Master Odoo18 Asset Management

Proper control of business resources is essential for smooth and profitable functioning with new features in Odoo 18, the Odoo Asset Management module has become even more efficient and automated. In Odoo, asset management leads to a model that properly offers several aspects of business needs such as depreciation schedules, accounting entries, and tracking of assets which are properly associated with the business processes. In this blog, we’ll guide you through the process of setting up and managing asset management in odoo18

Simplified Asset Management Guide for Odoo18 New Businesses

Here is a step-by-step guide to asset management in Odoo18 for new business users. Begin by accessing the Accounting module in Odoo 18 and navigating to the Configuration menu at the top of the page under the Management section, you’ll find the Asset Models option this is where you can set up and configure the asset models tailored to your business you can create new asset models by clicking the Create button, allowing you to define parameters like asset categories, depreciation methods, and accounting entries that will automatically be generated when assets are acquired automation options like automatic depreciation and journal entries are available, ensuring that routine tasks are handled without manual intervention

Once your asset models are in place, you can start managing your assets directly in the system, with all related processes automated and tracked Odoo also provides reporting tools to help you monitor asset performance, ensuring efficient management and decision-making.

Asset Models

Asset models are used as templates for working with assets in Odoo. The green rectangle area in the figure represents the specific information of the Asset models, such as the definition of the Asset Model Name, which is to give the name to the particular asset model. Under the Depreciation Method section, you can choose from the following options: the Straight-Line method, the Declining Balance method, and the Declining Balance transitioning to the Straight-Line method. Also, depending on the business requirements and the specification of the duration of the depreciation of the assets you could set the number of months or years for the account and this facility enables the reorganization of asset management in Odoo18 to agree with the kind of assets and the procedure of depreciation.

Also, you can select depreciation computation Within this option you have No Prorata, Constant Period, Based on Days per Period within which you have to specify how you want depreciation to be calculated. Once you have decided on the depreciation method, you can then choose other accounting features that relate to the company for the particular asset and specification of accounts. What is more, one should indicate a depreciation account and an expense account, which are placed in the Miscellaneous Operation line. These settings make sure that all the account entries for depreciation of assets are captured correctly regarding your accounting workflow.

Depreciation Account in Odoo18

The depreciation account remains usually the fixed account as it periodically provides the value of depreciable assets over the timeline. This enables the company to manage its long-term assets well. Depreciation is the reduction of the value of an asset throughout its usefulness; the amount of depreciation is charged as an expense and this cost is recorded in the expense account during its useful life so that the resulting loss incurred via the depreciation of assets is properly recorded in the company’s accounts.

This process has a cumulative effect, where each period’s depreciation reduces the asset’s book value, which is tracked in the cumulative depreciation amount. Over time, this adjustment lowers the asset’s net book value on the balance sheet, reflecting its true market worth as it continues to be used or as it depreciates.

Automating Depreciation Account Setup in Odoo18

When setting up the depreciation account, you also can control its automation on the Automation tab which makes it possible to improve the approach to creation and validation of assets. Under the automation options you can choose to create in draft, which will make the asset to be created in the draft status. Also, you can select Create a Bill and Validate. If the option Create in Draft is chosen, then the asset creation will go in the Draft mode and all subsequent automation will happen from there. In the case of Select/Confirm Create and Validate, the asset will go into a running state and will be created and validated whenever the bill is confirmed or validated.

There’s a field called Manage Items. When this field is checked and you have multiple assets linked to a single item, each asset will be treated separately. This is particularly useful when managing assets with multiple items, ensuring each one is accounted for individually.

While setting up asset automation, you will need to select the right Asset Model. From the Accounting tab, choose the asset, and proceed to the Vendor Bill by filling out the vendor details. It is mandatory to set the Bill Date choose the product, such as a laptop, and assign it to the Fixed Asset Account. Once these details are filled out, the asset is created and properly recorded in the system.

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