NetAsset - Revlaution Reason
Overview
The Revaluation Reason record lets organizations classify revaluations beyond the standard revaluation type and record why each one was made. A reason can be limited to specific revaluation types. It can also carry defaults for the proposal: the revaluation accounting method, GL accounts, the Gross Write Down option, and the True Up Clearing Account. When a reason is selected on the Revaluation page or a revaluation proposal, its defaults are applied automatically. This cuts manual entry and keeps similar revaluations consistent.
Revaluation Reasons are kept as a standalone list and selected on the Revaluation Proposal record. The Asset Register and Asset Roll Forward reports offer a column for each reason, so revaluation activity can be broken out by reason for analysis and reconciliation.
Key assumptions
- A Revaluation Reason can be used on any revaluation type, unless you limit it with the Applies To Revaluation Types field.
- Each default on the reason applies only to certain revaluation types:
- Revaluation Accounting Method, Balance Sheet Account, Impairment Expense Account: Write Up and Write Down only
- Gross Write Down: Write Down only
- True Up Clearing Account: True Up only
- On other types, such as Prospective, the reason is used for classification only and no defaults are applied.
- When a reason is selected on the proposal in the UI, every value the reason has replaces the current value on the proposal. Fields that are blank on the reason are left as they are. When a proposal is saved through CSV import or approval, reason defaults only fill fields that are blank on the proposal.
- Each Revaluation Reason column on the Asset Register and Asset Roll Forward reports shows net Write Up, Write Down, and True Up activity for revaluations tagged with that reason. It’s calculated the same way as the standard Total Revaluations column.
Prerequisites
- For a Revaluation Reason to default GL accounts, Allow Override of Revaluation GL Accounts must be enabled.
- For a Revaluation Reason to default the revaluation accounting method, Allow Override of Revaluation Accounting must be enabled.
- For a Revaluation Reason to default the True Up Clearing Account, Allow Override of Clearing Account must be enabled. This setting is in Capitalization Settings and is enabled by default.
Step-by-step process
1. Enable the required settings.
Open the NetAsset Setup page.
- Under Revaluation Settings, check Allow Override of Revaluation GL Accounts to allow account defaults from a reason.
- Under Revaluation Settings, check Allow Override of Revaluation Accounting to allow accounting method defaults from a reason.
- Under Capitalization Settings, confirm Allow Override of Clearing Account is checked if reasons will default the True Up Clearing Account.
Click Save. A reason default is applied only when its setting is enabled. If a setting is disabled, the matching field on the reason is ignored even if it has a value. Gross Write Down has no setting and is always applied.
2. Create a Revaluation Reason record.
Navigate to NetAsset > NetAsset Setup > Revaluation Reasons and click New.
| Field | Description |
|---|---|
| Name | A descriptive label for the reason. The name appears as a column option on the Asset Register and Asset Roll Forward reports. |
| Applies To Revaluation Types | A multi-select list of the revaluation types this reason can be used on. If no types are selected, the reason is available on all revaluation types. |
| Revaluation Accounting Method | Optional. The accounting method (e.g., Adjust Accumulated Depreciation) to default onto the proposal. Applies to Write Up and Write Down only. Requires Allow Override of Revaluation Accounting. |
| Balance Sheet Account | Optional. The balance sheet GL account to default onto the proposal. Applies to Write Up and Write Down only. Requires Allow Override of Revaluation GL Accounts. |
| Impairment Expense Account | Optional. The impairment expense GL account to default onto the proposal. Applies to Write Up and Write Down only. Requires Allow Override of Revaluation GL Accounts. |
| Gross Write Down | Optional. When checked, turns on the Gross Write Down option on Write Down proposals. Applies to Write Down only. |
| True Up Clearing Account | Optional. The clearing account to default onto True Up proposals. If it’s blank, the proposal uses the asset’s clearing account, or the asset type’s clearing account if the asset has none. Applies to True Up only. Requires Allow Override of Clearing Account. |
Click Save.
3. Select the Revaluation Reason on a revaluation.
On the Revaluation page or a revaluation proposal, select a reason in the Revaluation Reason field. The list only shows active reasons that apply to the revaluation type selected.
