Asset Management in Odoo16

The service of managing a company's finances is known as Asset Management. Generally, this helps determine a company's financial objectives and then utilising portfolio management the acquisition and administration of stocks, bonds, and funds - to work towards achieving thoseobjectives.Asset management is a systematic procedure for creating, using, upgrading, and disposing of assets in the most economical way possible while taking into account all expenses,risks,and performance characteristics.

In Odoo v16, we can manage Asset management. Intially, it starts with the planning stages when the need for an asset is identified, and continues all the way through its useful life and eventual disposal. It is the process of gradually building up overall wealth through the purchase, servicing, and trading of investments with the potential for appreciation. Odoo 16 Accounting module provides Asset and Asset model management for our organisation. We can set set depreciation for a particular period of time.
From the Accounting configuration, we can configure Asset models

It list all the existing Assets models. 

Creation of Asset Model :

Asset Models can create by clicking on the CREATE icon and add asset model name. Users can select the Depreciation method, durations and compuatation period from Depreciation method figure.
 

Depreciation method are of 3 types;

1. Straight Line – this method calculate deprecitian in linear manner and splits the amounts equally to each other
 

2. Declining – there is a declining factor, actual amount is multipied with this factor in a decreasing manner
 

3. Declining then Straight Line – it i s a combination of both straight and declining method. Intially, multiplied with declining factor and when it reaches linear value, it follow straight line method

If we choose Declining method, users need to provide the declining factor percentage and depreciation works based on that. Users can decide the depreciation calculation date from computation period like No Pro rata, Constant periods, Based on days per period. 
In the Accounting section, user can select,

Fixed Asset account to record the actual cost of purchasing assets.

Depreciation Account employs depreciation entries to reduce asset value

Then, choose the Expense Account used in periodical entries and map the Journal and save the Asset Model. 

 

Redirect to Fixed Asset Account Master - the type should be in fixed asset or in non-current assets. 

On the Automation tab, can set the Asset Automation as No, Create in Draft or Create and validate. Asset model is mandatory for Create in Draft or Create and validate.

Next, let’s create a new vendor bill for your asset model. Map the Fixed asset account in product detail section of bill and confirm it. 

We can see the Assets smart button after validating the bill and click on it,

The Asset Master record will be in Running stage. In the Asset Master, it shows the Asset values including original amount, Acquisition date and the current values also. The depreciated amount at import can view at bottom side.
In the Depreciation board, we can see the Asset Depreciation Date, Depreciation, Cumulative Depreciation and Depreciable value

In the Bill tab of Asset master, which shows the actual bill details of that related assets.

We can modify the depreciation by clicking on Modify Depreciation button. User can do different actions like Dispose, Sell, Re-evaluate & Pause the Asset Depreciation.
On Disposing, mention the date, Loss account and reason, 

On Selling the Asset, we need to select the date, Customer Invoice and loss account, 

For the Re-evaluation of Asset, user has the option to add the details like Date, Depreciated Amount, Not Depreciated Amount, Gross Increase Amount and need to map the Depreciation and Expense Account

Also, an option is there for Pause the Asset. 

In the Journal Entries smart box, it lists all the records created automatically based on the Asset depreciation duration.

In the detailed record section, we can see the record posting date automatically and credit and debit lines.

It is simpler to create Asset model for our organisation by using Odoo v 16 Accounting module and its helps in managing the depreciation value and accounting operations correctly.