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

revaluation area - Overview

• Component: FI-AA

• Component Name: Asset Accounting

• Description: A depreciation area in which you record asset revaluations. Typically, revaluations are recorded in a separate revaluation area, to keep them apart from acquisition and production costs APC. &EXAMPLE& On 15 January you purchase an asset for UNI 12,000. At the end of February you revaluate it as being worth UNI 13,200, which represents an increase of UNI 1,200 over the APC. The system records the UNI 1,200 in its own revaluation area to keep it apart from the APC.

revaluation area - Details

• 
  Key Concepts: 
  Revaluation area is a feature of SAP Asset Accounting (FI-AA) that allows users to revalue assets in different currencies. This feature allows users to revalue assets in different currencies, such as foreign currency, local currency, or a combination of both. The revaluation area also allows users to specify the exchange rate used for the revaluation. 
  
  How to use it: 
  To use the revaluation area, users must first create a revaluation area in the asset master record. This can be done by selecting the “Revaluation Area” tab in the asset master record and entering the desired currency and exchange rate. Once the revaluation area is created, users can then enter transactions in the revaluation area to revalue assets. 
  
  Tips & Tricks: 
  When creating a revaluation area, it is important to ensure that the exchange rate used is up-to-date and accurate. Additionally, it is important to note that only transactions entered in the revaluation area will be used for revaluation purposes. 
  
  Related Information: 
  For more information on how to use the revaluation area in SAP Asset Accounting (FI-AA), please refer to SAP Help documentation or contact your local SAP support team.