Non-current assets and fixed assets¶

Non-current Assets, also known as long-term assets, are investments that are expected to be realized after one year. They are capitalized rather than being expensed and appear on the company’s balance sheet. Depending on their nature, they may undergo depreciation.

Fixed Assets are a type of Non-current Assets and include the properties bought for their productive aspects, such as buildings, vehicles, equipment, land, and software.

For example, let’s say we buy a car for $ 27,000. We plan to amortize it over five years, and we will sell it for $ 7,000 afterward. Using the linear, or straight-line, depreciation method, $ 4,000 are expensed each year as depreciation expenses. After five years, the Accumulated Depreciation amount reported on the balance sheet equals $ 20,000, leaving us with $ 7,000 of Not Depreciable Value, or Salvage value.

Assets are managed by the Odoo 18 Assets Management (om_account_asset) module. For each asset, Odoo computes a depreciation board and creates the depreciation entries periodically.

Odoo supports the following depreciation methods (Computation Method):

Linear: the depreciation amount is the gross value divided by the number of depreciations.
Degressive: the depreciation amount is the residual value multiplied by the Degressive Factor.

Note

The Hungarian localization (eYssen Hungarian Asset Localization, eyssen_l10n_hu_asset) adds a Accounting ‣ Fixed Assets menu and Hungarian-specific asset features; see Hungarian fixed assets.

Asset categories¶

Asset categories define how the assets are recorded and depreciated. To create one, go to Accounting ‣ Configuration ‣ Management ‣ Asset Category and click New. Fill in the following fields:

Asset Type: the name of the category (e.g., Computers).
Journal Entries section:
- Journal: the journal in which the depreciation entries are posted.
- Asset Account: the account used to record the purchase of the asset at its original price.
- Depreciation Entries: Asset Account: the account used in the depreciation entries to decrease the asset value (e.g., the accumulated depreciation account).
- Depreciation Entries: Expense Account: the account used in the periodical entries to record a part of the asset as an expense.
- Analytic Account / Analytic Distribution: the analytic distribution of the depreciation entries.
Periodicity section:
- Time Method Based On: Number of Entries (fixed number of depreciations and time between them) or Ending Date (time between depreciations and date after which no depreciation is computed).
- Number of Entries or Ending date.
- One Entry Every: the number of months between two depreciations.
Additional Options section:
- Auto-Confirm Assets: automatically confirms the assets created from vendor bills and posts their depreciation entries when they are generated. Otherwise, the depreciation entries are created as drafts.
- Group Journal Entries: groups the depreciation entries of all the assets of the category into one journal entry per period.
- Depreciation Dates: Based on Last Day of Purchase Period or Manual (Defaulted on Purchase Date).
Depreciation Method section: the Computation Method, the Degressive Factor, and the Prorata Temporis option.

screenshot: accounting-assets-category-form

menu: Accounting ‣ Configuration ‣ Management ‣ Asset Category ‣ New
shows: Asset category form "Computers": Journal "Miscellaneous Operations", the three accounts, Periodicity (Number of Entries: 36, One Entry Every: 1 month), Additional Options (Auto-Confirm Assets ticked), Depreciation Method "Linear".
highlight: The "Journal Entries" and "Periodicity" sections (red frames).
data: Demo company "YourCompany HU" with the Hungarian chart of accounts.
module: om_account_asset
notes: English UI, light theme, 1440px width.

What does “Prorata Temporis” mean?¶

The Prorata Temporis option indicates that the first depreciation entry of the asset is computed from the purchase date instead of the first day of the period. The first depreciation is then reduced proportionally to the number of days remaining in the period.

Note

The Prorata Temporis option is not available when the time method is based on an ending date.

Assets from vendor bills¶

Assets can be created automatically when a vendor bill is confirmed:

On the product form, in the Accounting tab, select an Asset Type (asset category). When the product is added to a vendor bill, the category is set on the bill line; or
On the vendor bill, select the Asset Category directly on the invoice line. The line’s account is replaced by the category’s Asset Account.

