Revaluation of an Asset

The Asset Revaluation feature lets you write down or revalue an asset. A write-down is a form of depreciation that involves a partial write-off. Writing down the asset lets you enter a new net book value and post the difference to the general ledger. Revaluation adjusts the true value of the fixed assets. Asset Revaluation is supported for accounting methods only. It does not apply to alternate/tax methods that are not linked to an accounting book.

Starting with Fixed Assets Management version 18.1, asset and tax records are linked to an accounting book. In non multi-book accounts, the system tags all records to the primary accounting book. With this change, you'll see the tax methods on the Asset Revaluation page when you select an asset. Records are arranged by accounting book, GL posting tax methods, and then non GL posting tax methods.

Revaluing a Single Asset

To revalue a single asset:

1. Go to Fixed Assets > Transactions > Asset Revaluation.

2. On the Asset Revaluation page, enter values for the following fields:

   • Asset ID/Name — Select the asset by name or ID.

     When you select an asset, the page shows the revaluation amounts by accounting book and method.

   • Accounting Books — Select the accounting book that you want to revalue.

     Note:

     This field is available only if you enabled the Multi-book Accounting feature.

   • Write-down % – Enter the write-down percentage for revaluation. This applies to tax methods linked to an accounting book.

     For compound assets, the write-down percentage applies to all components. To set a different percentage for each component, go to Step 4.

   • Transaction Date – Enter a journal date for this transaction. If the field is blank, the system uses the date when the revaluation is processed.

     The revaluation date must be on or after the Last Depreciation Date.

   • Transaction Reference – Enter a reference to identify the journal entry for this transaction.

   • Write-down Amount – The system calculates this amount from the Current Cost and the Write-down %. You can enter a write-down amount to override the calculated value. This amount is subtracted from the current net book value.

     For compound assets, this amount shows the total write-down for all the components.

   • Adjusted Residual Value – Enter the new residual value of the asset.

   • Adjusted Lifetime – Enter the new lifetime of the asset.

     If the new lifetime equals the last depreciation period, the asset’s status becomes Fully Depreciated. If the asset’s revision rule is set to Current Period, the current net book value equals the residual value, and the cumulative depreciation equals the asset current cost.

   • Adjusted Depreciation Method – Select the new depreciation method that for this asset.

3. Click Calculate to compute the write-down amount based on the write-down percentage.

   If Multi-Book Accounting is enabled, clicking Calculate also enables the revaluation fields for the selected accounting books. If this feature isn't enabled, you don't have to click Calculate to enable the revaluation fields. They're automatically enabled when you select an asset.

   Note:

   If you're revaluing a simple asset, any change to the accounting book selection and write-down percentage requires you to recalculate the write-down amount. Removing a book, for example, requires you to click Calculate to remove the book's accounting method from the revaluation. If you're revaluing a compound asset, you can click Process Revaluation regardless of any changes after calculating the write-down amount.

4. To revalue only a specific component, or set different write-down percentages for each component, go to the Component section. Enter the write-down percentage for the component you want to revalue.

5. Click Process Revaluation.

   The system creates journal entries to post the difference in value.

   The system writes a revaluation depreciation history record to each component. The compound asset record shows the total component revaluation, but has no journal entries of its own. You can find the journal entries in the component asset record under Components > Depreciation History subtab.

   If you enabled Custom Transactions and Use Custom Journals, the system creates a specific journal entry for asset revaluation. You can view these journal entries in Fixed Assets > Transactions > Journal Types. You'll need to set the journal entry's status to Approved before it posts. For more information, see Viewing and Approving Custom Journal Entries.

   If Require Approvals on Journal Entries is enabled, and you don't have permission to approve journal entries, an administrator must approve them before posting.

   You'll be redirected to the Process Status page, where you can track the revaluation's status. The Process Status page queues the following processes for asset revaluation. Click Details on any process to view its stage details.

   Process	Process Stage	Process Stage Description
   Asset Revaluation	Revalue Asset	Adjusts the value of the asset.
   	Update Related Records	If the revaluation is successful, the system skips this process and sets the status to Not Required. If it fails, the system reverts changes made in the previous stage.
   	Delete Old Forecast Values	The system deletes existing depreciation schedule since it's no longer accurate after the revaluation.
   	Update Compound Assets	Updates compound asset records.
   	Update Related Records	Updates other records related to this asset.
   Generate Depreciation Schedule	Generate Depreciation Schedule Values	Creates new depreciation history records for generated assets and tax methods.

Revaluing Multiple Assets

Guidelines and Limitations when Revaluing Multiple Assets

When creating a CSV file for bulk asset revaluation, review the following guidelines and limitations:

• The Asset ID and Transaction Date fields in the CSV file are required. If one of these fields is blank, the CSV file won't be processed.

• The value in the Asset column must match the Asset Internal ID.

• To revalue a tax method, enter its internal ID in the Tax Method ID column. Leave the column blank to revalue only the asset.

• At least one optional column, other than the Tax Method ID and Transaction Reference, must have a value.

• Only component assets can be revalued. Compound assets aren't supported.

• The CSV file size can't exceed 10 MB and is subject to the File Cabinet's storage availability.

• Numbers and currency amounts in the CSV file should follow the formats defined in the General Preferences page.

• If the CSV file has validation errors, it won't be processed even if some rows are valid.

To revalue multiple assets:

1. Go to Fixed Assets > Transactions > Asset Revaluation.

2. On the Asset Revaluation page, click Import CSV.

3. On the Bulk Asset Revaluation page, click Choose File and locate the CSV file containing details of the assets you want to revalue.

   You can download a sample file from the link below the Select File field.

4. Click Submit.

   You'll be redirected to the Process Status page, where you can track the revaluation's status. The Process Status page queues the following processes for revaluation. Click Details on any process to view its stage details.

   Process	Process Stage	Process Stage Description
   Bulk Asset Revaluation	Map CSV Data to Revaluation Details	Maps and converts the CSV data to prepare for revaluation.
   	Revalue Asset	Adjusts the asset value.
   	Update Related Records	If the revaluation is successful, the system skips this process and sets the status to Not Required. If it fails, the system reverts changes made in the previous stage.
   	Delete Old Forecast Values	The system deletes existing depreciation schedules since it's no longer accurate after the revaluation.
   	Update Compound Assets	Updates compound asset records.
   	Update Related Records	Updates other records related to this asset.

For information about asset revaluation in multi-book accounting, see Revaluating an Asset in Multiple Books.

Related Topics

• Fixed Assets Management Overview
• Depreciation Methods
• Creating Asset Records from Transactions
• Creating Asset Records through CSV Import
• Creating Asset Records Manually
• Managing Assets

• Fixed Asset Recovery Script

• Asset Depreciation
• Group Tax Depreciation
• French Derogatory Depreciation
• Asset Disposal by Sale or Write-Off
• Partial Disposal of an Asset
• Asset Split
• Asset Transfer
• Deleting Assets

General Notices