NetAsset - Revaluation Proposal
Use Case
NetAsset has the ability to create revaluation proposals and process these revaluations for a given period. If a large number of revaluation proposals need to be processed at once, we recommend these revaluation proposals are uploaded in mass via CSV. However, if only a few revaluation proposals need to be created, follow the steps below to do this directly in NetAsset without the use of a CSV upload.
Please note that users also have the option to revalue an asset without first creating a pending revaluation proposal. However, revaluation proposals are a great way to improve segregation of duties, as one user can propose the revaluation first, and then another user can then process the revaluation. As outlined in this article, individual revaluations can be processed without first creating a pending revaluation proposal by directly clicking the "Revalue" button on an asset record.
Prerequisites
Asset revaluation proposals must be entered and processed in NetAsset within the month and prior to month-end depreciation. Additionally, in order to create a new revaluation proposal in NetAsset, the user must have been granted access to the "NetAsset Revaluation Proposal" permission.
Step by Step Process
Creating a new Revaluation Proposal
To create a new revaluation proposal, navigate to NetAsset > View Asset Registers > Revaluation Register. The NetAsset Revaluation Proposal List will show you a list of any previously created revaluation proposals. To create a new proposal, click the "New NetAsset Revaluation Proposal" button.
On the new NetAsset Revaluation Proposal record, begin by filling out the fields in the Primary Information section.
| Field | Example | Description |
| Asset | FA3017 | From the dropdown list, select the asset to be revaluated. |
| Status | Pending Approval | From the dropdown list, select the status of this proposal. By default, the status will be set to "Approved." |
| Revaluation Type | Prospective (No GL Impact) | From the dropdown list, select the desired revaluation type. |
| Override Clearing Account | Left blank | The override to the offset account used book the build-up to gross assets. (Optional) |
| Notes | Revaluation due to change in useful life. | Input any relevant note to document the rationale for the revaluation. (Optional) |
Other fields in the Primary Information section, such as "Effective Date," "Effective Accounting Period," and "Revaluation Amount" will be determined automatically based on your asset schedule and the revaluation information.
The Before Revaluation section gives you a summary of your asset's information prior to the revaluation. This section does not require any input by the user, rather it pulls the current information from your asset record. Having the information visible is very helpful as you compare your current asset information to the asset information After Revaluation.
In the After Revaluation section, users should enter the the desired changes to be made. Each revaluation type (such as Prospective, Write Down, True-up, etc.) will each require different fields to be populated. For a Prospective Revaluation, as visible in the example above, users have the option to update the fields below. If a different revaluation type is selected in the Primary Information section, other fields will become available for update in the After Revaluation section.
| Field | Example | Description |
| Revalued Depreciation Method | Straight Line | Indicates the updated depreciation method following the revaluation. |
| Revalued Residual Value Estimate | 0.00 | Input the updated residual value estimate to be used in the revalued asset depreciation for end of life value. |
| Revalued Useful Life | 60 | Indicates the updated useful life at the in-service date to be applied to the revalued asset. This value updates automatically when the "Revalued Remaining Useful Life" field is updated. |
| Revalued Remaining Useful Life | 59 | Indicates the updated remaining useful life at the revaluation date to be applied to the revalued asset. This value updates automatically when the "Revalued Useful Life" field is updated. |
Once all desired updates have been made, proceed by saving your changes using the "Save" button. Once saved, this revaluation proposal will now appear on your asset record under the "Revaluations" subtab.
Approving Revaluation Proposals
NetAsset revaluation proposals do not have an official approval process the same way that journal entries can get approved in NetAsset. Rather, to indicate that a revaluation proposal has been approved, the user must edit the proposal record and manually update the "Status" field to "Approved." If revaluation proposals are already approved before they are entered into NetAsset, users can go ahead and save the proposal with an "Approved" status from the start.
Please note that an approved revaluation proposal does not have an affect on the schedule or G/L. This only occurs once the proposal is processed.
Processing Revaluations
Once the revaluation proposal's status is "Approved," the revaluation can be processed. This can be done for one proposal at a time or can also be processed for multiple revaluations at once.
Processing Multiple Proposals at once
To process your asset revaluation proposals in bulk, navigate to NetAsset > Update or Modify Assets > Mass Revalue Assets. On this page you will see the full list of all your approved revaluation proposals. Select the proposals you want to process and click the "Revalue" button.
Processing Proposals Individually
Once a proposal has been approved, a new "Revalue Asset" button will appear on the proposal record.
Once you click that button, a pup-up will appear asking if you are sure you want to revalue this asset. Click "OK" to proceed or click "Cancel" to cancel the revaluation.
Once you click "OK," you will be navigated to the asset record with the revaluation processing in the background. Refresh the asset using the "Refresh" button until the revaluation is complete.
Taking a look at the "Revaluations" subtab on the asset record, you will now see that the revaluation is showing as complete. You can click into the ID to be navigated to the completed proposal record.