How to Automate the Assets in Odoo
The ability of a corporation to expand and earn profits and value while also maintaining smooth operations is one of the many reasons why assets play such a significant role in the business world. It is essential to keep a record of assets since doing so will assist in the management of the assets owned by the organization.
The record of the assets provides the stakeholders with the ability to obtain specifics on the assets that are held by the firm and that are accessible for use in order to achieve the projected profit or returns. The appropriate management of assets allows for the identification and mitigation of risks that are associated with the utilization of such assets.
Using the data, it is simple to get awareness of any assets that have been lost or destroyed. That is why, in today’s tutorial, we will show you how to automate the assets in Odoo to enhance your asset management in general. So, let’s dive in!
Table of Contents:
- Reasons to Automate the Assets in Odoo
- How to Automate the Assets in Odoo
Reasons to Automate the Assets in Odoo
The process of managing assets is a sophisticated one that involves many different kinds of assets. In addition to this, it is necessary for the seamless management of assets to have the assistance of many departments and for there to be collaboration between the departments. Suppose we are going to use an ERP solution to manage our assets. In that case, we will definitely benefit from having a more effective system to keep track of those assets and determine their current location as well as their worth. The enterprise resource planning tool assists investors in ensuring that users of assets demonstrate accountability and assists managers in managing assets by ensuring that timely maintenance or repair work is performed.
Please don’t get us wrong; however, in this context, we are referring to the object assets or the solid assets. The system for managing maintenance here will also include asset management as one of its components. ERP support for asset management, especially the automation of assets, guarantees assistance for the implementation of centralized asset management. When an effective tracking system is in place, the departments are able to evaluate the usefulness of the asset and make forward-looking plans for the acquisition of new assets or the performance of maintenance tasks.
How to Automate the Assets in Odoo
Step 1: Filter the existing asset
Simply choose the Assets option inside the Odoo 15 Accounting module to begin managing the various assets that make up the organization. The specifics of the assets are included in the listing, such as the following:
- Asset Name is a field that specifies the name of the asset to which this record belongs.
- The date that the asset was purchased by the corporation is referred to as the “acquisition date.”
- Original Value is the amount that the item was initially purchased for when it was first valued.
- Method refers to the approach that was taken while determining how much the asset has depreciated.
- The date on which the asset was subjected to its initial calculation of depreciation is referred to as the “First Depreciation Date.”
- Book Worth is the value of an asset after taking into account any depreciation that has occurred.
- This is the asset’s value after it has been utilized, and it is referred to as the depreciable value.
- This is where the current status of the asset is indicated.
When you use the Filters, you will be able to view the assets that are either Current, Closed, or Archived. You have the ability to categorize the assets according to Date or Asset Model. Both the List view and the Kanban view are available for use while examining the assets of the firm.
Step 2: Create a new entry
All journal entries are instantly produced whenever a new asset is entered, and draft versions of these entries are always preserved. After then, every single one is uploaded one at a time at the right interval. To create a new asset, first, go to Accounting > Accounting > Assets, then click the Create button. After that, fill out the form that displays. This will result in a new entry being created.
Simply selecting the “choose similar purchases” option will do the trick for you when it comes to attaching an existing journal item to this new entry. After you have done that, some of the fields will be filled for you automatically, and the journal entry will now be shown under the tab called Related Purchase.
When you are completed, you may create all of the data on the Depreciation Board by clicking on the Compute Depreciation button, which is placed next to the Confirm button. This will be done when you hit the Confirm button. On this board, all of the entries that will be published by Odoo to depreciate your asset will be shown, along with the dates on which they will be posted.
Making use of the Prorata Temporis tool helps to guarantee that the depreciation of your assets is as accurate as it is possible for it to be at any given point in time. The first entry on the Depreciation Board is now computed based on the amount of time that remains between the Prorata Date and the First Depreciation Date rather than the standard amount of time that passes between depreciations. This replaces the standard amount of time that passes between depreciations, which was previously used. This new technique takes the place of the older approach, which was used to calculate the length of time that elapses between depreciations.
For example, the Depreciation Board that was discussed before has a first depreciation that totals $241.10 rather of the $4,000.00 that was originally stated. The final entry is also lower as a direct result of this, coming in at a total of $ 3,758.90 dollars. When utilizing the Straight Line Method to calculate depreciation, the initial Depreciable Value is divided by the entire number of depreciations that are planned in order to arrive at an answer. Each entry has the same total amount of depreciation, thus there is no difference between them.
