo, purchase invoices can be linked to particular assets. This makes it easier to keep track of the asset's acquisition cost and establishes a direct link between the asset's depreciation and the invoice.

3. Can Odoo handle assets with prior depreciation?

Odoo can manage assets that have gone through depreciation. Odoo accurately calculates future depreciation based on the selected method by entering the initial cost, purchase date, and accumulated depreciation. Its flexibility makes it feasible to switch from earlier accounting systems with ease.