How to Automate Asset Tracking with Asset Models in Odoo 19
The new Odoo 19 Accounting module makes it simple to automate asset creation and confirmation, making asset management much easier and more efficient. After you verify the vendor bill for the relevant product, Odoo will automatically generate and validate the asset using the new asset automation capability. This eliminates the need to produce and validate assets independently, providing a single platform to handle all asset management tasks. This complete step by step beginner guide covers everything you need to know about asset management automation in Odoo 19 Accounting, from creating asset models to reviewing depreciation reports.
What You'll Learn:
- How to create and configure asset models in Odoo 19 Accounting
- How to set up Straight Line, Declining, and combined depreciation methods
- How to automate asset creation via Chart of Accounts configuration
- How to trigger automatic asset generation from vendor bill confirmation
- How to review the Depreciation Board, journal entries, and financial reports
Step 1: Creating an Asset Model
Setting up the appropriate asset model in the Accounting module is a prerequisite for managing any of your company's assets. The asset model defines how assets of a particular type are tracked, depreciated, and accounted for in your financial records.
Navigate to Asset Models
Go to the Accounting module from the Odoo dashboard. Click on Configuration > Asset Models to open the list of existing asset models. Click the New button to create a new asset model.
Set Asset Model Name and Depreciation Method
Enter a name for the asset model in the Asset Model Name field. Choose a Depreciation Method from three options: Straight Line, Declining, or Straight Line then Declining. This determines how depreciation lines are calculated.
Configure Duration and Computation
Enter the total Duration required to depreciate your asset, expressed in months or years. In the Computation section, choose between Based on Days per Period, Constant Periods, or No Pro rata depending on your accounting requirements.
Configure Accounts and Journal
Specify the Fixed Asset Account to record the asset's purchase and initial cost. Set the Depreciation Account used in depreciation entries to reduce asset value. Enter the Expense Account for periodic expense entries. Select the Journal used to document accounting entries for this asset model.
| Depreciation Method | Description |
|---|---|
| Straight Line | Most popular and easiest method. Depreciation line amount is calculated by dividing the gross value by the duration. |
| Declining | Multiplies the declining factor by the residual value to determine the depreciation value for each period. |
| Straight Line then Declining | Combines both methods. Functions like Declining but with a minimum depreciation value equal to the Straight Line value. |
Step 2: Automating Assets via Chart of Accounts
After creating the asset model, you need to configure the depreciation account in the Chart of Accounts to enable automatic asset creation. This is where you define how Odoo should handle asset generation when vendor bills are confirmed.
Open Chart of Accounts
Go to Accounting > Configuration > Chart of Accounts. Find and select the depreciation account that you specified in the asset model. This opens the account's edit window.
Configure Asset Options
Under the Automation tab, locate the Asset Options section. The Automate Asset field has three choices: No disables automation, Create in Draft creates a draft asset after bill validation, and Create and Validate automatically generates and validates assets immediately.
Enable Manage Items and Select Asset Model
Activate the Manage Items option if you need to manage multiple quantities of assets at once. In the Asset Model field, select the asset model you created in Step 1 to link it to this depreciation account.
Step 3: Creating a Vendor Bill to Trigger Asset Creation
Once asset automation is configured, the asset creation is triggered when you confirm a vendor bill. The product on the invoice line must use the same depreciation account as the asset model. Here is how the process works using a Car asset as an example.
Create a Product with Depreciation Account
Create a new product such as Car. Set the cost in the General Information tab. Go to the Accounting tab and set Depreciation as the expense account to link it to your asset model's depreciation configuration.
Create a Vendor Bill
Navigate to Accounting > Vendors > Vendor Bills and create a new bill. Enter the vendor details and add the product on the invoice line. Make sure the account set on the invoice line matches the depreciation account used in the asset model.
