Accounting · Odoo glossary
Asset Capitalization
Asset capitalization records eligible expenditure as an asset instead of immediately expensing it.
Definition
In general ERP practice
Asset capitalization records eligible expenditure as an asset instead of immediately expensing it. The amount recognized and subsequent depreciation follow the business’s accounting policy.
In Odoo
Odoo records eligible purchases in an asset account and can create asset records using configured account automation and asset models. An asset model supplies depreciation assumptions; selecting an asset account does not by itself establish that an expenditure qualifies for capitalization.
Official Odoo documentation
The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.
Related glossary terms
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