Manual Revaluation and the Asset Revaluation (Inflation) Program 

Use

Normally, the Asset Revaluation (Inflation) program does not revaluate again assets that you have manually revaluated for a given interval. You can, however, override this function if you wish.

Features

Nonrevaluation of Manually Revaluated Assets

Normally, the Asset Revaluation (Inflation) program does not revaluate again assets that you have manually revaluated for a given interval.

Assume that in June you manually revaluate an asset worth UNI 25,000 by UNI 1,000. When at the end of the interval (that is, on 30 June) you come to run the Asset Revaluation (Inflation) program, it recognizes that you have already revaluated the asset and does not attempt to revaluate it again.

Revaluation of Manually Revaluated Assets

However, you can also customize the system so that the program does revaluate the asset. In that case, the program:

  1. Revaluates the asset as normal (on the basis of the value at the start of the interval)
  2. Subtracts the manual revaluation from the automatic revaluation to get the difference between the two
  3. Posts the difference so that the asset is effectively revaluated as it would have been had you not manually revaluated it in the first place.
  4. Posts the difference in the negative to a revaluation difference area. This function allows you to keep track of the original manual revaluations.

Activities

To activate the revaluation of manually revaluated assets, you must assign the revaluation area a revaluation difference area, which you can do in Customizing for Financial Accounting (FI), by choosing Asset Accounting ® Special Valuation ® Revaluation of Fixed Assets ® Revaluation for the Balance Sheet ® Inflation Accounting ® Revaluation Areas ® Define Base Depreciation Areas.