Revaluation of asset balances in foreign currency

[varun_panicker]

Hi Friends,

We have a requirement wherein business wants to revalue the amounts in the USD depreciation area, not the local currency area.

At a cut off date, the values in local currency depreciation area need to be converted to USD at a cut off rate.

In subsequent month ends, the initial USD values will continue to be maintained at the initial cut off rate, while the subsequent additions will be valued at the month end rate. Simultaneously, the difference of NBV in initial USD values and revalued USD amounts will also need to be shown separately.

Suppose as per initial translation, APC value in INR= 12000, APC Value in USD= 400 @30INR/$. Acc Dep= 600 INR, 20 USD. NBV= 11400 INR, 380 USD.

In July end, rate is 25 INR/$. Suppose INR value after dep is 11300, and dep for the month of July is 100 INR. In USD amounts, keeping the same depreciation terms, we have value after dep= 376.67, dep for the month= 3.33.

Now value INR in USD terms at month end rate 25. Then INR NBV at USD rates is 11300/25= 532. Dep posted in INR at NBV rates= 100/25= 4.

Difference between the 2 values (i.e. INR translated to USD and USD as such), which also needs to be reported:

a. NBV= 532-376.67= 155.33

b. Dep= 4-3.33= 0.67.

We are looking at options like creating new dep area in USD, that will function as a revaluation area, but can the revaluation program revalue a foreign currency dep area? From what standard documentation tells us, revalutation program posts 0 value to foreign currency areas. (not to GL, but in the dep area) Also, there is an existing revaluation dep area in the config. When we try to create a new revaluation dep area, system gives an error that the old one cannot be deleted.

What are the other options that we have vis a vis this requirement? Will a Z report suffice? Business is not looking at GL impact. They just want the figures ready.

Regards,

Varun

[former_member188063]

Hello Varun, If business is not looking at the gl impact and are looking only for the figures, based on the details and from what I understood I would say yes, the Z Report would be the best option.

Once you get all the details from depreciation area like; NBV figures, Dep figures, in local currency you can then translate them into USD with the report.

Hope this is helpful.

Regards,

Sudhakar*