Asset management is a systematic process to organize, monitor, and sell the assets of an organization in a cost-effective way.

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Asset Management
Depreciation in Odoo 14

2. INTRODUCTION
❖ Asset management is a systematic process to organize, monitor, and sell the assets
of an organization in a cost-effective way.
❖ Odoo 14 also provides the feature of asset model and asset creation to manage the
assets in a company.
❖ For some assets as time goes the values decreases to manage these items odoo
have some special features.

3. ❖ To create a depreciable asset we first need an Asset Model, go to Accounting > Configuration
> Asset Models, Click on create button. You will get a form like the one below,
here you need to give a name, specify the accounts, method of depreciation.

4. ❖ Depreciation Method:
● Straight line: This will calculate the depreciation linearly, ie equally split for each year
● Degressive: For this type of depreciation, the actual amount will multiply with a
degressive factor(need to mention it in asset model), which is the depreciable amount.
● Accelerated Degressive: It is a combination of straight lines and degressive
depreciation. From the start, the depreciation is calculated by multiplying with a factor, as
the same as degressive and when it reaches the linear value, it will follow the straight-
line method.
❖ Prorata Temporis: This is a feature to determine from which date the depreciation needs
to calculate. If checked, the first date of the depreciation starts from the asset creation date
(Purchase date).

5. ❖ Now go to the chart of accounts and assign the asset model to the asset account, Accounting
Module > Configuration > Accounting > Chart of Accounts. Create an account or edit the
existing one with type Fixed Asset, Save it and click on SETUP button.

6. ❖ Here you need to make sure that the Automate Asset is in Create and Validate and in Asset
Model you need to select the respective asset model which is related to this.

7. ❖ Now create a bill, make sure that in Account you have chosen is the account which
is set for the asset model.

8. ❖ After saving it you can see an asset is being created click on it.
❖ After saving it you can see an asset is being created, opening that you will see the list of
Assets created under that bill.

9. ❖ Here it will be in running state, click on Reset to Draft.

10. ❖ Here you can add the salvage value in the field Non Depreciable Value if this asset is having
any. You can also change the depreciation method and click on the button Compute
Depreciation to recalculate the depreciation.

11. ❖ Below the page you can see the depreciation and the date which it will be posted, etc.
IF everything is set we change this back to running state.

12. ❖ After posting it we can see a button Posted Entries, there we can see all the entries including
the unposted.

13. ❖ We can see the list of all the entries the status, posting date, etc. Ones the posting date comes
the entities get posted automatically.

14. ❖ Inside each record we can see the Asset which it is related to and the journal entries of it.

15. ❖ For an asset we can sell the Sell or Dispose, Pause Depreciation, Modify Depreciation,
Save this Model.

16. ❖ Click on Pause Depreciation button, a popup like this will come. Here you need to specify the
Pause Date and click on Pause button.

17. ❖ When a depreciation is in hold we can see the status as ON HOLD, to resume the
depreciation, click on the button Resume Depreciation.

18. ❖ To modify the depreciation click on the Modify Depreciation button, Here you have to specify
the reason for modification, number of depreciation, depreciation amount, etc.

19. ❖ Click on the Sell or Dispose button to Sell the asset. Here before you mark it as sold, you need
to create a SO and invoice it and you need to specify the Customer invoice and Invoice Line
and also the Gain Account.

20. ❖ Click on the Sell or Dispose button to Dispose the asset. Here choose the action as
Dispose and select the Gain account.

21. ❖ To see the list of all Assets and its details go to Accounting > Accounting > Assets.

22. ❖ Its report can be seen in Profit and Loss report under Expenses > Depreciation.

23. For More
Details
Check our company website for related blogs and Odoo
book.
Odoo for Beginners - Odoo V14
Check our YouTube channel for functional and technical
videos in Odoo.
Assets Management Depreciation | Odoo 14 Accounting

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