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Description of problem:
When revaluing a fixed asset, according to AASB116, accumulated depreciation needs to be eliminated against the gross carrying value of the asset at the time of revaluation.  What this means is that if i revalue an asset that was originally acquired for 5,000.00 and I have depreciation of 450.00 and I have a revaluation of $6,000.00 then the new "cost" of the asset needs to be $6,000.00 and this is the amount that is to be depreciated.


Error message:
There is no error it is just that the revaluation does not "reset" the asset value


Repro steps:
1. Create a fixed asset and run depreciation for three period
2. Process a revaluation journal for the asset and increase the value for the asset
3. Check the balance of the asset
 - the balance of the asset is the original acquisition price, less any accumulated depreciation plus the revaluation amount.


Dynamics 365 currently does not support this and all the recordings need to be done manually by posting the revaluation transaction to update the net book value.

STATUS DETAILS
Under Review
Ideas Administrator

Hi Marian,

Thanks for the recommendation, and for providing good detail in the suggestion. We'll look at allowing for this revluation functionality in a future product release.

Regards,

Jared Hall
Microsoft

Comments

M

Hi Marian,Would this not be handled by making sure that the FA Posting Type used for the revaluation is included as "Part of Depreciable Basis" in the "FA Posting Type Setup".

Category: Financial Management