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Revaluations and impairment

Revaluations and impairment

Overview

The Revaluations screen consolidates the history of every value adjustment recorded against the company's fixed Assets: both upward revaluations (increasing the book value) and impairments (reducing it). Accountants and administrators use it to review and audit each adjustment without having to walk asset by asset. The records are read-only on this screen; new revaluations are entered from each asset's detail.

How to get there

Navigation menu: Accounting > Revaluations

Direct URL: /Accounting/revaluations

Key concepts

Term Definition
Revaluation An adjustment that increases an asset's book value above its net carrying cost. It produces a revaluation surplus in the general ledger.
Impairment An adjustment that reduces an asset's book value when its recoverable amount falls below the carrying value. It produces an impairment loss in the general ledger.
NBV Before The asset's net carrying value immediately before the adjustment is applied (acquisition cost less accumulated depreciation plus earlier adjustments).
NBV After The resulting net carrying value once the adjustment amount is applied.
Journal batch The pending journal entry the system generates automatically when each revaluation or impairment is recorded.
Salvage value The minimum value that can remain on the books when an impairment is applied; the system does not allow the value to be reduced below this floor.

How to use it

Review the revaluation and impairment history

  1. In the side menu, click Accounting and then Revaluations.
  2. The table loads every recorded adjustment automatically, sorted by Revaluation Date, newest first.
  3. Use the column filters to narrow the results (by asset, type, date, amount and so on).
  4. When filters are active, the Clear filters button appears in the header; click it to restore the full view.
  5. To refresh the data at any time, click Refresh (the reload icon) in the top right corner.

Record a revaluation or impairment on an asset

Value adjustments are not created from this screen, but from the relevant asset's detail. Follow these steps:

  1. Go to Assets and open the asset you want to adjust (it must be Active).
  2. In the detail's action bar, click Revalue.
  3. The Revalue Asset dialog opens with these fields:
    • Revaluation date (required): choose the adjustment's effective date.
    • Type (required): choose between Revaluation (an upward revaluation) or Impairment.
    • Amount (required): enter the adjustment's value (it must be greater than zero).
    • Notes (optional): add a description or justification for the adjustment.
  4. Click Revalue to confirm. The system records the adjustment, updates the asset's book value and generates a journal batch in pending status.
  5. Click Cancel to close the dialog without saving.
  6. Once saved, the notification "Asset revalued successfully." appears.

Note: the Revalue button is only visible when the asset is Active. Draft, disposed or fully depreciated Assets cannot be revalued.

Fields

Table columns (Revaluations screen)

Field Type Description
Asset Text The code of the asset the adjustment belongs to.
Revaluation Date Date The effective date the adjustment was recorded (format: Month dd, yyyy).
Type Tag Whether it is an upward revaluation (Revaluation) or an impairment (Impairment).
Amount Decimal (2 decimals) The absolute value of the adjustment applied, right-aligned.
NBV Before Decimal (2 decimals) The asset's net carrying value before the adjustment.
NBV After Decimal (2 decimals) The asset's net carrying value after the adjustment is applied.

Fields of the "Revalue Asset" dialog

Field Type Required Description Validation
Revaluation date Date Yes The value adjustment's effective date. Cannot be empty.
Type Drop-down Yes Upward revaluation or impairment. A value must be selected.
Amount Numeric (N2) Yes The adjustment's positive amount. Must be greater than 0.01. For an impairment, the resulting book value cannot fall below the asset's salvage value.
Notes Text field (multiline) No Justification or description of the adjustment. Maximum 1,000 characters.

Permissions

Available to users with access to the Accounting module, as configured by your administrator. No extra permission is needed to view the list. To record a revaluation or impairment, the user must also have edit access to the relevant asset's detail.

Notes

  • Each revaluation or impairment automatically generates a journal batch in Pending status in the Accounting module. That batch has to be reviewed and approved separately on the Journal batches screen.

  • For the system to generate the journal entry, the asset model must have the matching GL account codes configured:

    • Upward revaluation: needs the Asset Account Code and the Revaluation Surplus Account Code.
    • Impairment: needs the Accum. Depreciation Account Code and the Impairment Loss Account Code.

    If any of these codes is missing, the system shows an error and does not record the adjustment. The Asset Account Code is edited under Master > Asset models; the revaluation surplus and impairment loss accounts are configured by P4 Software on the model, so if you see that error, ask support to set them up.

  • The table supports searching each record's Notes field; use the column filter to find adjustments by their reason.

  • When the active company changes (the company selector), the table refreshes automatically.

Troubleshooting

Symptom Likely cause Resolution
The Revalue button does not appear on the Asset detail. The asset is not Active (it may be draft, disposed or fully depreciated). Check, and if appropriate change, the asset's status to Active before trying to revalue.
Save error: "Revaluation amount must be positive". The amount entered is zero or negative. Enter a value greater than zero in Amount.
Save error: "Impairment cannot reduce carrying below salvage value". The impairment would take the book value below the asset's salvage value. Reduce the impairment amount, or review the salvage value configured on the asset.
Missing GL account error on the model. The asset model does not have every account code required for that adjustment type. Complete the Asset Account Code under Master > Asset models. The revaluation surplus and impairment loss accounts are not editable from the application: ask P4 Software support to configure them.
The table is empty. No revaluations or impairments have been recorded in the active company yet. Record the first adjustment from an active asset's detail, or check that the right company is selected.

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