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.
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