NetAsset - True Up Revaluation
Overview
When an asset is discovered to have been capitalized with incorrect information mid-life, resulting in inaccurate depreciation, a true-up revaluation corrects the accounting impacts without reversing historical activity. The true-up adjusts current period beginning balances to reflect what they should have been had the correct information been entered from inception. Historical depreciation information is retained in historical depreciation lines, and the system creates a true-up line linked to the revaluation entry. The system records any differences against depreciation expense. Future period schedule lines are regenerated based on the corrected asset information to ensure subsequent depreciation entries are calculated and booked correctly.
For organizations using Multi-Book accounting, a workaround process is available to target a specific depreciation schedule when performing a True Up revaluation. This process is supported both through the revaluation proposal record user interface and through CSV import directly to the NetAsset Revaluation Proposal record.
Prerequisites
Before performing a True Up revaluation, confirm the following conditions are met:
- The accounting period must be open.
- The revaluation must be entered prior to the month-end depreciation run.
- The asset may not be in a status of "On Hold."
Step-by-Step Process
- Navigate to the NetAsset record requiring revaluation and click the Revalue button.
- In the Revaluation Type field, select True Up.
- Update the following fields as necessary for the asset revaluation:
| Field | Description | Example |
| Effective Revaluation Date | The start date of the period when the revaluation should take effect. The true-up defaults to the first period without a journal entry recorded. | 06/01/2023 |
| Depreciation Method | The depreciation method that should have been applied to the asset since the in-service date. | Straight Line |
| Capitalized Asset Value | The corrected capitalized asset value as of the in-service date. | 1,843,500 |
| Accumulated Depreciation at In-Service | The corrected accumulated depreciation as of the in-service date. This field typically applies to mid-life asset capitalizations. | 20,000 |
| In-Service Date | The correct in-service date for the asset. | 01/01/2023 |
| Useful Life at In-Service | The corrected useful life at the in-service date. This field auto-adjusts when the Remaining Useful Life field changes. | 48 |
| Remaining Useful Life | The corrected useful life at the effective revaluation date. This field auto-adjusts when the Useful Life at In-Service field changes. | 43 |
| Residual Value Estimate | The residual value estimate. Must be less than the current net book value and greater than or equal to zero. | 10,000 |
| True Up Clearing Account | The GL clearing account used to route any changes to the asset's gross value through as part of the True Up journal entry; defaults to the fixed asset proposal clearing account associated with the asset type. | 1690 Fixed Asset Proposals (Clearing) |
| Re-Establish Go-Live Clearing Account | Select this checkbox if the asset was migrated into NetAsset at go-live and the corrections made in this True Up should also update the original go-live clearing account entry that established the asset's opening balances. | 🗸 |
| New Gross Asset Value | When Manually Adjust Balances is selected, the new gross asset value to adjust the book value. | 1,840,000 |
| New Accumulated Depreciation | When Manually Adjust Balances is selected, the new accumulated depreciation to adjust the book value. | 258,000 |
| Manually Adjust Balances | Select this checkbox when the system-calculated balances do not match your audited figures and you need to directly enter the correct New Gross Asset Value and New Accumulated Depreciation amounts rather than having the system derive them from the corrected asset inputs. | 🗸 |
| Revaluation Note | A brief description of the basis and adjustments made for future reference and support. | Correction of original useful life |
- Verify all revaluation inputs and confirm the new financial information fields are correct for the current period, then click Revalue Asset.
- Return to the asset record and refresh the page until the Processing Status no longer displays "Processing Revaluation..."
- The system splits the Effective Revaluation Date Period into two entries: one to record the GL impact of the revaluation and one to record the normally scheduled depreciation.
- Click the hyperlink to the NetAsset Revaluation Entry to view how the system reverses the old asset G/L impacts and establishes the new G/L impacts.
- For more information on how the amounts in the Revaluation Entry, please review the Explanation of the True Up Amounts article
- On the asset record, the system also creates a NetAsset Revaluation record, available on the Revaluations subtab, to preserve historical values before and after the revaluation.
- Click the Edit link for the NetAsset Revaluation record in the sublist to view the asset information before and after the revaluation.
Once the revaluation entry has run, complete the following final steps:
- Reconcile the True Up Clearing Account. If a balance remains in the clearing account after the revaluation posts, coordinate with your accounting team to clear it.
- Review the depreciation schedule. On the asset's Depreciation Schedule subtab, verify that future period amounts reflect the corrected asset information.
- Run month-end depreciation as normal.
Multi-Book True Up
When the Multi-Book feature is enabled and an asset has alternate depreciation schedules, the True Up revaluation must identify which accounting book's schedule to correct. The schedule is selected from a list field offering the following options:
| Option | Result |
|---|---|
| - All - | Applies the True Up to the main schedule and every alternate schedule. |
| - Main - | Applies the True Up to the main schedule only. |
| Alternate 1 (etc.) | Applies the True Up to the specified alternate schedule only. |
The Asset Revaluation page — reached from the Revalue button on the asset record — does not offer the True Up revaluation type once an alternate schedule is selected. A True Up that targets an alternate schedule must therefore be created on the NetAsset Revaluation Proposal record, either directly in the user interface or through CSV import.
Using the Revaluation Proposal Record
- Navigate to NetAsset > View Asset Registers > Revaluation Register > New.
- In the Asset field, select the asset requiring the True Up.
- Set Revaluation Type to True Up.
- In the Schedule field, located in the Primary Information section alongside Revaluation Type, select the depreciation schedule to correct.
- Complete the remaining True Up inputs and save the record.
- The form reloads after the Asset and Revaluation Type are selected so the current asset values can be loaded. Wait for the Before Revaluation values to populate before entering the remaining inputs.
- If the Schedule field is left blank, it saves as - All - and the True Up is applied to the main schedule and every alternate schedule.
Using CSV Import
To perform a Multi-Book True Up via CSV import, create the NetAsset Revaluation Proposal records directly using NetSuite's CSV Import tool. In addition to all standard True Up fields, the Schedule field must be populated to identify which depreciation schedule the True Up should target.
- Prepare the CSV file with all required True Up revaluation fields. In the schedule column, enter the value exactly as it appears in the Schedule list — - All -, - Main -, Alternate 1, and so on. The list uses these generic names even if your alternate schedules have been renamed elsewhere in NetAsset.
- Navigate to Setup > Import/Export > Import CSV Records.
- Select NetAsset Revaluation Proposal as the record type.
- In Field Mapping, map the schedule column to the Schedule field.
- Complete and submit the import, then approve each revaluation proposal to trigger processing.
If the schedule column is omitted or left blank, the field saves as - All - and the True Up is applied to the main schedule and every alternate schedule. Include the column explicitly when targeting a single book.
Callouts
When to Use True Up vs. Other Revaluation Types
Use the True Up revaluation when the original information entered at capitalization was incorrect, such as the wrong cost basis, useful life, in-service date, or accumulated depreciation at in-service. If the asset was set up correctly but something has changed going forward, use Prospective (No GL Impact) to adjust future depreciation without a GL entry, or Write Up/Write Down to recognize a specific impairment or fair value change. Use Place Depreciation On Hold to temporarily pause depreciation, and Place Back In Service to resume it.
The True Up revaluation type is not available for assets that use usage-based depreciation or extended life formulas, regardless of the multi-book configuration. When performing the True Up via the Revaluation UI, the Depreciation Schedule field appears only when the asset has accounting books assigned and the Multi-Book feature is enabled in NetAsset Global Settings.
