Revaluation Year Balances

When you select Revaluation Year Balances, the system revalues the current year-to-date balance separately and then revalues the beginning balance. Unless you specify otherwise, the system updates the cost, primary accumulated depreciation, and secondary accumulated depreciation accounts. In an example of the revaluation process for year balances, the system:

1. Revalues the current year-to-date amounts for both primary and secondary accumulated depreciation, and calculates the adjustment amount.

2. Revalues the beginning balances in both the depreciation accounts and calculates their adjustment amounts.

3. Adds together the adjustments for both the year-to-date and the beginning balances, and creates one journal entry for the ledger that you have specified in the processing options.

4. Creates offsetting journal entries for posting to the current year offset account (to offset the year-to-date balance adjustment) and prior year offset account (to offset the beginning balance adjustment) that you set up in the FR AAIs.

Revaluation for the asset cost is treated similarly, except that only a single offset exists.