Setting revaluation rule

This page allows you to set a new revaluation rule. Tell me more.

Select the “Set Revaluation Rule” link under the “Asset Revaluation” business component.

The “Set Revaluation Rule” page appears.

Enter the following fields:

Revaluation Type	Use the drop-down list box to select the method in which the assets have to be revalued. The revalued types available are
	Downward – indicates that the asset must be revalued downward from the original value of the asset.
	Upward – indicates that the asset must be revalued upward from the original value of the asset.
	The system displays “Upward” by default on launch of the page.

Note: The “Allow Downward Revaluation” field must be set to “Yes” in the “Set Parameters – Fixed Assets” activity of the “Company Parameter Setup” business component.

Asset Class Code	Use the drop-down list box to select the code identifying the class to which the assets belongs. All the assets belonging to the asset class will be picked up for soft revaluation run. The asset class must have been defined in the “Create Asset Class” activity of the “Asset Type Definition” business component. The system displays the first asset class in the list by default on launch of the page.
Revaluation Rule No.	The unique number identifying the revaluation rule (Alphanumeric, 20). Mandatory. You can also seek the help provided to modify the revaluation rule that has been already defined.
	Help facility available.
	Press <Enter> key. The system retrieves the rule description and other revaluation details if available based on the selection.

Note: If you are going to modify the revaluation rule details, then seek the help facility provided.

Rule Desc.	The textual description pertaining to the revaluation rule number (Alphanumeric, 256).
	Zoom facility available.

Click the “Get” pushbutton to retrieve the revaluation rule details if it is already available.
Enter the following fields:

Revalue Cumulative Depreciation	Check this box if you want to revalue the cumulative depreciation of an asset.
Depreciation Book Code	Use the drop-down list box to select the code identifying the depreciation book. The system lists all the depreciation books defined in the “Create Depreciation Setup” activity of the “Asset Depreciation Setup” business component. The system displays the first depreciation book in the list by default on launch of the page.

Note: The “Depreciation Book Code is mandatory if the revalue cumulative depreciation is checked.

Revaluation Basis	Use the drop-down list box to select the basis on which the assets are to be revalued. You can revalue the assets based on
	Asset Cost – The assets are revalued based on its original cost.
	Revaluation Cost – The assets are revalued based on their last revaluation cost.
	The system displays the “Asset Cost” by default on launch of the page.
Revaluation Option	Use the drop-down list box to select the mode in which the assets are to be revalued. The various revaluation options available are
	Indexes – Indicates that the revaluation is done with respect to an index provided.
	Percentage – Indicates that the assets can be revalued based on the percentage value. For example, if the percentage specified is 50%, then half of the asset cost is to be revalued.
	By Amount – Indicates that the assets can be revalued by certain amount. If the amount specified is 50,000 and the cost of the asset is 1,00,000, then the cost of the asset after revaluation would be 1,50,000.
	To Amount – Indicates that the assets are to be revalued to the Amount specified.
	The system displays “Indexes” by default on launch of the page. Example.

Note: If the “Revaluation Option” selected is “Percentage”, “By Amount” or “To Amount”, then the “Index Option”, “Number of Index Years”, “Start Year” and the fields in the multiline must not be entered.

Revaluation Percentage	The percentage by which the assets are to be revalued (Decimal). The value must be greater than zero. This field is mandatory if the “Percentage” is selected in the “Revaluation Option” field. Otherwise this field must not be entered.
Linked to Previous Revaluation	Check this box if you want to link the revaluation to the revaluation that has been run already.

Note: There must exists some revaluation run number whose run date precedes the run date of the present revaluation run.

Index Option	Use the drop-down list box to select the index option. The various index options available are
	Calendar Year – indicates that the calendar year will be taken into account with respect to an index during the revaluation process.
	Age – indicates that the age of the asset will be taken into account with respect to an index during the revaluation process.
	Financial Year – indicates that the financial year in which the revaluation is done will be taken into account during the process.
	Date Range – indicates that the date range in which the asset is purchased and the date range in which the date of revaluation falls will be taken into account during the revaluation process.
	The system displays the “Calendar Year” by default on launch of the page. The system also displays blank for selection. Example

Note: The “Index Option” field must not be left blank, if the “Revaluation Option” selected is “Index”.

