Managing your Assets

1. Managing your Assets Easily manage your assets with OpenERP. This module is fully integrated with the financial and analytic accounting modules for a maximum of power. Manage the assets owned by your company and keep track of depreciation occurred on those assets. Of course, the system also allows you to create accounting moves of the depreciation lines. http://openerp-doc.readthedocs.org/en/latest/2/assets/

2. Asset Management in OpenERP allows you to: Have different depreciation methods, Compute the depreciation according to the time period and the depreciation method specified, Keep track of all accounting entries based on the value, Have a fully integrated system with the financial and analytic accounting modules, Track changes on assets from any document in OpenERP. http://openerp-doc.readthedocs.org/en/latest/2/assets/

3. Asset Management Module Store all information related to your assets. How much will be depreciated, what will be the depreciation amount based on the selected depreciation method. What is the date on which the asset is purchased, the purchase value of the asset, the supplier of the asset, etc.  http://openerp-doc.readthedocs.org/en/latest/2/assets/

4. You can also see different states of assets. If the asset is confirmed, the depreciation lines may be posted in the accounting system. An asset can be closed manually when depreciation is over or it will be closed automatically when the last depreciation line is posted. http://openerp-doc.readthedocs.org/en/latest/2/assets/

5. Depreciation Methods The linear, or straight-line depreciation Straight-line depreciation is the simplest and most-often-used technique, in which the company estimates the salvage value of the asset at the end of the period during which it will be used to generate revenues (useful life) and will expense a portion of original cost in equal increments over that period. http://openerp-doc.readthedocs.org/en/latest/2/assets/

6. The salvage value is an estimate of the value of the asset at the time it will be sold or disposed of; it may be zero or even negative. Salvage value is also known as scrap value or residual value. Straight-line method: (Annual Depreciation Expense = Cost of Fixed Asset - Residual Value) / Useful Life of Asset (years) http://openerp-doc.readthedocs.org/en/latest/2/assets/

7. For example, a vehicle that depreciates over 5 years, is purchased at a cost of € 17,000, and will have a salvage value of € 2000, will depreciate at € 3,000 per year: (€ 17,000 - € 2,000) / 5 years = € 3,000 annual straight-line depreciation expense. In other words, it is the depreciable cost of the asset divided by the number of years of its useful life. http://openerp-doc.readthedocs.org/en/latest/2/assets/

8. Asset Categories You can configure the following information: Name: A name for the asset category, e.g. machinery, office equipment, vehicles. Journal: A journal to store the accounting entries, typically a miscellaneous journal. Depreciation Account: Account, can be the same as the Asset Account or it can be different for storing depreciation separately.  http://openerp-doc.readthedocs.org/en/latest/2/assets/

9. Depr. Expense Account: Expense account which will be debited when the depreciation line is posted Time Method: this method determines how the dates and the number of depreciations will be computed. http://openerp-doc.readthedocs.org/en/latest/2/assets/

10. Registering Assets Asset: A name for the asset. Asset Category: Select a category for the asset to determine the depreciation method. Reference: optional field to specify an extra reference for the asset, e.g. the license plate of a car. When the asset is created from a purchase invoice, by default this field will contain the invoice number. Gross Value: Gross purchase amount of the asset (including any non-reclaimable VAT). Salvage Value: the remaining value of an asset after it has been fully depreciated (also called remaining value). Residual Value: the actual amount left to be depreciated (by default the gross value - the salvage value, but updated according to depreciations posted). http://openerp-doc.readthedocs.org/en/latest/2/assets/

11. Registering Assets Parent Asset: this box allows you to relate one asset to another one, e.g. if you buy a car kit for a car that is already an asset in your company. Purchase Date: Date on which the asset has been purchased. Partner: Supplier of the asset. http://openerp-doc.readthedocs.org/en/latest/2/assets/