This solution is intended for use in high-inflation countries where you are required to adjust for inflation your fixed assets on a regular basis, as part of normal closing activities. It is not intended for one-time revaluations, which in the SAP System are covered by different functions.

The solution allows you to revaluate assets for inflation by adjusting their historical cost and depreciation according to the inflation index.

Just as you record asset acquisition and production costs – and the appropriate depreciation – in depreciation areas, you record asset revaluation amounts in revaluation areas, a form of depreciation area.

You carry out the revaluation using a program designed specifically for this purpose, which calculates the revaluation amounts and are stores them in the asset subledger until such time as you execute a depreciation run. The amounts are then posted to the general ledger along with the depreciation.

The system allows you to work with provisional and definitive indexes.

The system automatically revaluates the depreciation amounts along with the assets' acquisition and production costs, to ensure that the entire asset is depreciated fully. For more information about the general revaluation procedure, see Asset Revaluation.

Normally you revaluate your assets at regular intervals by applying the inflation index. Sometimes, however, a government may issue a ruling that stipulates that assets of a certain kind are to be adjusted using other criteria for a particular interval. In this event, you can revaluate the asset accordingly using the Manual Revaluation transaction. When you come to run the revaluation program for the interval, it recognizes that the asset has already been revaluated and does not attempt to revaluate it again until the next interval. For more information, see Manual Revaluation.

As regards the master data, you have to assign a revaluation key to each new asset master that you create.