No. of Index Years

The number of years for which you want to enter the index values (Integer). The number of years must be greater than zero.

Note: This field must be left blank if “Revaluation Option” is selected as “Percentage”, “By Amount” or ”To Amount”.

Start Year

The starting year from which the revaluation process starts (Decimal).

Enter the following fields in the “Index Values” multiline:

Note: All the fields in the multiline must be left blank if “Revaluation Option” is selected as “Percentage”, “By Amount” or ”To Amount”.

Data entry in this multiline is mandatory if the “Index Option” has been selected as “Age”.

Year

The year in which the revaluation is being done (Integer). Example, 1997, 1998 etc.

Note: If the “Index Option” selected is “Calendar Year”, “Age” or “Financial Year”, then the “Year” must not be left blank.

Start Date	The starting date in the period for which a revaluation index value is set (Date Format). The dates must have been defined in the “Create Calendar” activity of the “Accounting Setup” business component.
End Date	The ending date in the period for which revaluation index value is set (Date Format). The dates must have been defined in the “Create Calendar” activity of the “Accounting Setup” business component.

Note: The “Start Date” and the “End Date” must not be left blank if the “Index Option” selected is “Date Range” and must fall within the year specified.

Indexes

The index value with respect to which the revaluation is done (Decimal). This field is mandatory if the “Revaluation Option” selected is “Index” and must be greater than zero.

Note: The Indexes will be in increasing trend if the Revaluation Type is Upward and will be in decreasing trend if the Revaluation Type is Downward.

The system displays the following fields in the “Automatic Revaluation Run” group box:

Soft Revaluation Run No.	The unique number identifying the soft revaluation run. The number is automatically generated at the time of setting the revaluation rule.
Status	The statuses of the soft revaluation run number. The various statuses available are
	In Process – Indicates that the soft revaluation run is in process. The soft revaluation can be processed in this activity or in “Run Soft Revaluation” activity of this business component.
	Processed – Indicates that the revaluation run is completed. Only the revaluation run in “Processed” status can be confirmed and authorized.
	Deleted – Indicates that the revaluation run number is deleted before authorization. The revaluation run number is deleted in the “Run Revaluation” activity of this business component.
	Confirmed – Indicates that the revaluation run number is confirmed and are yet to be authorized. The revaluation run number is confirmed in the “Run Revaluation” activity of this business component.
	Authorized – Indicates that the accounting entries are posted in the books of accounts after authorization. The revaluation run number is authorized in the “Run Revaluation” activity of this business component. The revaluation number once authorized cannot be deleted. It can be reversed.
	Reversed – Revaluations previously Authorized can be Reversed.

Enter the following fields:

Run Date	The date on which the assets must be revalued (Date Format). The date must be less than or equal to the system date. The date must fall within the open financial year.
Finance Book	Use the drop-down list box to select the code identifying the finance book in which the accounting entries are to be posted. The finance book must have been defined in the “Create Finance Book” activity of the “Organization Set Up” business component. The system lists the finance book in the ascending order and the displays the first finance book by default on launch of the page.
Numbering Type	Use the drop-down list box to select the numbering type for the login organization unit and the “ASRR” transaction type. The numbering types must have already been defined in the “Create Numbering Class” activity of the “Document Numbering Class” business component and must be in “Active” status as on the Transaction date. The system displays the numbering type set as default for the transaction in the “Document Numbering Class” business component.

Click the “Set” pushbutton to define the revaluation rule.

The system generates a unique soft revaluation run number.

The system updates the status of the soft revaluation run number to “In Process”.

The system updates the login ID of the user to the last modified by and the system date to the last modified date, if the rule has been modified.

The system updates the login ID of the user to the created by and the system date to the created date if the rule has been created.

The system displays the following :

Created By	The login ID of the user who created the revaluation rule.
Created Date	The date on which the revaluation rule was created.
Last Modified By	The login ID of the user who last modified the revaluation rule.
Last Modified Date	The date on which the revaluation rule detail was last modified.

To proceed, carry out the following

Select the “View Soft Revaluation” link at the bottom of the page to view the soft revaluation details.
Select the “View Run Status” link at the bottom of the page view the revaluation run status.
Click the "Attach Notes" link at the bottom of the page for attaching notes.