When employing the Decreasing Depreciation Method, each item in the book has its Depreciable Value multiplied by the Decreasing Factor. This is done to calculate the overall depreciation. Each successive entry in the depreciation column has a lower total value than the one that came before it. The final item on the depreciation schedule does not make use of the decreasing factor; rather, it contains an amount that corresponds to the balance of the depreciable value and is calculated to equal zero by the time the length that was set has passed. This final item on the depreciation schedule is the only one that does not use the decreasing factor.
This Escaping is Falling-Away Although the Declining Method is employed in the Straight Line Depreciation Method, the Straight Line Method is used to calculate the minimal depreciation rather than the Declining Method. This is because the Straight Line Method is more accurate. If you choose to use this technique, you may be certain that there will be a precipitous decline in value right off the bat, followed by a gradual one after that.
Step 3: Create Assets models
The establishment of certain concepts that may be held by each asset is one of the ways that asset models contribute to the management of asset entry. You are able to apply these asset models to new assets that are coming into the company, which will cause the preset idea to be applied to the newly acquired asset. It is possible to construct many assets with just a single asset model.
If you go to the Configuration tab and choose the Asset Model option, you will be given the opportunity to inspect the asset model. The list of models, together with their Asset Names, the names of the Fixed Asset Account and the Depreciation Accounts, the Method of Depreciation, the Number of Depreciations, and the Period Length. The models may be classified into several categories according to whether they were created using a Fixed Account, Depreciation Account, Expense Account, or Journal.
By developing Asset Models, you may expedite the process of establishing entries for your assets in your database. It will be of particular benefit to you if you make consistent investments in the same categories of assets.
You may create a model by navigating to Accounting > Configuration > Assets Models, clicking on the Create button, and then fill out the form in the same way you would if you were creating a new entry. This will bring you to the model creation screen. After clicking this link, you will be sent to the page where you may create a model.
Tip: You may also save a validated Asset entry as a model by first accessing the item from the Accounting menu (Accounting > Accounting > Assets), and then saving the model by clicking the Save Model button. Alternatively, you can access the item directly from the Assets menu.
The following are some of the specifics that need to be included in the new asset model form:
- Enter the name of the model that will be utilized whenever new assets are being added to the system or created. This will be referred to as the Asset Model Name.
- Technique: Select a method from the available options in order to determine the amount of depreciation. You have three different options to choose from when computing depreciation using Odoo. The straight-line technique is followed by the descending and descending method, and finally, the straight-line method.
- Depreciation takes a certain amount of time, which is measured in terms of its “duration.” When computing depreciation, it is important to specify whether years or months are used as the unit of measurement.
- Enable the option that allows you to set the start date for the first period’s computation when using Prorata Temporis.
- Enter the account that was used to record the acquisition of the item at its initial price. This is the account that is referred to as the “fixed asset account.”
- Now, you need to add the account that is used to enter depreciations, which will result in a fall in the value of the asset. This is referred to as the “depreciation account.”
- Enter the account that was used to record a portion of the assets as an expense under the “Expense Account” heading.
- Diary: Include the appropriate journal that will be utilized to make the entries and record them.
Step 4: Automate the Assets
When you establish or amend an account whose type is either Non-current Assets or Fixed Assets, you have the option of configuring it to automatically produce assets for the costs that are credited to it. This may be done manually or automatically.
In the area labeled “Automate Assets,” you have the following options:
The answer is “no,” and this is the value that is used by default. There are no events that take place.
Produced in draft form: Whenever a transaction is submitted to the account, a draft entry for the assets is created; however, this entry is not verified. To begin, you will need to fill out the form that can be found in the Accounting > Accounting > Assets menu.
You not only need to create and verify, but you must also choose an Asset Model (see: Assets Models). When a transaction is submitted to the account, an Assets record is produced and promptly verified. This happens every time.
We hope this tutorial will help you understand how to automate the Assets in Odoo. When it comes to a corporation, the category of fixed assets makes up the majority of the total assets that are held. A corporation’s fixed assets include everything from the structure in which the company is physically located to the laptops utilized by its executives and managers.
We are able to make the generalization that any machine, electrical, or plumbing installation. That implies that any property or equipment that is owned by the corporation, regardless of whether it is moveable or immovable, is considered to be a fixed asset. The management of our fixed assets is quite essential since we need to use them for a more extended amount of time and then either get rid of them or sell off the production.
We will need to keep track of such assets and determine their worth as it relates to a specific time period. As the useful life of a fixed asset reduces, the value of the item will typically fall over the course of a year. When a situation like this arises, we do maintenance on the asset in order to prolong its useful life. If the asset is no longer helpful to the company, we will need to decide whether to demolish and scrap it or sell it off.
not your workload
Simple, powerful tools to grow your business. Easy to use, quick to master and all at an affordable price.Get Started