Confirm the Vendor Bill
Click the Confirm button to validate the vendor bill. As soon as the bill is validated, a new Assets smart button appears on the bill form. If the bill has multiple quantities, the smart button displays the count of assets generated for each quantity.
View the Generated Asset
Click the Assets smart button to open a new window showing the automatically generated assets. The asset will be in Running status if you selected Create and Validate, indicating Odoo has automatically generated and validated the new asset.
Step 4: Reviewing Depreciation and Financial Reports
After the asset is created and in Running status, you can review all depreciation details, journal entries, and financial reports to verify that asset tracking is working correctly.
Review the Depreciation Board
Open the asset record and navigate to the Depreciation Board tab to see all upcoming depreciation lines. Use the Modify Depreciation button to adjust current depreciation values if needed.
View Journal Entries
Click the Posted Entries smart button on the asset form to see all journal entries. Each entry shows the amount credited to the Depreciation Account and debited to the Expense Account.
Check Balance Sheet and P&L Reports
Go to Reporting > Balance Sheet to see the depreciation account and its balance. Open the Profit & Loss report to view asset expenses. Both reports reflect the automatically generated depreciation entries.
Access the Depreciation Report
Navigate to Accounting > Review > Depreciation to access the dedicated depreciation report. This provides a comprehensive overview of all depreciation activities across your assets in a single view.
Example: Straight Line Calculation
For an asset with a book value of $1,000,000 and a duration of 5 years using Straight Line method with No Pro rata, the monthly depreciation amount is calculated as $1,000,000 / 5 = $200,000 per year, or approximately $16,666.67 per month depending on the period configuration.
Benefits of Asset Automation in Odoo 19
Automated Asset Lifecycle
Assets are automatically created and validated when vendor bills are confirmed, eliminating manual data entry and reducing the risk of errors in asset tracking.
Flexible Depreciation Methods
Choose from Straight Line, Declining, or combined methods to match your accounting standards and regulatory requirements for different asset types.
Integrated Financial Reporting
Depreciation entries flow directly into the Balance Sheet, Profit & Loss report, and dedicated Depreciation report, providing real-time visibility into asset values.
Multi-Quantity Support
When purchasing multiple units of the same asset, Odoo automatically creates separate asset records for each quantity with individual depreciation schedules.
Frequently Asked Questions
What depreciation methods are available in Odoo 19 Asset Models?
Odoo 19 offers three depreciation methods: Straight Line which divides gross value by duration, Declining which multiplies the declining factor by residual value, and Straight Line then Declining which combines both approaches with a minimum depreciation value equal to the Straight Line value.
How does Odoo 19 automate asset creation from vendor bills?
After configuring the asset model and enabling automation in Chart of Accounts, when you confirm a vendor bill with a product linked to the depreciation account, Odoo automatically creates and validates the asset. The asset appears in Running status immediately after bill confirmation.
What is the difference between Create in Draft and Create and Validate in Odoo 19 asset automation?
Create in Draft generates a draft asset after bill validation that requires manual confirmation later. Create and Validate automatically generates and validates the asset immediately, placing it in Running status. No Automation means assets must be created manually without any automatic triggering.
How do I view depreciation entries for an asset in Odoo 19?
Open the asset record and go to the Depreciation Board tab to see all upcoming depreciation lines. Click Posted Entries smart button to view journal entries. You can also modify current depreciation using the Modify Depreciation button on the asset form.
Where can I find the Depreciation report in Odoo 19 Accounting?
Go to the Accounting module and click on the Review menu. The Depreciation report is listed there along with other financial reports. It provides a comprehensive view of all depreciation activities across your assets.
Need Help with Odoo Accounting?
Our Odoo experts can help you configure asset models, set up depreciation automation, and optimize your accounting workflows with Odoo 19.
About the author
Head of Odoo Practice
Leads Braincuber's Odoo implementations across the US, India, and EU. Shipped 50+ Odoo deployments. Specializes in NetSuite and SAP Business One migrations.