At any given time, every company has fixed assets of all kinds. Whether it's vehicles, buildings, machines as tangible assets or computer licences as intangible assets, these can be easily managed and integrated into your accounts using Odoo. An article on this subject has already been published here., here.
However, for reasons of renewing equipment or otherwise, a company may wish to dispose of some of its (intangible) fixed assets. Disposing of them physically is one thing, but disposing of them from an accounting point of view is quite another. Let's look at the steps to follow to do this properly in Odoo.
First, go to the asset and click on "Change depreciation".
There are several options available to you when it comes to actions
- Disposal of the asset
This action allows you to dispose of one of your fixed assets as if you were eliminating it. To do this, you simply need to enter the date of the disposal and the loss account. An internal note can also be left to keep track of the reason for the disposal.
On disposal, two accounting entries are created.
The first closes depreciation for the period since the last accounting entry (pro rata temporis). This can be seen at the bottom of the screenshot below..
The second and final accounting entry (draft) closes the asset. As can be seen in the photo below, the entry balances the purchase value against the depreciation already taken and booked, with the difference between the two amounts being booked to the Loss of materials account, which was set up when the asset was sold..
- Sale of the asset
This action allows you to sell your fixed asset. To do this, you simply need to enter the date of the sale and the sales invoice that you have previously drawn up in your accounts. The invoice line will be selected automatically when the sales invoice is selected.
When a sale is made, two accounting entries are created.
The first closes depreciation for the period since the last accounting entry (pro rata temporis). This is visible at the very bottom of the screenshot below as the penultimate line.
The second and final accounting entry (draft) closes the asset. In the image above, this is the account entry in blue. Below is an overview of the contents of this entry.
Now you're ready to separate your fixed assets properly. So, isn't life great with Odoo?