Odoo 18 Enterprise Book: Accounting

16. Assets

In Odoo 18 Accounting, asset management has been streamlined to ensure efficient tracking and control over long-term assets. The platform provides a comprehensive structure for handling fixed assets; those that contribute to business operations over a longer duration but depreciate in value over time.

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To begin with, users can configure Asset Models via the Configuration menu. These models act as templates that define the asset’s depreciation method, duration, accounts, and related journal entries.

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Each asset model includes fields like the Asset Model Name, Fixed Asset Account, Depreciation Account, Depreciation Method, Number of Depreciations, and Period Length.

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Odoo 18 continues to support the three familiar depreciation methods: Straight Line, Declining, and Declining then Straight Line. The Straight Line method evenly spreads the asset’s value across its useful life. In contrast, the Declining method applies a consistent depreciation factor to the remaining book value, resulting in higher depreciation in the earlier years. The hybrid Declining then Straight Line method begins with the declining approach and shifts to straight-line once it becomes more efficient.

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The system also allows you to set depreciation frequency and whether the method should follow constant periods, no pro-rata, or vary based on actual days. Account settings include the Fixed Asset Account for the original purchase, a Depreciation Account for reducing the asset value, and an Expense Account to post periodic depreciation. A specific Journal can be assigned for all accounting entries related to this model.

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Automating asset creation is made easy through the Chart of Accounts.

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You can select an account and configure it to automatically create and validate assets when vendor bills are posted.

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Assigning an Asset Model to the selected account enables automatic asset generation during bill validation. Once a vendor bill is posted using this account, Odoo 18 activates the Asset smart button on the bill.

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Clicking this reveals the corresponding asset record.

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Each asset record includes detailed tabs such as the Depreciation Board, where you can view scheduled depreciation entries. The Modify Depreciation button opens a window where you can manage asset lifecycle events; like disposal, reevaluation, or pausing depreciation.

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For disposals, you can input the disposal date, a Loss Account, and related invoice information if the asset is being sold.

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If the action is to reevaluate, the user can update the depreciable and non-depreciable values, along with related accounts such as the Gross Increase Account and Expense Account.

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Pausing depreciation temporarily halts the calculation and updates the Depreciation Board accordingly.

Odoo 18 also allows users to manage assets manually through the Accounting menu.

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This overview lists all assets with relevant details like name, acquisition date, original value, depreciation method, book value, and current status. You can click the New button to create a new asset manually.

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The asset setup window includes fields such as Asset Name, Acquisition Date, Original Value, and links to a predefined Asset Model. The model will auto-fill the depreciation method and associated accounts.

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You can specify any portion of the value that should not be depreciated, and manually enter the depreciated amount if migrating from a different system.

Bills associated with the asset can be recorded under the Bills tab.

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Once confirmed, the asset status changes to Running, and the system begins computing depreciation.

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As with automated entries, users can modify the asset later using the Modify button to reevaluate, pause, sell, or dispose of it.

With Odoo 18, asset management becomes more intuitive and robust, allowing businesses to maintain clear financial oversight of long-term assets while automating key accounting operations.

16.1 Depreciation Schedule

In Odoo 18 Accounting, users can quickly review an asset’s entire depreciation history by opening the Depreciation Schedule found under the Reporting tab.

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This report lists every depreciation posting associated with each fixed asset, showing the posting date, journal entry, amount, residual value, and book value after each calculation. Because the schedule refreshes automatically whenever a new depreciation line is posted; whether generated by the system’s scheduler, triggered manually, or created through a modification such as a re-evaluation or disposal, finance teams always have an up‑to‑date view of how every depreciation entry affects the asset’s carrying value and the company’s financial statements.

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