When the bill is confirmed, an asset is created for each line with an asset category, with the line’s untaxed amount (in the company currency) as Gross Value. If the category has the Auto-Confirm Assets option, the asset is confirmed immediately; otherwise, it is created in Draft status.

Note

A vendor bill with a confirmed (running) asset cannot be reset to draft.
If the bill is reset to draft or cancelled, its draft assets are archived.

screenshot: accounting-assets-bill-line

menu: Accounting ‣ Vendors ‣ Bills ‣ (open a draft bill)
shows: Draft vendor bill with one line for a laptop; the "Asset Category" column set to "Computers" and the account replaced by the asset account.
highlight: The "Asset Category" column (red frame).
data: Demo vendor; product "Laptop" (1,200,000 HUF); category "Computers".
module: om_account_asset
notes: English UI, light theme, 1440px width.

Create an asset manually¶

To create an asset manually, go to Accounting ‣ Configuration ‣ Management ‣ Assets and click New. Fill in:

Asset Name, Asset Category, Reference, and Date;
Depreciation Dates (and the First Depreciation Date for manual dates);
Gross Value: the purchase value of the asset;
Salvage Value: the value that is not depreciated;
Vendor and Invoice, if relevant.

The depreciation parameters are copied from the category and can be modified in the Depreciation Information tab.

Click Compute Depreciation to (re)compute the Depreciation Board, then click Confirm to start the depreciation. The asset status becomes Running.

screenshot: accounting-assets-asset-form

menu: Accounting ‣ Configuration ‣ Management ‣ Assets ‣ (open a running asset)
shows: Running asset "Laptop" with the buttons (Compute Depreciation, Sell or Dispose, Set to Draft, Modify Depreciation), the "Items" smart button, Gross Value, Salvage Value, Residual Value, and the "Depreciation Board" tab with the depreciation lines (Depreciation Date, Depreciation, Cumulative Depreciation, Residual) and their posting indicators.
highlight: The "Depreciation Board" tab (red frame).
data: Asset "Laptop", 1,200,000 HUF, 36 monthly depreciations, first three lines posted.
module: om_account_asset
notes: English UI, light theme, 1440px width.

Depreciation entries¶

The depreciation entries are created by a scheduled action once a month for all the running assets, for the depreciation lines whose date has passed.

To create them manually, go to Accounting ‣ Accounting ‣ Generate Entries ‣ Generate Assets Entries, select the Date until which the entries must be generated, and click Generate Entries. A single depreciation line can also be posted from the depreciation board.

The entries are posted automatically if the category has the Auto-Confirm Assets option; otherwise, they are created as drafts and must be posted manually. When the residual value of an asset reaches zero, the asset is closed.

Click the Items smart button of an asset to see its journal entries.

Modification of an asset¶

To change the depreciation duration of a running asset, click Modify Depreciation. In the Modify Asset window, enter the Reason, the new number of depreciations (or the new ending date) and the period length, then click Modify. The unposted depreciation lines are recomputed, and the change is logged in the chatter.

Disposal of fixed assets¶

To sell or dispose of an asset, open it and click Sell or Dispose. The unposted depreciation lines are removed and replaced by a single depreciation line of the residual value, dated today. The corresponding journal entry is created as a draft: review and post it. Once the residual value is zero, the asset is closed.

Tip

Record the sale itself with a customer invoice, as usual.

Assets analysis¶

To analyze your assets, go to Accounting ‣ Reporting ‣ Management ‣ Assets. The Assets Analysis report is available in pivot and graph views and can be filtered by status (e.g., Draft) and grouped by category or date.

screenshot: accounting-assets-analysis

menu: Accounting ‣ Reporting ‣ Management ‣ Assets
shows: "Assets Analysis" pivot view grouped by asset category, with the gross, depreciated and residual amounts.
data: Demo company "YourCompany HU" with several running assets.
module: om_account_asset
notes: English UI, light theme, 1440px width.