Setting insurance valuation rule

This activity allows you to set a process for valuation of assets. Tell me more.

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

The “Set Insurance Valuation Rule” page appears.

Enter the following fields:

Insurance Valuation Rule No	A unique code identifying the insurance valuation rule (Alphanumeric, 20). Mandatory.
	Help facility available
Rule Desc.	A textual description of the rule (Alphanumeric, 40). Mandatory.
	Zoom facility available

Click the “Get” pushbutton to retrieve rule details.

The system retrieves the details of the rule and the details of the index value.

Policy Type	Use the drop-down list box to select the type of the policy. The policy types must have been defined in the “Create Quick Codes” in the “Quick Code Definition” business component and must be in “Active” status. The system displays “All” by default on launch of the page.
Revaluation Type	Use the drop-down list box to select the method of revaluation from “Upward” or “Downward”.
	Upward – indicates that the asset will be valued on the appreciating value of the asset.
	Downward – indicates that the asset will be valued on the depreciating value of the asset.
	The system displays “Downward” by default on launch of the page.
Revalue Cumulative Depreciation	Check the box to revalue the asset taking into account the cumulative depreciation.
Depreciation Book Code	Use the drop-down list box to select the code identifying the depreciation book that you want to retrieve. All the depreciation books that have been mapped to the login organization unit will be available for selection in ascending order. The system displays “Blank” by default on launch of the page.

Note: This field must not be left blank if the “Revalue Cumulative Depreciation” option is selected.

Revaluation Basis	Use the drop-down list box to select the basis on which the revaluation of the asset is done from “Asset Cost” or “Revaluation Cost”.
	Asset Cost – indicates that the asset is valued based on its original cost.
	Revaluation Cost – indicates that the asset is valued based on the revaluation practices.
	The system displays “Asset Cost” by default on launch of the page.
Revaluation Option	Use the drop-down list box to select the revaluation option from “Index”, “By Percentage”, “By Amount” or “To Amount”.
	Index – indicates that the revaluation is done with respect to an index provided.
	By Percentage – indicates that the revaluation is done based on a defined percentage.
	By Amount – indicates that the revaluation is done based on a fixed amount.
	To Amount – indicates that the revaluation done must not exceed a fixed amount.
	The system displays “Index” by default on launch of the page.

Note: If “Index” is selected “Calendar Year”, “Age”, “Financial Year” and “Date Range” will be available for selection in the “Index Option” field.

If “Percentage”, “By Amount” or “To Amount” is selected “then “Blank” will be displayed by default in the “Index Option”, “Number of Index Years” and “Start Year” fields. “Blank” will also be displayed by default in all the fields of the “Index Values” multiline.

Revaluation Percentage

The percentage of revaluation (Decimal).

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

This field must not be left blank if “Revaluation Option” is selected as “Percentage”.

Index Option	Use the drop-down list box to select the index option from “Calendar Year”, “Age”, “Financial Year” or “Date Range”.
	Calendar Year – indicates that the index with respect to the calendar year will be considered during the revaluation process.
	Age – indicates that the index with respect to the age of the asset will be considered during the revaluation process.
	Financial Year – indicates that the index with respect to the financial year in which the revaluation is done will be considered during the revaluation process.
	Date Range – indicates that the index with respect to the date range in which the asset was purchased will be considered during the revaluation process.
	The system displays “Financial Year” by default on launch of the page.

Note: This field must be left blank if “Revaluation Option” is selected as “Percentage”, “By Amount” or ”To Amount”. This field must not be left blank if “Revaluation Option” is selected as “Index”.

No. of Index Years	The number of years for which you want to enter the index values (Decimal) The number of years entered in this field must be greater than zero.
	Press <Enter> key.
	The system displays the years in the ascending order in the “Index Value” multiline till the value entered in this field is reached.

Start Year	The year from which the revaluation process starts (Decimal). This field must not be left blank if the “Index Option” selected is “Calendar Year” or “Financial Year”.
	Press <Enter> key.

Note: If “Index Option” has been selected as “Calendar Year”, the system displays calendar years in the ascending order from the year specified here.

If “Index Option” has been selected as “Financial Year”, the system displays the valid financial years retrieved from the “Accounting Setup” business component, from the year specified here in the “Index Value” multiline. If “Index Option” has been selected as “Calendar Year”, the system displays the subsequent years.

