NetAsset - Write-Down (Impairment)
Overview
The Write-Down revaluation type addresses situations where an asset's carrying value must be reduced below its current depreciated value — typically to reflect an impairment or decline in market value. The asset remains in service and continues to depreciate against the revised balances. The write-down must be processed within the month and before month-end depreciation calculations.
Prerequisites
- Month-end depreciation for the effective revaluation period must not yet be posted.
- The user must have access to post to the Fixed Asset, Accumulated Depreciation, Accumulated Impairment, and Impairment Expense accounts configured on the Asset Type or Asset record.
Step-by-Step Process
1. Initiate the Revaluation
- Navigate to the NetAsset record and click Revalue on the record header.
- Select Write Down from the Revaluation Type dropdown.
2. Configure Revaluation Parameters
| Field | Purpose |
|---|---|
| Effective Revaluation Date | Date the write-down takes effect. Will default to most recent period without depreciation yet run. |
| Depreciation Method | Optional. Apply a prospective depreciation method change alongside the write-down. |
| Useful Life / Remaining Useful Life | Optional. Adjust the remaining depreciation timeline. |
| Residual Value Estimate/Residual Value Percentage | Optional. Update the expected recovery amount at the end of useful life. |
| Write-Down Amount | The amount by which the asset's carrying value will be reduced. Cannot exceed the current Net Book Value unless Gross Up GL Impact is selected. |
| Gross GL Impact | Checkbox. When checked, the write-down uses the gross GL treatment described below and defaults the Write-Down Amount to the asset's Net Book Value. |
| Revaluation Note | Free-text documentation of the basis for the adjustment. |
3. Review the Calculated Balances
NetAsset displays the resulting New Gross Asset Value, New Accumulated Depreciation, New Net Book Value, and — when Gross Up GL Impact is checked — the Gross Up Impact amount. These read-only fields update in real time so the preparer can confirm the post-revaluation balances before submitting.
4. Submit the Write-Down
Click Revalue Asset to submit. NetAsset creates a NetAsset Revaluation Proposal record that persists the before/after balances and, once approved, posts the corresponding journal entry.
Gross GL Impact Option
The standard Write-Down logic adjusts one account — either the Fixed Asset Account (gross), the Accumulated Depreciation Account, or the Accumulated Impairment Account — based on the global Revaluation Accounting preference. The resulting entry reduces the asset's carrying value by the Write-Down Amount only.
The Gross GL Impact option produces a three-line entry that mirrors how a disposal is recorded, while leaving the asset in service:
- The gross asset value is credited out of the Fixed Asset Account.
- The accumulated depreciation is debited back out of the Accumulated Depreciation Account proportional to the write-down.
- The net exposure is debited to the Impairment Expense Account.
This treatment is appropriate when an asset has been economically impaired but must remain on the books for reporting or operational purposes, and when the reporting framework requires the gross carrying value and accumulated depreciation to be cleared rather than netted against an impairment reserve.
Behavior when the checkbox is selected:
- The Write-Down Amount defaults to the asset's current Net Book Value (less Residual Value, if specified). The preparer may override this value.
- The default Balance Sheet Account changes from the Accumulated Depreciation or Accumulated Impairment account to the Fixed Asset Account.
- Accumulated depreciation is reduced proportionally — if the Write-Down Amount equals the full Net Book Value, accumulated depreciation is reversed in full; if partial, it is reversed by the same proportion.
- The Gross Up Impact field displays the calculated net impact to the Impairment Expense Account.
Residual Value handling
When a Residual Value is specified on the revaluation, the Gross Up calculation is based on the asset's gross value less residual value. Accumulated depreciation is reversed proportionally to the percentage of that value being written down.
Journal Entry Impact
Standard Write-Down (Gross Up GL Impact unchecked) — single debit and credit:
| Account | Debit | Credit |
|---|---|---|
| Impairment Expense Account | Write-Down Amount | |
| Fixed Asset, Accumulated Depreciation, or Accumulated Impairment Account (per global setting) | Write-Down Amount |
Gross Up Write-Down (Gross Up GL Impact checked) — three-line entry:
| Account | Debit | Credit |
|---|---|---|
| Accumulated Depreciation Account | Proportional Accumulated Depreciation | |
| Impairment Expense Account | Remaining Net Book Value | |
| Fixed Asset Account | Gross Asset Value being written down |
The journal entry memo on gross entries is tagged as "{Asset Name} - Write Down Gross Impact Entry" to distinguish it from standard write-downs in reporting.
Considerations
- The Gross GL Impact option is available only on Write-Down revaluations — it does not appear on Write-Up, True-Up, or Prospective revaluations.
- Selecting Gross GL Impact does not dispose the asset. The asset remains active, retains its schedule, and continues to post any remaining depreciation after the write-down.
- The global Revaluation Accounting preference is ignored when Gross Up GL Impact is selected — the GL treatment is fixed to the gross-up logic above.
- A NetAsset Revaluation historical record is saved on the asset in all cases, capturing the before and after balances for audit purposes.
Limitations & Callouts
Availability
The Gross Up Impact field was introduced in NetAsset 2026.1.2.0. Users on earlier bundle versions will not see the checkbox and should upgrade to access this treatment.
Write-Down Amount override
When Gross GL Impact is checked, the Write-Down Amount defaults to the asset's full Net Book Value. If the preparer clears or reduces this amount, accumulated depreciation is reversed proportionally rather than in full. Verify the calculated Gross Impact figure before submitting.