Asset management and depreciation

Asset management refers to the purchase of assets. Define those assets by the correct class or category to compute their life and depreciation. In some countries, the life and rate of depreciation are dependent on the asset category. At the end of life, the asset can either be scrapped or resold to get the money out of it.

Odoo has an Asset Management feature built into the accounting system that allows us to define the category of an asset, classify assets to compute the depreciation using different methods, and create an accounting entry for the depreciation at the end of every financial year. The impact of the resale or scrapping of an asset is reflected in the accounting system.

Let's manage the asset and compute the depreciation using the Odoo Asset Management feature.

How to do it...

1. The Asset Management feature can be activated by going to Configuration | Settings in the Accounting application. Search for Asset management, select it, and click on APPLY...