Revaluating an asset

Hello All,
Our client wants to implement the scenario of revalauating the fixed asset according to Indian accounting standard AS28. While going through the Help documents and the posts on forums i came to know that we might have to create a seperate depreciation are for revalauating the asset.
We are allready using 3 depreciation areas Book Depreciation, Depreciation as per IT Companies act and Book depreciation in group currency.
My doubt do i still need to create a new revaluation area for revaluation of the asset. Or else we can use the existing depreciation areas.
Thanks
Nitin
Moderator message: not directly related to ABAP development, please have a look in the respective functional forum.
Edited by: Thomas Zloch on Jan 25, 2011 10:22 PM

Hi Blaz,
Thank you for your reply. I am trying to increase the value of the asset in depreciation area 02, because due to wrong depreciation key it got fully depreciated last year in 02. I want to add the value to 02 which should have not been depreciated in last 2 years. Is there a way to increase its value using ABAA?
Thank you,
Karol

Similar Messages

Revaluation of Asset for past year

Hi,
My client had asset revaluation( reduction in asset value) in Dec. 2009. Because of lack of resource at that time, they carried out this revaluation in strange way.
They didn't reduce the asset value in APC account of asset but to report the effect of revaluation in their P& L and balance sheet they passed manual JE between newly created depreciation and accumulated depreciation account. This accumulated depreciation account is not reconciliation asset account in system.
They closed their books for 2009.Now they want to show this revaluation in asset value by opening 2009 books and reversing the manual entry in system.
I know that individual account balance will change by doing this in ABAW but the total value in Asset and Gross profit will not change. They are fine with that. I tested into the system its working.
Now my problem is they had also carried out depreciation run for 2010 based on old values of asset in sap. and adjusted balance sheet by passing manual entries for two month.
Now if I change value of asset in 2009 Dec. System is now allowing me to rerun (repeat run in AFAB) the depreciation for JAN and FEB to post the new values in depreciation and accumulated depreciation account based on new value.
When I tried to run depreciation for march in test run system adjusted values for JAN and FEB. in March based on new values posted for Dec.2009.
Is there any way I can rerun depreciation in Jan and Feb to post new values based on posted Dec values? The whole purpose is to correct the posted values in Asset apc account, depreciation account and accumulated depreciation account starting in Jan 2009 and onwards based on reevaluated asset values in Dec2009.
If anyone knows the way to carry out this, I appreciate the guidance.
Thank you.

Hi Murali,
Thank you for your reply.
My only concern is - I don't want to affect the other depreciation areas (in case anything changed in their depreciation keys).
Is there a way to just open past years only for this particular depreciation area and to rerun depreciation just for it?
I thought of OAAR transaction - undo year end closing by Depreciation area - just to focus on it. Do you think it might work the same as AJRW, or should I use AJRW?
Can I run AFAR only for the selected depreciation area and it will not affect any other depreciaton area? We are using 4.6C version.
Thank you,
Karol

Depreciation on revaluated fixed asset

Dear Experts,
I have revaluated fixed assets. My query is that, while posting depreciation on this revaluated FA, the depreciation should be calculated from the asset value date mentioned in the master record of the fixed asset or system should calculate depreciation from the asset value date mentioned in the 'revaluation posting transaction'? How it is calculated in the general practise in asset acccounting? This depreciation should be calculated on the new acquisition and production cost.
Please help
Thanks and regards
Aniruddha.

DEAR
if you using AB01
the config for posting revaluation in book dep area 01 is as follows:
> in the dep area 01 mark fields,revaluation,transfer of reserve and rev ord dep as all values allowed.
>in specify intervell and posting rule mark revaluation button on.
>AO90 assign the gl account in the asset classes which have to be revalued in assign g/l accounts area.
>   if going for one time rev .give seperate rev measure.in define rev measure screen.
>   post revaluation in abaw.
>   while running afab the amount will get posted make sure it is planned posting run
MAKE SURE THIS FACT AB01 INCREASES YOUR BOOK VALUE BY REVALUED AMOUNT. BUT IF YOU WANT NEW VALUATION POST NEW VALUATION THROUGH AR29N
if you using AR29N go to new valuation of asset tab.
for using that you 1st need to create a transaction type in AO73 with credit transaction, doc type --aa , post gross ,do not post to affiliated company. go back and limit transaction to dep area.
define reval measure
now revaluate asset in AR29N
regards
rohit

Information on guidelines in ifrs on revaluation of assets

what all information is necessary to successfully implement ifrs for assets. for e.g studying as 10 and as 28 etc. what all other informations should be kept in mind for successful implementaion for ifrs in sap. which ifrs is for assets its valuation and revaluation?
what are the guidelines of revaluing assets under ifrs for assets.