When you select a reason, the defaults that apply to that type and are allowed by your settings are applied to the proposal. They replace any values already on the proposal. If the reason’s accounting method doesn’t fit the asset’s current balances, an alert is shown and the previous reason is restored. See example below:
If the Revaluation Accounting or GL account fields are grayed out and uneditable, it is because you do not have the override boxes checked in global settings. See Step 1.
4. Process the revaluation as normal.
Approve and process the proposal using the standard workflow. When the proposal is saved, the system checks again that the reason applies to the revaluation type. The reason is stored on the completed revaluation and used by reporting.
Settings and Revaluation Reason Interaction
| Setting | When enabled | When disabled |
|---|---|---|
| Allow Override of Revaluation GL Accounts | The reason’s Balance Sheet Account and Impairment Expense Account are defaulted onto Write Up and Write Down proposals. | The reason’s GL account fields are ignored. |
| Allow Override of Revaluation Accounting | The reason’s Revaluation Accounting Method is defaulted onto Write Up and Write Down proposals. | The reason’s accounting method is ignored. The proposal uses the Revaluation Accounting set on the NetAsset Setup page. |
| Allow Override of Clearing Account | The reason’s True Up Clearing Account is defaulted onto True Up proposals. | The reason’s clearing account is ignored. |
Example: both revaluation settings enabled. A reason named “Annual Fair Value Adjustment” has the Revaluation Accounting Method set to Adjust Accumulated Depreciation and a specific Balance Sheet Account. Selecting it on a Write Up proposal fills in both values automatically.
Example: only Allow Override of Revaluation GL Accounts enabled. Selecting the same reason applies the Balance Sheet Account and Impairment Expense Account. Its accounting method is ignored, and the proposal keeps the Revaluation Accounting from the NetAsset Setup page.
Example: both revaluation settings disabled. On Write Ups and Write Downs, the reason is used for classification and reporting only. The Gross Write Down default on a Write Down reason still applies, because it has no setting.
CSV Import
Revaluation Reasons are supported in CSV imports of Revaluation Proposal records. Include the Reason field in the import mapping and supply the internal ID or name of the reason. During import, the system:
- checks that the reason applies to the proposal’s revaluation type, and rejects the record if it doesn’t
- fills in reason defaults only where the imported proposal leaves the field blank, subject to the active settings
Reporting
Most NetAsset reports show revaluation activity in the standard revaluation columns, whether or not a reason is assigned. The Asset Register and Asset Roll Forward reports also offer a column for each Revaluation Reason.
- As soon as a reason is created, it’s available as an optional column in the Asset Register and Asset Roll Forward report configurations.
- Each reason column shows the net Write Up, Write Down, and True Up activity for revaluations tagged with that reason in the reporting period. Other revaluation types, such as Build Up, show 0 in reason columns even when a reason is selected. That activity still appears in the standard revaluation columns.
- Inactive reasons remain available as columns, shown with “(Inactive)” after the name, so you can still report on past activity.
- To add a reason column, open the report record in Edit mode. Go to the Advanced Configuration subtab. Scroll to the bottom of the column list and click into the Field Selection for a new row. Type "Revaluation Reasons" to jump to that section of the list and add the reason from the available column options. Click Add for the new column and then Save the report.
Considerations
- A reason with no types in Applies To Revaluation Types is available on all revaluation types. A reason with types selected can’t be used on proposals of any other type, in the UI or by import.
- When "Increase to Gross; Decrease to Accumulated Impairment" or "Increase to Gross; Decrease to Accumulated Depreciation" is used as the Revaluation Accounting Method (either as the global setting or an override on the reason), the Balance Sheet override on the Revaluation Reason is used for both the increase and decrease behavior. Best practice is the leave the Balance Sheet field blank and verify the accounts are correctly mapped on the Asset Type. If overrides are needed, create two separate Revaluation Reasons specific to Write Up and Write Down so the Balance Sheet account can be different for increases vs decreases.
- When Gross Write Down is on, the reason’s Balance Sheet Account is not applied, because a gross write down must post to the fixed asset account. The reason’s Impairment Expense Account is still applied.
- In a multi-book environment, the reason and its defaults apply to every accounting book processed in a single revaluation proposal.
- The reason is stored on the completed revaluation and used by the register query to attribute activity to reason columns. Changing or inactivating a reason after revaluations have been processed does not change historical records.
- Users whose role can’t access the Revaluation Reason record can still select a reason on a revaluation.
