Asset Management in Adempiere


Problem Statement

Any kind of business, be it manufacturing or services based, will have certain assets which help business to manage their operations, serve customers better and create future cash flow. As ‘Assets’ are vital and important of any business, there is need to manage assets effectively. Business owner would like to track all the assets and ensure that they are well taken care and utilized for the right purpose. Business would also like to track cost of purchase, maintenance cost over a period and net worth of this asset at any point of time

ADempiere has Asset management module that caters most of the ‘Asset Management’ needs of any business irrespective of its size. Typically following functionalities are desired by most of the businesses:

1. Creation and tracking of assets
2. Track procurement cost
3. Track maintenance cost
4. Configurable Depreciation methods
5. Asset Disposal
6. Inbuilt and seamless Integration with accounting

7. Ability to calculate net asset at any given moment by following the accounting rules

Scope Of Article

As part of this article, we will cover following aspects of ADempiere’s Asset management
• Create and track assets
• Tracking procurement cost
• Tracking maintenance cost

Depreciation concepts and and accounting integration in asset management will be covered in future article.

Technology

• ADempiere 360 or more

Assumptions
• This article assumes you have integrated with Asset management module that was tested and enhanced by Red1, you can see the artifacts in the following link
http://adempiere.svn.sourceforge.net/viewvc/adempiere/branches/FixedAssets/
• This does document does not cover integration steps as there is already documentation provided by same author

Details

Let us take an example of a software company, which uses ADempiere as an ERP system for managing its day to day operations. It decides to procure one new server to host some of apps that were developed recently.

Step 1: Basic configurations

1. Login into ADempiere application with client admin

2. Open System Admin -> General Rules – > Security -> Role Access Update, now select Client Admin Role and click on ‘Start’ button

This step will grant access to this specific role for all of the asset management related windows.

3. Now open ‘Asset Type’ window and create new Asset Type

Note

By default all the assets created using this asset type

  •  will be in possession of business
  • will be depreciable
  • will be owned by the business

4. Create new ‘Asset Group’ from Asset Group

Here I selected ‘Asset Type’ created in last step, so deafult data is already copied.

5. Now create entry into ‘Asset Group Account’

You can choose any depreciation type, but you must select  ‘Process Now’, otherwise Asset balance will not be updated.

6. Configure a product category  with name ‘Computers’ in the system, associate ‘Asset Group’  created in previous step to this category

7. Configure a product with name ‘Computer’ in the system and associate this product with price list

Make sure that the Stocked checkbox is ‘Unchecked’ and the Product Category is set to the one created in previous step.  This steps allows users to raise purchase order and invoice for the asset with the product name as Computer.

Step 2: Procuring Asset

1. Create Purchase order for computer

2. Now complete purchase order

3. Now create Purchase Invoice for this order

4.  Now go to ‘Invoice Line’ tab of the Invoice vendor and mark invoice line as ‘Asset Related’ and set ‘Captial vs Expense’ to ‘Capital’. Also, select Asset Group as Asset Group that we have created in one of the previous steps

5. Now go ahead and create ‘Asset’  in asset window

6. Associate this Asset with invoice line of Purchase invoice

7. Now complete purchase invoice

8. Run ‘Inbound Charges for AP’ job to update asset balances

9. Go back to asset window and verify the asset balances tab of the asset. Now the balance shows the amount spent on procuring the asset

10. Check asset cost details now, in cost details tab of asset window

Step 3: Maintenance of asset

1. Assume that the just purchased IBM blue scope server has an issue. You need to call a technician to fix it. Also, he will give you an invoice against which you will pay him. In order to track this expense, make sure that you associate the invoice line with the required asset and select “Captial vs Expense” value as ‘Expense'(as shown in below image):

2. Now complete newly created expense invoice for asset

3. Run ‘Inbound Charges For AP’ process again

4. Now check Asset Cost Details in asset window, it has 2000 expense that mentioned

Summary

As part of this article you have seen and learned about setting up asset and asset group and categorising a given product as an asset. Once you purchase a product, you can associated them with your asset and that will be included as part of the Adempiere asset management. Further you also saw that in case you incur any expense then Adempiere keeps track of that as well. While this is just one part of the asset management, the other parts like depreciation and accounting facts will be discussed as part of later article.

Walking Tree promotes Adempiere and we support the users as well as the developers to ensure that the business is able to take complete advantage of Adempiere’s wonderful capability. In case you are looking for a professional assistance then do visit our website to get in touch with us.

Reference

Tagged with: , ,
Posted in ADempiere
7 comments on “Asset Management in Adempiere
  1. littlemayta says:

    Reblogged this on Adempiere ERP and commented:
    Guía explicita de configuración de Activos Fijos.

  2. sami ullah says:

    hi,

    addition done now only depreciation using the reducing balance method to be checked.

    thanks for documentation

    regards

    sami

  3. sami ullah says:

    Hi,
    Does the reducing balance method work in fixed assets module

    Your documentation is good.

    regards

    sami

  4. sami ullah says:

    Hi i am getting the error “A_depreciation_id is mandatory” . Please suggest solution
    regards
    sami ullah

  5. Hi Ponni,

    Did you give proper Asset details(Capital vs Expense,Asset) in Invoice Line and Invoice must be completed before running this process.

    Please make sure above of them.

    Thanks
    Ravindar

  6. Ponni says:

    Hi I am getting error during Inbound from AP, when I click start on inbound showing me as ZERO RECORD Inserted.. please help me to solve this.. thanks in advance

  7. Jahn says:

    Thank you for the walk-through. I always had problem implementing Fixed Assets on Adempiere.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

We Have Moved Our Blog!

We have moved our blog to our company site. Check out https://walkingtree.tech/index.php/blog for all latest blogs.

Sencha Select Partner Sencha Training Partner
Xamarin Authorized Partner
Recent Publication
%d bloggers like this: