NetAsset - True Up Revaluation

Overview

When an asset is discovered to have been capitalized with incorrect information mid-life, resulting in inaccurate depreciation, a true-up revaluation corrects the accounting impacts without reversing historical activity. The true-up adjusts current period beginning balances to reflect what they should have been had the correct information been entered from inception. Historical depreciation information is retained in historical depreciation lines, and the system creates a true-up line linked to the revaluation entry. The system records any differences against depreciation expense. Future period schedule lines are regenerated based on the corrected asset information to ensure subsequent depreciation entries are calculated and booked correctly.

For organizations using Multi-Book accounting, a workaround process is available to target a specific depreciation schedule when performing a True Up revaluation. This process is supported both through the revaluation proposal record user interface and through CSV import directly to the NetAsset Revaluation Proposal record.

Prerequisites

Before performing a True Up revaluation, confirm the following conditions are met:

The accounting period must be open.
The revaluation must be entered prior to the month-end depreciation run.
The asset may not be in a status of "On Hold."

Step-by-Step Process

Navigate to the NetAsset record requiring revaluation and click the Revalue button.
In the Revaluation Type field, select True-Up.

Update the following fields as necessary for the asset revaluation:

Field	Description	Example
Effective Revaluation Date	The start date of the period when the revaluation should take effect. The true-up defaults to the first period without a journal entry recorded.	06/01/2023
Depreciation Method	The depreciation method that should have been applied to the asset since the in-service date.	Straight Line
Capitalized Asset Value	The corrected capitalized asset value as of the in-service date.	1,843,500
Accumulated Depreciation at In-Service	The corrected accumulated depreciation as of the in-service date. This field typically applies to mid-life asset capitalizations.	20,000
In-Service Date	The correct in-service date for the asset.	01/01/2023
Useful Life at In-Service	The corrected useful life at the in-service date. This field auto-adjusts when the Remaining Useful Life field changes.	48
Remaining Useful Life	The corrected useful life at the effective revaluation date. This field auto-adjusts when the Useful Life at In-Service field changes.	43
Residual Value Estimate	The residual value estimate. Must be less than the current net book value and greater than or equal to zero.	10,000
True Up Clearing Account	The GL clearing account used to route any changes to the asset's gross value through as part of the True Up journal entry; defaults to the fixed asset proposal clearing account associated with the asset type.	1690 Fixed Asset Proposals (Clearing)
Re-Establish Go-Live Clearing Account	Select this checkbox if the asset was migrated into NetAsset at go-live and the corrections made in this True Up should also update the original go-live clearing account entry that established the asset's opening balances.	🗸
New Gross Asset Value	When Manually Adjust Balances is selected, the new gross asset value to adjust the book value.	1,840,000
New Accumulated Depreciation	When Manually Adjust Balances is selected, the new accumulated depreciation to adjust the book value.	258,000
Manually Adjust Balances	Select this checkbox when the system-calculated balances do not match your audited figures and you need to directly enter the correct New Gross Asset Value and New Accumulated Depreciation amounts rather than having the system derive them from the corrected asset inputs.	🗸
Revaluation Note	A brief description of the basis and adjustments made for future reference and support.	Correction of original useful life

Verify all revaluation inputs and confirm the new financial information fields are correct for the current period, then click Revalue Asset.
Return to the asset record and refresh the page until the Processing Status no longer displays "Processing Revaluation..."
The system splits the Effective Revaluation Date Period into two entries: one to record the GL impact of the revaluation and one to record the normally scheduled depreciation.

Click the hyperlink to the NetAsset Revaluation Entry to view how the system reverses the old asset G/L impacts and establishes the new G/L impacts.
For more information on how the amounts in the Revaluation Entry, please review the Explanation of the True Up Amounts article

On the asset record, the system also creates a NetAsset Revaluation record, available on the Revaluations subtab, to preserve historical values before and after the revaluation.
Click the Edit link for the NetAsset Revaluation record in the sublist to view the asset information before and after the revaluation.

Once the revaluation entry has run, complete the following final steps:

Reconcile the True Up Clearing Account. If a balance remains in the clearing account after the revaluation posts, coordinate with your accounting team to clear it.
Review the depreciation schedule. On the asset's Depreciation Schedule subtab, verify that future period amounts reflect the corrected asset information.
Run month-end depreciation as normal.

Multi-Book True Up

When the Multi-Book feature is enabled and an asset has alternate depreciation schedules, the True Up revaluation must target a specific accounting book's schedule. This applies the True Up to the correct book by populating the Depreciation Schedule field, which identifies the alternate schedule to be corrected.

Using the Revaluation Proposal Record User Interface

When initiating a True Up revaluation from the asset record on a multi-book asset, the Depreciation Schedule field appears automatically in the Revaluation Information section of the form. Input the internal ID for the appropriate accounting book schedule from this field before completing the remaining revaluation inputs and submitting the form.

Using CSV Import

To perform a Multi-Book True Up via CSV import, create the NetAsset Revaluation Proposal records directly using NetSuite's CSV Import tool. In addition to all standard True Up fields, the Depreciation Schedule field must be populated on the Script Fields subtab of the NetAsset Revaluation Proposal record. This field identifies which alternate depreciation schedule the True Up should target for the corresponding accounting book.

Prepare the CSV file with all required True Up revaluation fields, including the internal ID of the target alternate depreciation schedule in the Depreciation Schedule column.
Navigate to Setup > Import/Export > Import CSV Records.
Select NetAsset Revaluation Proposal as the record type.
Map the Depreciation Schedule column to the Depreciation Schedule field located under the Script Fields subtab mapping.
Complete and submit the import. Once the records are created in a Pending Approval status, approve each revaluation proposal to trigger processing.

Callouts

When to Use True Up vs. Other Revaluation Types

Use the True Up revaluation when the original information entered at capitalization was incorrect, such as the wrong cost basis, useful life, in-service date, or accumulated depreciation at in-service. If the asset was set up correctly but something has changed going forward, use Prospective (No GL Impact) to adjust future depreciation without a GL entry, or Write Up/Write Down to recognize a specific impairment or fair value change. Use Place Depreciation On Hold to temporarily pause depreciation, and Place Back In Service to resume it.

The True Up revaluation type is not available for assets that use usage-based depreciation or extended life formulas, regardless of the multi-book configuration. When performing the True Up via the Revaluation UI, the Depreciation Schedule field appears only when the asset has accounting books assigned and the Multi-Book feature is enabled in NetAsset Global Settings.

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