Asset revaluation in Coins Fixed Assets updates an asset's Written Down Value (WDV) to reflect its current market value, rather than its original cost minus depreciation. Unlike an adjustment, which corrects errors and posts the difference to profit and loss (P&L), a revaluation posts the difference to a Revaluation Reserve, an equity account on the balance sheet.
Revaluation vs adjustment
Choosing the correct batch type ensures the difference posts to the right account.
| Adjustment | Revaluation |
Purpose | Fix mistakes or errors. | Update to current market value. |
Where the difference posts | P&L. | Revaluation Reserve, an equity account on the balance sheet. |
Further guidance on making adjustments to Fixed assets can be found in the Fixed Asset: Enter Adjustment Function article
Create a revaluation entry
Go to Fixed Assets > Input > Adjustments and Revaluations > Enter Revaluations.
Click Add and enter the asset number in the Asset field.
Click Next.
Enter the new WDV in the WDV field under the Revalued column.
Click Save.
Select the revaluation entry and click Ok to post.
Batch and post the revaluation
Go to Fixed Assets > Input > Adjustments and Revaluations > Batch Revaluations.
Select the period and click Next.
Go to Adjustments and Revaluations > Post Revaluations.
Select the batch and click Post.
📌Note: When posted, the system creates the following General Ledger (GL) entries:
a debit to the Capital Account (increasing the asset value) and
a credit to the Revaluation Reserve Account (This is an equity account and not included in the Profit and Loss account)
The WDV on the asset record updates to the new value.
Verify the updated asset value
Go to Fixed Assets > Asset Workbench and open the relevant asset record.
Select the Depreciation tab and check the Initial WDV and Current WDV values.
This can also be verified using the posting report
