Revaluation of an Asset

This is an advanced function that provides a simple means of changing values for assets and liabilities without the need for manually creating complicated journal entries - the system creates the entries

This function is normally used to alter the current value of land, buildings, investments, etc

Step 1: Revalue Assets and Liabilities

1. Transactions
   
2. Revalutaion menu option
   
3. Enter a date for the revaluation - this is usually the end of the financial year
   
4. From the drop down list choose an account that will be receiving the resulting revaluation amount - this would normally be an equity type account such as Revaluation of Assets
   
5. Select Journal Type
   
1. Management Only
   
2. Accounting Only
   

vi. The system will display a list of assets and liabilities (except banks, trading stock, GST clearing account and debtors/creditors control accounts) as at the nominated date in a tabular form - enter any required revised values in the New Value column

vii. The amount of the revaluation will display in the Difference column

viii. Click OK to process the revaluation

ix. Click OK to the Information message: ' Revaluation journal entries processed'

 

Click on the Journal toolbar option to see the journal entry created

Note: To see asset revaluation reflected on the Asset and Liabilities (Net Worth) Report, run any report based on the same Journal Type selected. i.e. Management or Accounting

To reverse a revaluation, click on the Journal toolbar option and delete the relevant journal transactions.

Article ID 1970