HansaWorld - Integrated ERP and CRM

Introduction to Maintenance in the Assets Module

Maintenance functions allow you to carry out certain updating tasks, usually involving batch processing and encompassing all or many of the records in the affected register. There are six such function available in the Assets module. To use them, select 'Maintenance' from the File menu. The following window appears:

Double-click the chosen option: a specification window will then appear, where you can decide how the function is to operate. Click [Run] to operate the function.

Create Depreciation Simulations

This function will create a record in the Simulation register in the Nominal Ledger representing the depreciation of the selected Assets over the selected period. Using these Simulations, you can test different outcomes on the Balance Sheet and the Profit & Loss report before you confirm the depreciation of each Asset for the month or year.

Once you have checked and finalised a Simulation created by this function, you can convert it into a Transaction using the 'Transactions' function on the Operations menu of the 'Simulations: Browse' window.

The value of the depreciation of an Asset is calculated using one of the two Depreciation Models specified on the 'Models' card of the Asset record and, depending on which Model you use, the Purchase Value on the 'Purchase' card or the Purchase Value 2 on the 'Models' card. As an option you can use an Asset's Fiscal Value instead of its Purchase Value. The Initial Depreciation, if any, will be included in the calculation, as will the Residual Value, if any and if the previous depreciation of the Asset is such that the Residual Value has been reached. Full details of this process, together with an example, can be found on the page describing the 'Models' card of the Asset record.

Note that, because the function creates records in the Simulation register, not in the Transaction register, there is no control to prevent you running it repeatedly for the same Asset for the same period. You can easily delete superfluous records from the Simulation register. However, take care to ensure that you only convert one Simulation for a particular Asset and period into a Transaction.

You can produce a Simulation Preview - Depreciations report before using this function to preview the Simulation that will be created.

If the function does not calculate depreciation for an Asset, the probable causes are:

In the Asset record, the Purchase Value or Fiscal Value (as appropriate), Asset Category, Depreciation Model and/or Start Date are blank, or the Quantity is zero.
The Asset belongs to an Asset Category that does not have an Asset Class, or the Asset Class does not have a Depreciation or a Cost Account.
There is no valid record in the Number Series - Simulations setting (in the Nominal Ledger). This problem will usually occur at the beginning of a new year.

Period

Paste Special Reporting Periods setting, System module

Specify the time period for which depreciation will be calculated. Unless you are using a Straight Line Depreciation Model and the Values per Day option, the period should consist of a selected number of whole months: it will be rounded up if this is not the case.

Category

Paste Special Asset Categories setting, Assets module

Range Reporting Alpha

Limit the selection to Assets belonging to a single Asset Category.

Inventory No.

Paste Special Asset, Assets module

Range Reporting Alpha

Enter one or more Assets for which depreciation is to be calculated.

Asset N/L Class

Paste Special Asset N/L Classes setting, Assets module

Limit the selection to Assets belonging to a single Asset Class.

Assets do not have an Asset Class field: each Asset belongs to an Asset Category, and each Category in turn belongs to an Asset Class.

Department

Paste Special Departments setting, Assets module

Limit the selection to Assets belonging to a particular Department. This information will be taken from the latest Asset Status record of Type "Movement" (even if that is later than the depreciation period), or, if there aren't any, from the 'Owner' card of the Asset record.

Trans. Date

Paste Special Choose date

Enter a date to be used as the Transaction Date in the Simulation created by the function. If you do not enter a date, the current date will be used.

Model

Use one of these alternatives to determine which of the two Depreciation Models specified on the 'Models' card of each Asset record is to be used to calculate its depreciation.

Calculation

These options are relevant to Straight Line Depreciation Models only. Declining Balance Models always use the Per Month option.

Values per Month: This option will divide the yearly depreciation percentage by 12 to obtain a monthly percentage. For example, an Asset worth 50,000 being depreciated by 5% p.a. will be depreciated by 208.33 per month (50,000 x 0.05 / 12). This figure will always be the same, irrespective of the number of days in the month.
Values per Day: This option will divide the yearly depreciation percentage by 365 and multiply it by the number of days in the month to obtain a monthly percentage. For example, an Asset worth 50,000 being depreciated by 5% p.a. will be depreciated by 212.33 per 31 day month (50,000 x 0.05 / 365 x 31). This figure will change, depending on the number of days in the month. The number of days is calculated from the report period.