Hi,
Please refer the below IAS Standards....
IAS 23
IAS 40
IAS 36
IAS 28
IAS 16
Regards,
Krishna Kishore

Reporting of Depriciation & revaluation of assets

Hi Expert
1.I have posted dep run till Feb'09. However since there is a divestment of investment & holding comp take over the assets of Subsidiary i need to add the assets from 30.09.2008 from Subsidiary & report the depriciation for Oct'08 to dec'08 . Is it possible
2. The new assets to be taken from Subsidiary with a higher value i.e at revlalued amount . Can anybody confirn the T code revaluation of the existing assets .
Regards
Saroj

HI boss
in case of upward revaluation reserve what is the standard transaction type to be used . while i have tried all of them the error is revaluation measure 00 not found . can u pls brief me more .
Secondly i have not get the answer for my first querry . Whether the dep for Oct;08 can be posted even if the dep run is posted for feb'09
Thanks is advance
Regards
Saroj

Revaluation of assets

Hi all,
How to revaluate the assets throu index? what is the main purpose of asset index? what impact will be on the depreciation and interest if the asset indexed?
kindly give an idea.
Raghav

You can use the Recalculate Depreciation function to do so use t-code AFAR, which you can also start as a test run, enables you to recalculate the planned depreciation for a large number of fixed assets. The planned depreciation is adjusted for the fixed assets concerned. The new planned depreciation is used as the basis for subsequent depreciation posting runs using t-code AFAB. I hope this will meet your requirement.
Regards

Asset Revaluation issue - Reval of Current year depreciation

Hi All,
We are setting up the system to do asset revaluation for our company code in South America. My client wants to
revalue the assets from Jul'09 to Dec'09.
1) We have maintained inflation indexes for the last day of each period in the year 2009.
2) Maintained Posting Variants and Time Base and Exposure variant accordingly for all the periods and year as 9999.
3) Assigned the appropriate Time base and exposure variant in the period control method.
4) Maintained the Revaluation Areas:
a) Area 01 - Book
b) Area 02 - Inflation Adj (Revaluation Area)
c) Area 03 - Derived (Area 01+Area02)
d) Area 22 - Infla Adj in Group Currency
5) Maintained the Revaluation key and assigned it to the relevant Asset classes by Depreciation Area (02 and 22)
6) Maintained the transaction types as below:
897 - Revaluation (downward) current year
892 - Revaluation (upward) current year
891 - Revaluation (downward) prior year
893 - Revaluation (upward) prior year
7) Maintained the Inflation Method and last revaluation date on Inflation method as 01.07.2009.
8) We have also activated the Revaluation after useful life.
With this setup in the system I took a test asset which had depreciation postings for the period 08 and 09. When I
ran the J1AI - Revaluation (Inflation) Program in the test run mode the outcome was that the APC value of the asset
was being revalued and Revaluation of Prior year Depreciation but not the Revaluation of current year
Depreciation. Can anyone tell me why current year Depreciation is not being revalued.
Am I doing something wrong process-wise or configuration-wise?
Please help me in resolving this issue.
Regards,
Raj

Hi Rajesh Phanibatla,
I've always happened that Issue. But what I realized is that although the program output (J1AI) does not show you nothing on "Rev of CY Depn", the system calculates. This only happens for the first month of adjustment (In your case, Aug 08).
Try checking the test asset with the Assets Explorer (AW01N) just after running the adjust (J1AI) in background process (NO test mode) at 31.08.2009. See if the area Area 02 - Inflation Adj (Revaluation Area) on "Posted values" tab shows something different to zero on month 08 with "Planned" status.
Then, for the adjustment of the following months, the output of the program will show you the "Rev of CY Depn" value.
If you want, let me know your email to show you a presentation (PowerPoint in spanish) that has screens that I captured on that occasion that happened to me.
I hope this is your case and can help you that I said.
Good Look!
PD: Sorry for my bad english :S

Add depreciation area to old assets (revaluation area)

Hi guys,
I've created a new depreciation area for setting revaluation of assets. This new dep area only contains revaluation of assets (we'll only have revaluation and depreciation of this revaluation in this new area), so I've configured it to manage only revaluation values. Acquisition values are not allowed.
In OABC i've put "00" in the area where this new area takes values from, due to i don't want thhis new area to copy acquisitions values from area 01.
I've made the rest of the configuration also, to support revaluation transactions (mov 800) in this new area. But, I've got 2 problems now:
1. The new area i configured is missing when creating a new asset in AS01. However, when using AS91 the new area shows up. Any idea of why this happens that way?
2. I cannot add the new area in old assets. When using AFBN a message appears: "Depreciation area 20, which you want to create as a new depreciation area in chart of depreciation PVPE, has no depreciation area defined for value takeover. This may be be correct for normal operation, however for the purposes of creating a new depreciation in the productive system, you have to enter a depreciation area whose values are used as base values for the new area."
Message makes sense, because my new area is not copying values from any area (in tcode OABC i defined 00 as dep area source). The question is.. is there any additional tcode where i can add the new depreciation area to old assets?
Thanks in advance.
Eduardo

