Understanding the Information to Set Up for Revaluation

When you revaluate assets in Peru, you must set up revaluation accounts that are different from those accounts used to record the initial value and accumulated depreciation. You set up the revaluation accounts for each cost code using the Default Revaluation Accounts program (P76P501). This program enables you to link the cost account, by company, to a revaluation asset cost account and revaluation accumulated depreciation account. When you run the Revaluation Journal (R12845), the system uses the accounts that are set up in the Default Revaluation Accounts program for the journal entries that the system generates. The system stores default revaluation account information in the Default Asset Revaluation Account table (F76P501).

In addition to setting up revaluation accounts to use, you must also set up revaluation limits. The Peruvian legislation states that assets cannot be revaluated at an amount that is greater than the current market value (replacement value) of the asset. To accommodate this requirement, you must set up the revaluation limit for each asset before you run the Revaluation Journal program. You use the Revaluation Limit program (P76P503) to set up the market value for each asset with an ending date. When you run the revaluation process, the system uses the limit that you establish if the calculation results in an amount that is greater than the limit. The system stores the revaluation limit records in the Regional Constants by Asset Number table (F76P503).