Determination of Offsetting Account for New Valuation Posting 

Use

Asset revaluation postings can be required to be made to balance sheet accounts or to profit and loss accounts, or to a combination of the two. The offsetting account to be used for these postings is determined by various country-specific and international accounting standards.

The new value revaluation posting options of the Post Revaluation and New Valuation report (RAAUFW02) allow for the individual account determination rules of every country. You can specify which account is to be used and the system can then default this account for revaluation postings.

Activities

Master Data

Create a separate General Ledger account for each class of assets that is subject to revaluation/new valuation.

This new revaluation clearing account should have the following characteristics:

·         Balance sheet account

·         Ability to be manually posted to

·         Not a reconciliation account

·         If final posting determination is on net class movement, it is not necessary to have line item display set for the account. This is the case for Australian requirements.

·         Tax category of ‘blank’ (revaluation postings are not consumption tax relevant)

Customizing

Assign the new revaluation clearing account to each of the appropriate account assignments in Customizing for Financial Accounting (FI) by choosing Asset Accounting ® Special Valuation ® Revaluation for the Balance Sheet ®Specify Accounts for Revaluation of APC. Make the assignments as follows:

Revaluation of APC        -           APC account (or equivalent)

Revaluation Contra         -           New revaluation clearing account for

                                                each class

Periodic Processing

When the revaluations are complete for an asset class, post a manual document to allocate the appropriate portion of the revaluation clearing to the balance sheet (revaluation reserve) and the profit and loss accounts.

After the manual postings, the revaluation clearing accounts should be zero.