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Former Member

asset revalue

Hello all,

I want to that in revaluation how we can post depreciation amt. to P& L a/c before and after revaluation the dep amount should got in B/s A/c.

how this process can be done?

suggest

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2 Answers

  • Oct 13, 2008 at 07:49 AM

    Hi

    Check the below path

    SPRO-Financial Accounting-Asset Accounting-Special Valuation-Revaluation of Fixed Assets-

    Check all the nodes here.

    Srinivas

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    Former Member
    Nov 30, 2012 at 03:08 PM

    Hi prem,

    Configuration Steps for Revaluation

    Goto OABW enable Revaluate APC and Depreciation for required Dep area

    Goto OAYR Enable post revaluation option.

    Maintain account determination for Revaluation

    Goto ABAW revalate the assets.

    Revaluation of asset based on two ways

          1.periodic revaluation

          2.Price index series

    while Revaluation the system generate an accounting like

              Depreciaiton revaluation account Dr

                   TO Acc.dep Revaluation account

    at time of revaluation the new values are not updated to G/l accounting

    during the Depreciation Run (AFAB) only the new values get Updated  to G/L.

    Regards

    Chakri

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    • Saurav,

      I don't have ready setup to run a test, but I have gone through the scenario, and it seems for Chilean accounting regulations, this is a mandatory requirement to calculate your materials' replacement costs once every half year.

      The process goes like this, and there are prerequisite to run replacement cost valuation, and if those are not maintained at Material Master Records, then I afraid even we can use standard functionality, may be this year they can start maintaining it, and going forward every month they can run the program once per posting period, assuming Fiscal Year - 1st Jan to 31 Dec.

      If the market price determination program records a replacement cost for a material, the

      system sets a hidden flag in the material master that shows that a market price has been

      determined for this half year (this feature is relevant to Chile only).

      Also it need to be maintained  separate material, one for Domestic material and other for Imported material, as imported material will cross check with exchange price.

      You run this program every month end, then the market price determination program sets the flag for each material that it has covered, and the inflation index adjustment program calculates inflation on all the other materials.

      Even if they need to report this year to tax per inflation, they can use their traditional way, which is a hard way, by calling all the Material valuation report, and get the highest price PO,Contract, agreement, and have 3 G/L account based on your material material class maintained, and process offset entry to Tax as inflation JE.

      I am not sure of any other way in which standard functionality can be supported, if prerequisite are not maintained.

      Please also share your thought process, what is your route to cover this scenario ?


      Best Luck,

      Nishan Dev