What is revaluation in SAP FI-AA - Asset Accounting?

SAP Term: revaluation

• Component: FI-AA

• Component Name: Asset Accounting

• Description: An adjustment to asset values to compensate for a reduction in the value of a currency because of inflation or when adopting market value principles for the valuation of fixed assets. Revaluation enables you to valuate assets at their replacement value which differs from the acquisition and production costs.

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• Key Concepts: 
  Revaluation is a process in SAP FI-AA Asset Accounting that allows for the adjustment of an asset’s book value to reflect its current market value. This process is used to ensure that the asset’s book value is up-to-date and accurate. 
  
  How to use it: 
  In order to use revaluation, the user must first enter the current market value of the asset into the system. This can be done by entering a revaluation rate or by entering a new book value. Once this is done, the system will automatically adjust the asset’s book value to reflect its current market value. 
  
  Tips & Tricks: 
  It is important to note that revaluation should only be used when necessary, as it can have an impact on the financial statements of the company. Additionally, it is important to ensure that all relevant information is entered into the system accurately in order for the revaluation process to be successful. 
  
  Related Information: 
  For more information on revaluation in SAP FI-AA Asset Accounting, please refer to SAP Help documentation or contact your local SAP support team.