Revaluation Calculation 

Use

The system revaluates assets when you run the Asset Revaluation (Inflation) program.

Activities

In order to revaluate an asset, the system determines:

It reads this information from the asset master data and the asset's revaluation key.

Example

In the sample process, you were required to revaluate drilling equipment at the end of every month. Let us consider what happens at February month-end.

When you come to revaluate the asset on 28 February, the program proceeds as follows:

  1. It looks up the asset's revaluation key to see which period control method is assigned to it.
  2. In the period control method, it looks up what TBE variant you have entered for acquisitions.

    3. The TBE variant tells the program to revaluate the asset for the interval of 1–28 February.

  3. It looks up the asset revaluation key to see what inflation index to apply.
  4. In the inflation index, it looks up the inflation values in the inflation index and then calculates the net inflation rate for the month of February.
  5. It then checks the posting variant to see whether you have set 28 February as a posting date. Because you have, the system knows to create an asset revaluation document for this asset.

If the system looks for an inflation index value for a particular date, but you have not maintained a value for that date, the system will determine the value on that date automatically. To do so, it assumes that inflation progresses at a constant rate between any two inflation values. So, for example, if you enter an inflation index value for 31 January (1,500) and one for 28 February (1,510), but want to calculate inflation as at 14 February, it will assume that the inflation index on that date is 1,505.

With this information, the system is able to revaluate the asset.

See also:

Manual Revaluation