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Hello,

I need advice on how to handle a situation related to fixed assets in Odoo 18. 

Below is the scenario:

  1. Asset Purchase:
    • We bought a vehicle using the Accounting module so that it does not impact our inventory.
    • We created a bill for the vehicle from the Accounting > Vendors > Bills.
    • We selected the vehicle fixed asset account for the purchase.
    • Upon confirming the bill, a fixed asset was automatically created.

  2. Asset Details:
    • Acquisition Date: 01/01/2024
    • Original Price: USD 100,000
    • Book Value: USD 100,000
    • Prorata Date: 01/02/2024
    • Depreciation Method: Straight Line
    • Duration: 5 years
    • Depreciation for 2024: USD 18,333.33

  3. Sale of the Asset:
    • We plan to sell the vehicle on 14/03/2025 for USD 45,000.
    • The vehicle will be sold at a loss.

Question:

We are unsure how to record the accounting entry for the loss on the sale of this asset. Specifically, We need some help:

  • How to properly account for the sale price (USD 45,000).
  • How to handle the depreciation that has been recorded until the sale date.
  • How to record the loss (if any) on the sale in Odoo.

Does anyone has a step by step explanation with the necessary journal entries or any specific configurations we should be aware of.

Thank you in advance.

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Best Answer

You bought a vehicle for $100,000 and depreciated it over 5 years. By the time you sell it on March 14, 2025, it has $22,152.77 in accumulated depreciation, leaving a book value of $77,847.23.

You're selling it for $45,000, which means you're taking a loss of $32,847.23.


1. Create a Customer Invoice

Go to Accounting > Customers > Invoices

Add the customer and enter the sale price ($45,000)

Validate and register the payment

2. Dispose of the Asset

Go to Accounting > Assets

Select the vehicle and click MODIFY DEPRECIATION

From the Wizard select the Sell Action

Link to the Sales Order you created

Verify the Loss Account

3. Odoo Will Handle the Journal Entries:

After this, your financials will be up to date:

The asset is off your books

The loss is recorded in your P&L

Your cash or accounts receivable reflects the sale

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Author

Thank you, Loice

I really hope it work well

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