Replacement Values (General) (SAP Library - Asset Accounting (FI-AA))

Replacement Values (General)

Use

In addition to the historical acquisition and production costs of an asset, the Asset Accounting component enables you to work with the replacement value of the asset, which can provide a more up-to-date basis for calculating values. When determining replacement value, the system offers two options:

Features

Indexed Replacement Values

Using index series, you can take periodic changes in value into account automatically. When depreciation is posted, these changes are reflected in the specific asset or asset class. Define the index series or index figures in Asset Accounting (Periodic Processing ). Enter the key of the index series in the section for asset valuation in the master record of the asset or asset class.

The replacement value of an asset is influenced by two things.

On the one hand, the replacement value of an asset changes due to inflation.

On the other hand, technical progress leads to a changed price for an appropriate replacement acquisition.

Therefore, you can specify two index series for each asset for determining replacement value in the Asset Accounting component. The replacement value is then determined by multiplying the index figures in the two index series.

Revaluation of Fixed Assets and Management of Inflation

The system offers two options for handling changes in the value of all fixed assets in an enterprise:

Tax laws in your country may require you to carry out a single revaluation of the entire fixed asset portfolio, at intervals of several years, in order to offset the effects of inflation. In the system, you can use one-time revaluation measures for meeting these requirements.

This one-time revaluation is not calculated automatically at the same time as depreciation. You have to define and carry it out manually. You can use collective processing to carry out this revaluation.

To carry out periodic revaluation, choose Periodic Posting ® Balance Sheet Revaluation ® Post Revaluation.

Using periodic revaluation, you can keep track of and post the effects of inflation.

To carry out periodic revaluation, choose Periodic Posting ® Balance Sheet Revaluation ® Inflation.

For more information, see the SAP Library for CA – Country-Specific Documentation. The procedure is described using Argentina as an example.