How to revalue a fixed asset in iplicit?

This article covers how to revalue a fixed asset in iplicit's Fixed Assets module using the 'Revalue' movement. Revaluation is used when the carrying value of an asset needs to be adjusted - either upwards or downwards - to reflect its current fair value. iplicit posts the revaluation journal automatically, updating the asset's net book value and the depreciation schedule accordingly.

Before you start

The following must be in place before a revaluation can be processed. If any of these steps have not been completed, set them up first before returning to this article.

Account defaults

The asset group must have both revaluation account defaults configured:

• 'Asset Revaluation Loss' - P&L account; records any loss arising from a downward revaluation
• 'Asset Revaluation Reserve' - Balance Sheet account; records the revaluation reserve

Without both in place, iplicit cannot post the revaluation journal to the correct GL accounts. See How to configure account defaults for fixed assets in iplicit.

Document types and series

The 'Asset Revalue' (ASSREV) document type must be unlocked and a document series must be active, unlocked and dated before the revaluation date. Without both in place, iplicit cannot number or post the revaluation journal. See How to set up document types and series for fixed assets in iplicit.

Asset status

The asset must be capitalised before it can be revalued. The 'Revalue' option only appears in the movement dropdown on a capitalised asset. See How to capitalise a fixed asset in iplicit if the asset has not yet been capitalised.

Recording a revaluation

1. Open the asset record from Assets in the Main Menu, or enter 'Assets' in the quick search
2. Open the relevant asset - confirm the status shows 'Capitalised'
3. Select the dropdown arrow next to the movement options
4. Select 'Revalue'
5. Confirm or update the 'Movement date'
6. Enter a 'Reason' for the revaluation - this field is mandatory
7. In the assets panel, enter the revaluation amount in the 'Net' field - enter a positive value to increase the asset's carrying value, or a negative value to decrease it
8. Select 'Create as draft' to save the revaluation for review before posting, or 'Submit' to post immediately
9. Select 'Discard' if you need to cancel without saving

iplicit creates a revaluation journal updating the asset's net book value by the amount entered. The depreciation schedule recalculates automatically to reflect the new carrying value.

Reviewing the impact on the depreciation schedule

Once the revaluation is posted, open the 'Depreciation book' tab on the asset record to confirm the schedule has updated. If the carrying value has increased, the remaining depreciation values will be higher. If it has decreased, they will be lower.

Viewing the revaluation in the asset record

Once processed, the revaluation movement and its associated journal are visible on the asset record under the 'Movements' tab and the 'Journals' tab respectively.