Revaluation

As the condition of your assets changes over time, the recorded value may no longer reflect an asset's actual value. You can use revaluations to accurately reassess an asset's true value. The revalued amount will be applied on the next depreciation run.

Assets can be revalued in three ways:

  • You can revalue single assets from the Asset Valuation InfoViewer. A single revaluation uses a revalued amount that you specify.
  • You can revalue assets in bulk from the asset valuation group lookup. A bulk revaluation uses a formula to calculate asset values.
  • Assets can be revalued when you import valuation data from an external source via Rest Services or Web Services. The import uses the same formula that is used for asset valuation groups.

There are two methods for revaluing assets:

  • Net valuate: With this method, you assign to each asset a revalued amount that you have calculated yourself. The new value applies as of the revaluation date. The accumulated depreciation as of this date is set to zero.
  • Gross replacement: With this method, you specify a replacement cost for an asset, which retroactively replaces the asset’s original acquisition value. Depreciation is recalculated from the acquisition date through the revaluation date to determine the new value for the asset.

    For example, a piece of equipment was acquired on June 16, 2022, at an initial cost of $20,000. This asset uses the straight line depreciation method, with an expected life of 20 years and a residual value of $5,000.

    As of June 16, 2026, the asset’s accumulated depreciation is $3,000, so its current value is $17,000. (20% of the asset’s expected life has elapsed, so it has lost 20% of the $15,000 in value that it is expected to lose over its entire life.)

    If you specify a replacement cost of $25,000, the accumulated depreciation is recalculated as if $25,000 was the initial cost on June 16, 2022. The asset is now expected to lose $20,000 in value over its expected life, so its accumulated depreciation as of June 16, 2017 is $4,000, and its value as of that date is $21,000.