NetAsset - Prospective (No GL Impact) Revaluation
Use Case: Through the useful life of an asset, there may be events or changes that require an adjustment to the original depreciation schedule. These changes can cause a reassessment or change in multiple components related to the asset, such as the following:
- Depreciation Method
- Useful Life
- Residual Value Estimate
- Net Book Value
The Prospective (No GL Impact) asset revaluation is called the prospective revaluation because it only affects the depreciation schedule on a go-forward basis – no journal entry is required to perform the revaluation.
Prerequisites: Asset revaluations must be entered in NetAsset within the month and prior to month-end depreciation.
It’s strongly advised not to manually modify schedule-impacting details after journals have been run, or to directly add or delete schedule lines, as doing so can potentially cause issues with the record.
If changes are necessary, please use the Revaluation process to ensure updates are applied correctly.
STEP BY STEP PROCESS
- Navigate to an NetAsset record where the revaluation is to be recorded and click the Revalue button
- On the Asset Revaluation page click the down arrow on the Revaluation Type field and select Prospective (No GL Impact)
- Next, update the fields as necessary for the asset revaluation
Field | Description | Example |
Effective Revaluation Date | The start date of the period of the revaluation should take place. Defaults to the first period without a journal entry booked. | 03/01/2020 |
Depreciation Method | Change the method by which the asset will be prospectively depreciated. | Straight Line |
Useful Life at In-Service | Adjust to the useful life of the asset to extend or retract the current useful life. | 48 |
Remaining Useful Life | Adjust to the remaining useful life of the asset to extend or retract the current useful life. | 36 |
Residual Value Estimate | Update the residual value estimate to be any number less than the current net book value and greater than or equal to 0. | 10,0000 |
Residual Value Percentage | Update the residual value percentage to be any number between zero and 100 to automatically populated the residual value estimate based off the original net book value. | 50% |
Revaluation Note | Provide a brief description of the basis and adjustments made with the revaluation for subsequent support and reference. | Replaced ignition extending useful life. |
- After double-checking inputs for the revaluation, click Revalue Asset
- You will be navigated back to the asset record where you can refresh until the Processing Status no longer reads Processing Revaluation...
- The schedule from the Effective Revaluation Date onward should reflect the updated Depreciation Method, Useful Life, Residual Value Estimate, and the newly calculated Depreciation Amount.
- An NetAsset Revaluation record will be saved on the Revaluations subtab of the asset to saved historical data before and after the revaluation.
- Clicking the Edit link will reveal the asset information both before and after the revaluation