How To Create Asset Models in Odoo
Asset management refers to the act of keeping track of, arranging, and selling a company’s many assets. A corporation has lately made investments in machinery, automobiles, computers, and other equipment, and they are considered fixed assets since we intend to utilize them for a number of years in the future. The value of assets, on the other hand, drops dramatically as more time passes.
When trying to determine if a company has made a profit or a loss, it is helpful to do an analysis of the company’s assets and consider the most recent working circumstances. It is necessary for a company to manage its diverse assets, which might be difficult in some circumstances. The Accounting module of Odoo offers asset model management for your firm and makes it simple to schedule depreciation over a certain time period.
With the assistance of the Odoo Accounting module, users are able to construct a variety of asset models for their company. That is why, in today’s tutorial, we will show you how to create asset models in Odoo. So, let’s dive in!
Table of Contents:
- Reasons to create Asset Models in Odoo
- How to create Asset Models in Odoo
Reasons to create Asset Models in Odoo
Do you have any idea what the current situation is with the fixed assets of your company? This is an excellent topic to ask because every item possesses its own unique worth. In monetary terms, managing the depreciation of assets helps to balance the costs of investment possibilities against the potential rewards of such opportunities. It is very necessary to carry out this computation. Imagine for a moment that such functionality is accessible via the balance sheet. In this scenario, it will be helpful better to keep track of the asset’s residual value and, if required, to make an educated decision about whether or not to acquire a new investment.
This feature is made available by the “Accounting” module of the Odoo ERP system. All of this occurs automatically and is shown on the balance sheet when a new asset is established. Depreciation is written off each year at the conclusion of the fiscal year. In the next section, we will examine a specific example, complete with graphics, of how it may be arranged in the Odoo ERP system.
How to create Asset Models in Odoo
From within the Configuration feature of the Odoo 15 Accounting module, we have the ability to configure asset models. Determining the rate of an asset’s value decline in a given circumstance is not difficult at all. Take, as an illustration, the scenario in which you purchase a computer with a total price of $1,200.
Later on, you make the decision to depreciate it over a period of three years, and you determine that the salvage value of a broken computer will be $300 after three years have passed. Therefore, the computer is expected to have a worth of $900 at the conclusion of the lease term (residual value). After we have appropriately configured the parameters, Odoo will automatically record all of the depreciation information for us.
Step 1: Adjust the basic configuration
Select the Asset Models option from the drop-down list located in the Management section of the Configuration tab. The Asset Models pane displays your company’s complete collection of finished asset models for viewing. Details like Asset Name, Method, Period Length, Fixed Asset Amount, and Number of Depreciations are included in it.
To create a new Asset model called “Computers 3 Years,” choose the CREATE icon from the toolbar. On the new page, enter the Asset Model Name as “Computer 3 Years.” Now that we have it figured out, let’s look over depreciation techniques for your assets. Users have the option to pick a method to calculate the amount of the depreciation line. Decreasing, straight line, and declining then straight line are the three distinct approaches to depreciation.
Step 2: Use Straight Line
With the use of a Straight Line approach, we will be able to determine depreciation in a linear fashion. The formula for calculating it is the total gross value of the asset divided by the total number of times it has been used. For this particular model of depreciation, the graph appears to be a straight line.
Step 3: Select Declining option
After choosing Declining as the Method, users are given the option to pick a Declining Factor. The calculation is accomplished by multiplying the value of the residual by the decreasing factor. This process is continued up to the point when an asset has fully depreciated in value.
Step 4: Select Declining, then Straight Line option
When we choose Decreasing then Straight Line as the Method, we get a mix of straight-line and declining depreciation. When using the Declining then Straight Line approach, the number that represents the lowest possible depreciation is equivalent to the value that represents the straight line. As seen in the screenshot that follows, one of the depreciation methods that may be selected for the asset model Computers 3 Years is the Straight Line technique.