Setting revaluation rule – An overview

You can also modify the revaluation rule that has been already set. You can revalue the assets either upward or downward. You can enter a new number identifying the revaluation rule or seek the help provided to modify the rule details already available. You can also revalue the cumulative depreciation of an asset. You must select the code identifying the depreciation book for revaluing the cumulative depreciation. The assets can be revalued based on the asset cost or the revalued cost of an asset. You can also select the option by which the assets are to be revalued. If the option chosen is index option, based on the index option you have to provide the index values in the multiline.

This page also allows you automatically run a soft revaluation run. You can enter the date on which the revaluation must be processed. You must enter the code identifying the finance book in which the postings are to be made and the numbering type based on which the revaluation run number is generated. The system updates the status of the revaluation run number to “In Process”.

The system updates the login ID of the user to the last modified by and the system date to the last modified date. The system also displays the creation details of the revaluation rule.

Example

Revaluation Option

The various revaluation options available are By Amount, To Amount, Percentage, Index Option.

Revaluation Basis	Original Asset Cost	Revalued Cost
Asset Cost	20,000	30,000
Method
Revalue By Amount (10,000)	30,000	40,000
Revalue To Amount (50,000)	50,000	50,000
By Percentage (10%)	22,000 (20,000+2,000)	33,000 (30,000+3,000)

Index Option

Let us see the revaluation of the asset for each indexing option.

The various index options available are calendar option, age option, financial year option and the date option.

Consider the following

CY	1995	1996	1997	1998	1999	2000	2001	2002
Age	1	2	3	4	5	6	7	8
Index (CY)	100	105	110	120	130	140	150	160

The cost of the asset as on 01/01/1995 is 1,00,000

Assumption

If the revaluation is based on the asset cost, then the base year will be the asset acquisition year.

If the revaluation is based on the revaluation cost, then the base year will be the year on which the assets were revalued.

Calendar option

I Revaluation on 01/01/1998 is (120/100) * 1,00,000 = 1,20,000 where 100 is the index of the base year which is 1995.

II Revaluation on 01/01/2000 is (140/100) * 1,00,000 = 1,40,000.

If the assets are purchased on 01/01/1997, then

Revaluation on 01/01/2000 is (140/110) * 1,00,000 = 127272.7 where 140 is the index of the base year which is 1997.

Age Option

The cost of the asset is 1,00,000 and was purchased in 1995.

Revaluation in 1998 (Year 4 of the asset) is (120/100) * 1,00,000 = 1,20,000.

Revaluation in 1999 (Year 5 of the asset) is (130/100) * 1,00,000 = 1,30,000.

Financial Year option

The revaluation for the financial year is the same as the calendar year revaluation but the calculation is based on the financial year.

Date Option

Start Date	End Date	Index
01/01/1995	30/06/1995	100
01/07/1995	31/12/1995	110

The revaluation is calculated for the asset based on the indexes provided for the date range.

What you can do in this page

Specify revaluation type

Basis of revaluation

Specifying methods of revaluation

Specify the index option

Specify revaluation type

You can specify the nature in which the assets must be revalued.

Set the “Revaluation Type” field to “Upward” to revalue the assets upward.
Set the “Revaluation Type” field to “Downward” to revalue the assets downward.

Basis of revaluation

The assets can be revalued bases on the asset cost or the revalued cost.

Set the “Revaluation Basis” field to “Asset Cost” to revalue the assets based on their original cost.
Set the “Revaluation Basis” field to “Revalued Cost” to revalue the assets on their last revalued cost.

Specifying methods of revaluation

You can revalue the assets based on various options.

Set the “Revaluation Option” field to “Indexes” to revalue assets based on indexes.
Set the “Revaluation Option” to field “Percentage” to revalue assets based on the percentage value.
Set the “Revaluation Option” to field “By Amount” to revalue assets by a fixed amount.
Set the “Revaluation Option” to field “To Amount” to revalue assets till a fixed amount.

Specify the index option

If the revaluation option is indexes, then indexing options can be selected for revaluation.

Set the “Index Option” field to “Calendar Year” to revalue using the calendar year index.
Set the “Index Option” field to “Age” to revalue using the age index.
Set the “Index Option” field to “Financial Year” to revalue using the financial year index.
Set the “Index Option” field to “Date Range” to revalue using the date range index.