Oman / Fixed Assets
Fixed Assets
A fixed asset is something your company buys once and uses for years: a computer, furniture, a shop fit-out. This page records it, so the cost is spread over the years you use it instead of landing in one month's profit.
How it works
- 1Bill is enteredYou or the system enter the supplier bill as usual.
- 2You click Make assetPick the bill line, the category and the years.
- 3Asset is RunningIt appears in the list at the top of the page.
- 4Cost is spreadYour accountant posts the depreciation in Odoo.
- 5VAT is trackedA report shows any VAT correction for the VAT return.
When to use it
Use it for purchases that will last more than a year and cost a significant amount: a laptop, a server, furniture, a fit-out. Do not use it for rent, subscriptions or small supplies. Your accountant can tell you the minimum amount for your company.
Make a fixed asset
- Enter the supplier bill as usual in Vendor Bills.
- Open Fixed Assets in the menu.
- Open Make a fixed asset from a bill line. Type in the Filter box to find the line.
- On that line choose the Category, then check Life (years), VAT initial % and VAT period.
- Click Make asset.
The asset appears at the top of the page with the status Running. The bill itself is never changed, and each bill line can become an asset only once.
What to enter
| Field | What to put |
|---|---|
| Category | The kind of asset, for example Computer Hardware & Software or Furniture and Equipment. |
| Life (years) | How many years you expect to use it. The category suggests a number; change it if needed. |
| VAT initial % | How much of the VAT on the bill you deducted in your VAT return. Put 100 if you deducted all of it. |
| VAT period | Leave 5. Choose 10 only for land and buildings. |
The asset list
The list at the top shows each asset: its category, purchase date, cost, VAT on the bill, the two VAT settings, its life and its status. Running means the cost is being spread over the years.
Made a mistake? Ask your accountant to correct it. Selling or scrapping an asset is done by your accountant in Odoo.
For accountants
- Entry. Making the asset posts a reclassification entry in the MISC journal, dated as the bill: debit the category's fixed-asset account, credit the bill line's original expense account, for the net amount of the line. The vendor bill is not touched.
- Categories. Computer Hardware & Software (100605), Furniture and Equipment (100604), Leasehold Improvement (100603), Right of use Asset (100801), each with its accumulated depreciation and depreciation expense accounts. The lives per category are placeholders to be set by the owner.
- Depreciation. The asset is confirmed immediately and depreciated straight-line over the life. The scheduled job for assets is switched off, so the accountant posts depreciation with Invoicing > Assets > Compute Assets. See Daily and Month-End Routine.
- VAT. The asset keeps a link to the source bill line, so the input VAT and date come from the bill. The report Capital Asset VAT Adjustment (Reports, Managerial) gives the yearly adjustment: input VAT × (initial deduction % − the year's deduction ratio) ÷ adjustment years. Positive goes to box 5b, negative to box 6d. The first adjustment is in the year after acquisition. The first adjustment year and the formula are not yet confirmed against a Tax Authority example.