Within the Prorata Temporis box, you have the ability to choose the date that will be used to calculate depreciation.
After that, you will need to take care of the accounting portion of your asset model. Choose your company and the Fixed Asset Account that you use to keep track of the purchase price of assets as the actual value of those assets. The Depreciation Account is used in depreciation entries so that the value of the asset may be decreased. Pick the option in the drop-down menu labeled “Computer Amortization” for the Depreciation Amount, and select “100100 Computers” for the Fixed Asset Amount. Both of these options are currently present in the database.
Following that, choose the Expense Account that will be used in periodic entries as well as the Journal. Additionally, you have the option of including an Analytic tag and accounting for your asset model. To create your asset model named “Computer 3 Years,” as seen in the example that follows, choose the SAVE icon.
Now, let’s take a look at the window for the Chart of Accounts. As seen in the picture that follows, choose the Chart of Accounts option from the Configuration tab.
If you have a code and click on the SETUP icon at the right end of this page, you will be able to examine the Computers category of your fixed assets. On the new page, choose the Automation tab, and make sure the Create and Validate checkboxes are selected for Automate Asset. After that, choose ‘Computers 3 Years’ as your asset model and then click the SAVE button, as seen in the picture that follows.
Let’s move on to the next step, which is to create a fresh vendor bill for your asset model. If you go to the Vendors page and choose the Bills menu, you can see a list of all the bills that have been made in this section, as seen in the picture below.
The data, including the Number of Bills, the Bill Date, the Total, and the Status, are shown in the List view of the Bills window. After you choose the CREATE symbol to draft a new piece of legislation, a new page will appear before you. After choosing your Vendor, go to the Invoice Lines page and choose the Add a line option. The label should be entered as “Odoo Laptop,” and the account should be set to “100100 Computers,” as seen in the picture below. The price should be entered as “Odoo Laptop.”
After that, choose the SAVE icon, and then, after a while, click the CONFIRM button, as seen in the image below.
After authenticating your bill, we will be able to see the Assets smart button, as shown in the following image.
On the next page, as seen in the screenshot that can be found below, choose the Asset Odoo Laptop link to proceed.
The entries will be generated automatically by Odoo, and after they have been generated, we may see them on the following page.
At the very top of the website, we can see various options. Users are able to edit a description by selecting the icon labeled MODIFY DESCRIPTION, which is displayed in the picture that follows.
In the area labeled Reason, located below the Modification section of the Modify Asset window, provide the reason why the asset was modified. Within the New Values section, both the Number of Depreciation and the Depreciable amounts are immediately made available to the user. You have the ability to include a newly calculated salvage value for an item inside a Not Depreciable Amount. As seen in the picture that follows, we are going to increase the value of an asset by three hundred rupees at this point.
When you have finished adding the Not Depreciable Amount, all of the fields inside Increase Accounts will immediately become accessible to you. When you are ready to make modifications to the deprecation, later on, pick the MODIFY icon. In the Bills pane, where the modifications are made visible to us, as seen in the screenshot that follows, depreciation items are being changed.
As seen in the screenshot that is shown above, the depreciation dates may be altered inside the Depreciation Board page, and the amount of depreciation that was applied can also be viewed within this section. With the assistance of the Odoo Accounting module, constructing an asset model for a business is a simple and straightforward process. Users of Odoo have access to a variety of procedures that allow them to manage the depreciation values of assets. All of this help contribute to the correct maintenance of accounting operations in a company.
We hope this tutorial will help you understand how to create asset models in Odoo. Different from some other apps, managing assets in Odoo is more intuitive than it is in those other programs. One of the reasons for this is that we face a wide variety of circumstances in which some of the assets, but not all of them, are necessary.
For instance, the requirements of the web client, the app for the point of sale, the website, and even the mobile application are distinct from one another. In addition, certain assets could be substantial yet be used only infrequently; if this is the case, we may load them slowly (on demand).
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