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). This year must have been defined in the “Create Calendar” activity of the “Accounting Setup” business component and must be in “Active” status.

Note: This field must not be left blank if “Revaluation Option” is selected as “Index” and the “Index Option” is selected as “Calendar Year”, “Age” or “Financial Year”.

Start Date

The starting date in the period for which a revaluation index value is defined (Date Format). The date must be a valid one for the year specified in the “Year” field if “Index Option” has been selected as “Calendar”. The date must be a valid one for the financial year specified in the “Year” field if “Index Option” has been selected as “Financial Year”.

Note: This field must not be left blank if “Revaluation Option” is selected as “Index” and “Index Option” is selected as “Date Range”.

End Date

The ending date in the period for which a revaluation index value is defined (Date Format). The date must be a valid one for the year specified in the “Year” field if “Index Option” has been selected as “Calendar”. The date must be a valid one for the financial year specified in the “Year” field if “Index Option” has been selected as “Financial Year”.

Note: This field must not be left blank if “Revaluation Option” is selected as “Index” and “Index Option” is selected as “Date Range”.

Indexes

The index value with respect to which the revaluation is done (Decimal). The value entered in this field must be greater than zero.

Note: This field must not be left blank if “Revaluation Option” is selected as “Index”.

Click the “Set” pushbutton to set the valuation rule.

The system saves the details of the valuation rule.

The system updates the login ID of the user and the system date in the “Created By” and “Created Date” fields when the rule is defined for the first time. The system updates the login ID of the user and the system date in the “Last Modified By” and “Last Modified Date” fields whenever the rule is modified.

The system displays the following:

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

Prerequisites

“Financial Calendar” must have been defined in the “Create Calendar” activity of the “Accounting Setup” business component.
“Depreciation Book” must have been defined in the “Set Depreciation Book” activity of the “Asset Depreciation Setup” business component.
“Policy Types” must have been defined in the “Create Quick Code” activity of the “Quick Code Definition” business component.

What you can do in this page

Set type of revaluation

Set basis of revaluation

Set the option for revaluation

Revalue asset on the cumulative depreciation value

Set index option

Set type of revaluation

You can revalue an asset by enhancing its original cost or by devaluing the original cost. The type of revaluation is decided based on the individual assets.

Set the “Revaluation Type” field to “Downward” if you want to revalue the asset by depreciating the original cost.
Set the “Revaluation Type” field to “Upward” if you want to revalue the asset by appreciating the original cost.

Set basis of revaluation

You can revalue an asset on its original cost or on the cost after subsequent revaluation. The basis of the revaluation is set based on the business requirements.

Set the “Revaluation Basis” field to “Asset Cost” if you want to revalue on the original asset cost.
Set the “Revaluation Basis” field to “Revaluation Cost” if you want to revalue on the asset cost after revaluing the asset many times.

Set the option for revaluation

You can revalue the asset in many ways. You can revalue an asset based on a predefined index, percentage or an amount.

Set the “Revaluation Option” field to “Index” if you want to revalue the asset based on a predefined index.
Set the “Revaluation Option” field to “Percentage” if you want to revalue the asset based on a defined percentage.
Set the “Revaluation Option” field to “By Amount” if you want to revalue the asset based on a fixed amount.
Set the “Revaluation Option” field to “To Amount” if you want to revalue the asset without exceeding the fixed amount.

Revalue asset on the cumulative depreciation value

You can revalue an asset on its depreciated value. You can also revalue the asset taking into consideration the cumulative depreciation.

Check the box in the “Revalue Cumulative Depreciation” field to revalue the asset considering the cumulative depreciated value

Set index option

You can set the index that you want to use while revaluing the asset. You can revalue the asset using the index with reference to the “Calendar Year”, “Age”, “Financial Year” or “Date Range”.

Set the “Index Option” field as “Calendar Year” if you want to use the index based on the calendar year.
Set the “Index Option” field as “Age” if you want to use the index based on the age of the asset.
Set the “Index Option” field as “Financial Year” if you want to use the index based on the financial year in which the revaluation is being done.
Set the “Index Option” field to “Date Range” if you want to use the index based on the date range during which the asset was purchased.