Start from Last Revaluated Value

Use this option to control how depreciation is calculated if an Asset has at least one Revaluation record. Such Revaluation records will take effect from their Starting Dates (if this option is not used) or from the beginning of the life of the Asset.

If there are no Revaluation records for a particular Asset, this check box will have no effect and depreciation will be calculated as normal.

This option may be useful if you are using a Straight Line Depreciation Model, you did not change the Model in the Revaluation record and you want to ensure the life of an Asset remains the same. By treating the value in the latest Revaluation as the original Purchase Value of an Asset, it effectively recalculates the depreciation from previous years retrospectively. Depending on advice from your auditor, you may need to record the change in depreciation in the Nominal Ledger. This retrospective calculation will take place even when the Starting Date of the Revaluation is later than the report period. So, you might need to make certain that depreciation from past years is calculated and posted to the Nominal Ledger before entering subsequent Revaluations.

Simulation per Asset

In the Simulation created by this function, depreciation of an Asset will be debited to the Cost Account of the Asset Class to which the Asset belongs and credited to the Depreciation Account of the Asset Class.

By default, a single Simulation will be created. If you are not using Objects, this Simulation will contain a single debit posting to each Cost Account (to the value of the accumulated depreciation of all Assets using that Account) and a single credit posting to each Depreciation Account. If you are using Objects, the Simulation will contain single postings for each Object/Account combination.

If you do not want a single Simulation to be created but instead would like one Simulation per Asset, check this box.

Skip Inactive

Check this box if you do not want to calculate depreciation for Assets that have been marked as Inactive.

Skip Disposed

Check this box if you do not want to calculate depreciation for Assets that have been disposed of (i.e. written off or sold using an approved Disposal record).

Use Fiscal Val instead of Purchase Val

Check this box if you want to use the Fiscal Value as the basis for the depreciation calculations, instead of the Purchase Value.

If you use this option, make sure you have specified Fiscal Values for all your Assets. Depreciation will not be calculated for an Asset with no Fiscal Value.

A sample Simulation created by this function is shown below. The depreciation figure is debited to the Cost Account from the Asset Class and credited to the Depreciation Account. The Cost 1 and Depreciation 1 Accounts will be used together with Depreciation Model 1, and the Cost 2 and Depreciation 2 Accounts will be used together with Depreciation Model 2. The Objects in the Asset record will be assigned to both sides of the Transaction. The Obj. and the Cost 1 Obj. or Cost 2 Obj. (depending on the Depreciation Model) from the Asset Class will also be assigned to the debit posting, while the Obj. and the Depr 1 Obj. or Depr 2 Obj. (depending on the Depreciation Model) will also be assigned to the credit posting.

By default, single debit and credit postings are made for each Asset Class, irrespective of the number of Assets. Separate postings are made for each Object combination. If you would like separate postings to be made for each Asset, use the Simulation per Asset option.

Create Depreciation Simulations - Examples

These examples use an Asset with a Purchase Value of 50,000, a depreciation of 5% p.a. and a starting date of 1/1/2004.
Straight Line Model
This Model depreciates an Asset by the same amount each year, using its initial value (i.e. the purchase price) as the basis for the calculation.

Depreciation can only be calculated for periods shorter than one month if you use the Values per Day option. Otherwise, the period must be a number of whole months or years.

Depreciation for 2004

1/1/2004 - 31/12/2004 is entered as the period.

Values per Month: 50,000.00 x 0.05 = 2,500.00
Values per Day: 50,000.00 x 0.05 / 366 x 366 (2004 is leap year) = 2,500.00

Depreciation for 2005

1/1/2005 - 31/12/2005 is entered as the period.

Values per Month: 50,000.00 x 0.05 = 2,500.00
Values per Day: 50,000.00x 0.05 / 365 x 365 = 2,500.00

Depreciation for January 2004

1/1/2004 - 31/1/2004 is entered as the period.

Values per Month: 50,000.00 x 0.05 / 12 = 208.33
Values per Day: 50,000.00 x 0.05 / 366 x 31 = 211.75

Depreciation for December 2004

1/12/2004 - 31/12/2004 is entered as the period.

