How to create an Asset Model

Asset Models are basically Asset Categories. It determines which category an asset will fall under. It determines the account mappings and depreciation methods of an asset.

To create an Asset Model;

1.  Got to Accounting Module > Configuration > Asset Models



2. Click on  Create. 

* Asset Model Name - this will be the name of your Asset Model
 * Depreciation Method -There are three different depreciation methods enumerated and explained below:
           # Straight Line-If you select Straight Line as your depreciation method, you will be asked to provide the following details:
                * Duration - You will be asked to enter the duration in Months or in Years ( How many years or months do you need to depreciate this asset? If you want to calculate monthly depreciation, mention the duration in months)
          # Declining 
                * Declining Factor - In this area, you will need to enter the declining factor or percentage to be used in calculating depreciation for the declining/diminishing method.
                    Eg: If the useful life of years of an asset is 15 years, the diminishing factor will be 0.1333 ( 200/15=13.33%/100)
               * Duration - You will be asked to enter the duration in Months or in Years. ( How many years or months do you need to depreciate this asset? If you want to calculate monthly depreciation, mention the duration in months)
         # Declining then Straight line
               * This is Odoo will calculate depreciation using both methods and will post the depreciation based on the highest depreciation calculated. So the first few depreciation will be based on the declining value and then the starlight line
              * Settings will be the same as Declining Method 

 



Computation Methods 
 * No pro-rata - Regardless of the asset acquisition date depreciation will be calculated for the whole  ​ ​ ​year/ month
* Constant Periods - Depreciation is calculated based on months, and in a particular month, if you select  ​ ​the date, the system will calculate depreciation from the particular date of the selected  ​ ​ ​month.
* Based on days per period- the system will calculate depreciation based on days.  



# Accounting - This is where you will define the accounts mapping that will be used in the Journal entries created from this asset model.
 
* Company - The system will pick the company automatically
* Depreciation Account - This is where you will map the appropriate Accumulated Depreciation account.
* Expense Account - This is where you will map the appropriate Depreciation expense account.
* Journal - What specific journal will be used for the journal entries created from the transactions related  ​ ​to this Asset model? We will be using Miscellaneous operations 



4. Click on Save.

Now you have created a new Asset Model.   ​