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

SAP Term: revaluation amount

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A sum of money, in inflation accounting, that accounts for a change in the price of an asset. &EXAMPLE& Assume you have an asset worth UNI 12,000, that you revaluate to take into account the effects of inflation. The inflation rate is 10%, which means a price increase of UNI 1,200, so that the current cost of the asset is now UNI 12,000 + UNI 1,200 = UNI 13,200. The revaluation amount is UNI 1,200.

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• Key Concepts: 
  Revaluation amount is a term used in SAP FI-AA Asset Accounting. It is the difference between the current market value of an asset and its book value. This difference is calculated when an asset is revalued, which is done periodically to ensure that the asset's book value reflects its current market value. 
  
  How to use it: 
  In SAP FI-AA Asset Accounting, the revaluation amount is calculated by comparing the current market value of an asset to its book value. This comparison is done periodically, and the difference between the two values is recorded as the revaluation amount. This amount can then be used to adjust the asset's book value to reflect its current market value. 
  
  Tips & Tricks: 
  When calculating the revaluation amount, it is important to ensure that all relevant factors are taken into account. This includes factors such as inflation, currency exchange rates, and any other factors that may affect the asset's current market value. 
  
  Related Information: 
  The revaluation amount can also be used to adjust depreciation rates for an asset. This can be done by adjusting the depreciation rate based on the revaluation amount, which will ensure that the asset's book value reflects its current market value. Additionally, it can also be used to adjust tax liabilities for an asset, as any changes in the asset's book value will affect its tax liability.