Hi,
there are the following steps:
1. Create Depreciation area via OADB.
2. Activate Depreciation area via OAYZ.
3. Automatic opening of new depreciation are via AFBN and program RAFABNEW :
   3.1 - Indicator: Leave values initial = not ticked.
           The system will copy all the past years values from
           depreciation area 01.
3.2 - Indicator: Leave values initial = ticked.
           Set this indicator if you want to open the newly created
           depreciation area without any values i.e. blank.
4. Recalculate depreciation via AFAR and program RAAFAR00.
Following notes for information:
430618     Procedure for setting up new depreciation area
857601     Parallel currency area and RAFABNEW
301113     Restrictions of RAFABNEW
A Documentation you can find in SE38 entering the   RAFABNEW and press the button documentation.
regards Bernhard

How to post/configure revaluation of Fixed Assets

hello gurus,
i want step by step customization for revaluating fixed assets.
regards,
anand

Hi,
For revaluation of asset we have two options available
1.Indexed Replacement:In this case change in value of asset is posted automatically at the time of depreciation posting.In this method we have to define index series.Follow the steps given below
a. Deifne dep area (OR64) In this step we determine the dep area in which we want to manage revaluation of assets.
b.Define Index series(OAV5)
c.Enter index series in asset class or asset master record(as02) for the specific dep area.
2.Revaluation with Inflation management: In this case either we can go for one time revaluation or periodic revaluation.

Urgent!!!!!!!! Assets revaluation

Hello Experts,
I am working on revaluation of assets since 2004 for newly setup depreciation areas 10(Acrs/Macrs) and 11(Alt Min). I haven't done this task before and am new to it. Can someone help me in understanding the concepts and how to do it and what care should be taken when we do this task?
If you have any good material or documentation on assets revaluation please send me at [email protected]
Will award points duly.......
Regards,
Sriram

Try to run the transaction ASKB - APC Values Posting if this generate the posting

Asset revaluation

Hi ,
I have one task .if u have answer pls help me.
The task is we have 4000 no of assets in books. The depreciation was run upto October end. We need to revalue the assets w.e.f. April 06. This should be done on December 1st. The revaluation values are manually arrived. They are to be updated in the system w.e. f April 1st. And the depreciation also should get affected from April 1st on the revaluated values.
Can you think it over on this?
Thanks &Regards
Shirisha

Hi Shirisha,
There are two things you need to do here.
1. Perform Manual Acquisition Adjustment using transaction code ABSO. It is important that you state correctly the "Transaction Type" eg. 892(Revaluation (upward) current year) or 897(Revaluation (downward) current year)
2. Next, Perform Manual Depreciation Adjustments using transaction code ABAA. Also ensure you use correct "Transaction Type" please. (i.e 640 - Unplanned depreciation on old assets data).
I hope the above helps.
Do not forget to award the points please.
Regards,
Jacob

Asset revaluation ar29n

Hi,
can any one help me to do the revaluation of an asset. what r the basic customizing setting to b made in IMG. I have fallowed this link which is basically aussee settings. iam havng problems with transaction types and revaluation measures. plz lemme know the exact steps to fallow
http://help.sap.com/saphelp_erp2004/helpdata//EN/54/ed813ee3d32b44e10000000a114084/frameset.htm
any inputs will b helpful.
thanks
genie

Hi,
It appears from the error message you are trying to revalue athe asset in the peirod 1. Since the Depreciation is already posted on this asset for the periods upto 5. If you want to add the value to the asset in the period 1 use T-Code F-90. In this case the whole depreciation upto period 5 will be charged in the current period.
Revaluation can not be done retrospectively.
Regards,
Vijay

