Revaluation of an Asset

The Asset Revaluation feature enables you to write down or revaluate 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 for the asset and post the difference to the general ledger. Revaluation is a procedure that adjusts the true value of the fixed assets owned. Asset Revaluation is supported for accounting methods only. It does not apply to alternate/tax methods that are not associated to an accounting book.

Starting with Fixed Assets Management version 18.1, asset and tax records are linked to an accounting book. For non multi-book accounts, all records are tagged to the primary accounting book. With this change, the tax methods will be visible in 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 desired asset by name or ID.

     Selecting an asset will display the revaluation section, showing the revaluation amount details per accounting book and depreciation method.

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

     Note:

     This field is available only if you have enabled the Multi-book Accounting feature in your account.

   • Write-down % – Enter the write-down percentage for revaluation. This will be applied to tax methods associated to an accounting book.

     For compound assets, the write-down percentage will be applied to all components. If you want to apportion a different write-down percentage for each component, go to Step 4.

   • Transaction Date – Enter a date for the journal entry for this transaction. If the field is blank, the system will use 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 write-down amount will be computed based on 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, the write-down amount will display the total write-down of all the components.

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

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

     When the adjusted lifetime is changed to a period that is equal to the last depreciation period, the status of the asset will be set to Fully Depreciated. If the asset’s revision rule is set to Current Period, the current net book value will equal the residual value, and the cumulative depreciation will equal the asset current cost.

   • Adjusted Depreciation Method – Select the new depreciation method that will be used to depreciate this asset.

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

   If the Multi-Book Accounting feature is enabled on your account, clicking Calculate will also enable the revaluation fields of the selected accounting books. If this feature is not enabled on your account, you do not have to click Calculate. The revaluation fields will be enabled when you select an asset.

   Note:

   If you are revaluing a simple asset, any changes you make to the accounting book selection and the write-down percentage requires you to recalculate the write-down amount. When you removed an accounting book for example, you need to click Calculate to remove the accounting method of that book from the revaluation. If you are revaluing a compound asset, you can click Process Revaluation regardless of any changes you make after calculating the write-down amount.

4. If you want to revalue only a specific component, or enter 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.

   Journal entries are created to post the difference in value.

   A revaluation depreciation history record will be written to each component of the compound asset. The compound asset record will have a list that shows the total of all the component revaluation, but will have no journal entries. You can find the journal entries in the component asset record under the Components > Depreciation History subtab.

   If you have enabled the Custom Transactions and Use Custom Journals preference, a specific journal entry will be created for asset revaluation. You can view these journal entries in Fixed Assets > Transactions > Journal Types. Note that you have to manually set the status of the journal entry to Approved before it is posted. For more information, see Viewing and Approving Custom Journal Entries.

   Note that if the Require Approvals on Journal Entries preference is enabled, and you do not have permission to approve journal entries, the system will require administrator approval before a journal entry is posted.

   You will be redirected to the Process Status page, where you can track the status of the revaluation. On the Process Status page, the following processes will be queued for asset revaluation. You can click the Details link on any process to view the process stage details.

   Process	Process Stage	Process Stage Description
   Asset Revaluation	Revalue Asset	Adjusts the value of the asset.
   	Update Related Records	In case of failure, changes made in the previous stage will be reverted. If the revaluation is successful, this process is skipped and the status will be set to Not Required.
   	Delete Old Forecast Values	System deletes the existing depreciation schedule since it is longer accurate after the asset is revalued.
   	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 to use for bulk asset revaluation, take note of the following guidelines and limitations:

• The Asset ID and Transaction Date fields on the CSV file are required. If one of these fields is left blank, the CSV file will not be processed.

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

• To revalue an asset’s tax method, specify the tax method’s internal ID in the Tax Method ID column. Leave the column blank to revalue the asset only.

• At least one of the optional columns aside from the Tax Method ID and Transaction Reference must have a value.

• Only component assets can be revalued. Compound assets are not supported.

• The CSV file is subject to storage availability on the File Cabinet. The CSV file size must not exceed 10 MB.

• The numbers and currency amount in the CSV file should follow the number formats defined in Setup > Company > General Preferences.

• If validation errors are encountered, the CSV file will not 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 that you want to revalue.

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

4. Click Submit.

   You will be redirected to the Process Status page, where you can track the status of the revaluation. On the Process Status page, the following processes will be queued for asset revaluation. You can click the Details link on any process to view the process stage details.

   Process	Process Stage	Process Stage Description
   Bulk Asset Revaluation	Map CSV Data to Revaluation Details	Maps and converts the CSV data in preparation for the revaluation process.
   	Revalue Asset	Adjusts the value of the asset.
   	Update Related Records	In case of failure, changes made in the previous stage will be reverted. If the revaluation is successful, this process is skipped and the status will be set to Not Required.
   	Delete Old Forecast Values	System deletes the existing depreciation schedule since it is longer accurate after the asset is revalued.
   	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