How to configure asset impairment ECC6.0

Hi,
Our client is looking to enable asset impairment functionality in SAP. An asset impairment is different from a revaluation. Revaluation occurs when a business adjusts the assets prices from a mark to market perspective. An impairment occurs when the business realizes the assets it possessu2019 are worth more or less then what is declared on their balance sheet. SAP FA has standard transactions for revaluation of assets and allows to determine the GL accounts in transaction (AO90 under revaluation account assignment) but nothing for impairment.
I know there are several options listed on the forum to post an impairment but none provide the end result I am looking for
The closest option I have is using ABAVN with a partial retirement (but the posting is wrong).
The client provided the following example:
Facts:
u2022Fixed asset with original cost of $100
u2022Original useful life of 10 yrs
u2022Straight-line depreciation
u2022Impaired to $50 at end of 2nd year (after $20 of depreciation) expense
u2022No expected change in useful life
The related posting must be:
-50 cr. FA acquis
20 dr. Acc. Depr.
30 dr. impr loss (P&L)
After the impairment posting the depreciable base is 50, original useful life is 10, and remaining useful life is 8.
The asset would continue to depreicate at a rate of 6.25 per year for 8 years.
Has anyone configured this in their system?
Thanks,
Kuldeep

Hi,
Please find detailed information provided by SAP.
Impairment
Prerequisites
● If you are using the new depreciation calculation, you have activated the FIN EA-APPL add-on.
● You have created the following new transaction types:
○ Transaction type for impairment according to IAS36 (debit) for current year (transaction type group A2)
○ Transaction type for impairment according to IAS36 (debit) for prior year (transaction type group A1)
○ Transaction type for impairment according to IAS36 (credit) for current year (transaction type group A2)
○ Transaction type for impairment according to IAS36 (credit) for prior year (transaction type group A1)
● You create the transaction types in Customizing:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Special Valuation® Revaluation of Fixed Assets ® Revaluation for the Balance Sheet ® Define Transaction Types for Revaluation
● For each depreciation area, you have specified that impairments can be posted both as revaluation of acquisition and production costs and as depreciation revaluation:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Special Valuation® Revaluation of Fixed Assets ® Revaluation for the Balance Sheet ® Determine Depreciation Areas
● If you want to perform different impairment postings depending on different accounting principles, then you have restricted the transaction types to depreciation areas that use the same accounting principles:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Special Valuation® Revaluation of Fixed Assets ® Revaluation for the Balance Sheet ® Define Transaction Types for Revaluation ®Limit Transaction Types to Depreciation Areas
● For posting impairments in the general ledger, you specified for each depreciation area that revaluation is taken into account during the depreciation posting run:
○ For new General Ledger Accounting under Financial Accounting (New) ® Asset Accounting ® Integration with General Ledger Accounting ® Post Depreciation to General Ledger Accounting ® Specify Intervals and Posting Rules.
Process Flow
1. You use the asset list to create a worklist containing the relevant assets. From the SAP Easy Access screen, choose Accounting ® Financial Accounting ® Fixed Assets ®Environment ® Worklist ® Generate. ChooseImpairment Posting as the task for the worklist.
2. You specify how the system should post the impairment:
○ As negative revaluation of the acquisition and production costs to reduce the acquisition value (standard setting)
○ As depreciation revaluation, that is, as an increase in the amount of accumulated depreciation
3. You specify the transaction types that the system uses to generate the impairment postings for the current year and the previous year.
4. You specify how the system should distribute the impairment amount to the individual assets. You have the following options:
○ Distribution of the impairment amount dependent on the net book value
The system distributes the total amount of the impairment proportionally based on the net book value of the individual assets.
○ Customer-specific distribution of the impairment amount
The system distributes the total amount of the impairment based on your customer-specific specifications that you define using the Business Add-In (BAdI) BAdI for Distribution of Impairments (FIAA_IMPAIRMENT_DISTR_CUST). You can also use this BAdI to import an external file in which you have specified the impairment amounts at the level of the individual assets.
○ Distribution of the impairment amount to a net book value of zero
Regards

Revaluation not picking up all documents

Hi
The revaluation program is not picking up all foreign currency GRIR documents. I've checked and the exchange rates are different and the items are open, but when we run the revaluation program it skips certain documents. Has anyone ever come accross this issue?
Thanks

I think that you posted this on the wrong forum. This is the asset accounting forum. Revaluation usually refers to the revaluation of assets. I think that you are asking about currency revaluations. You shold post your question in the correct forum.

System Picks up wrong Asset valuation date

Our fiscal year is OCT- SEP. Asset Revaluation took place in FEB 2010.
To post revaluation, I use transaction ABAW and Transaction type 897 for the revaluation with Asset date FEB 2010. But when I run depreciation System posts new adjustment considering this revaluation occurred as in Oct 2009, First month of fiscal year. (Even I put Asset value date of FEB 2010 in ABAW)So I am getting error in new depreciation posting.
I donu2019t know why it is calculating revaluation based on Oct 2009 book value instead of Jan 2010.
I appreciate your valuable inputs.
Thank you.

Is that anything to do with period control settings?
Kindly let me know if someone knows about asset value date setting in period control data for revaluation.

Revaluating an asset

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