Values per Month: 50,000.00 x 0.05 / 12 = 208.33
Values per Day: 50,000.00 x 0.05 / 366 x 31 = 211.75

Depreciation for January 2005

1/1/2005 - 31/1/2005 is entered as the period.

Values per Month: 50,000.00 x 0.05 / 12 = 208.33
Values per Day: 50,000.00 x 0.05 / 365 x 31 = 212.33

Declining Balance Model
This Model depreciates an Asset by a reducing amount each year, using its initial value (i.e. the purchase price) less the previous depreciation as the basis for the calculation. This initial value declines on a monthly basis.

The Values per Month/Values per Day options do not apply to the Declining Balance Model. Depreciation cannot be calculated for periods of less than one month: the period must be a number of whole months or years.

Depreciation for 2004: (50,000.00 x 0.05 / 12) + ((50,000.00 - 208.33) x 0.05 / 12) + ... + ((50,000.00 - 2,244.52) x 0.05 / 12) = 2,443.50; 1/1/2004 - 31/12/2004 is entered as the period. The starting value declines each month.
Depreciation for 2005: (47,556.50 x 0.05 / 12) + ((47,556.50 - 198.15) x 0.05 / 12) + ... + ((47,556.50 - 2,134.83) x 0.05 / 12) = 2,324.08; 1/1/2005 - 31/12/2005 is entered as the period.; 47,556.50 is the starting value at the start of January 2005, taking the depreciation for the previous year into account, and declines further each month.
Depreciation for January 2004: 50,000.00 x 0.05 / 12 = 208.33; 1/1/2004 - 31/1/2004 is entered as the period.
Depreciation for December 2004: 47,755.48 x 0.05 / 12 = 198.98; 1/12/2004 - 31/12/2004 is entered as the period.; 47,755.48 is the starting value at the start of December 2004, taking the depreciation for the previous 11 months into account.
Depreciation for January 2005: 47,556.50 x 0.05 / 12 = 198.15; 1/1/2005 - 31/1/2005 is entered as the period.; 47,556.50 is the starting value at the start of January 2005, taking the depreciation for the previous 12 months into account.

Declining Balance 2 Model
This Model depreciates an Asset by a reducing amount each year, using its initial value (i.e. the purchase price) less the previous depreciation as the basis for the calculation. Unlike the Declining Balance Model described above, the basis for the calculation does not decline every month but only every January. The depreciation for each month in a calendar year is therefore the same.

Depreciation for 2004: 50,000.00 x 0.05 = 2,500.00; 1/1/2004 - 31/12/2004 is entered as the period.
Depreciation for 2005: 47,500.00 x 0.05 = 2,375.00; 1/1/2005 - 31/12/2005 is entered as the period.; 47,500.00 is the starting value at the start of January 2005, taking the depreciation for the previous year into account.
Depreciation for January 2004: 50,000.00 x 0.05 / 12 = 208.33; 1/1/2004 - 31/1/2004 is entered as the period.
Depreciation for December 2004: 50,000.00 x 0.05 / 12 = 208.33; 1/12/2004 - 31/12/2004 is entered as the period.; 50,000.00 is the starting value at the start of December 2004. The starting value is not reduced until the beginning of the next calendar year.
Depreciation for January 2005: 47,500.00 x 0.05 / 12 = 197.92; 1/1/2005 - 31/1/2005 is entered as the period.; 47,500.00 is the starting value at the start of January 2005, taking the depreciation for the previous 12 months into account.

Each time you run the 'Create Depreciation Simulations' Maintenance function, it effectively calculates the depreciation again for the previous periods before doing so for the current period.
Start from Last Revaluated Value
In this example, the Asset from the previous examples is used again, and there is one Revaluation record with a Starting Date of 1/7/2005 and a Starting Value of 55,000.

If you do not use the Start from Last Revaluated Value option, each Revaluation record will take effect from its Starting Date. If you are using a Straight Line Depreciation Model and you are calculating depreciation on a Per Day basis, each Revaluation record will take effect from the exact Starting Date. If you are calculating depreciation on a Per Month basis, each Revaluation record will take effect from the first day of the month of the Starting Date. If you are using a Declining Balance Model, depreciation is always calculated on a Per Month basis.

Depreciation for 2004

1/1/2004 - 31/12/2004 is entered as the period.

	Straight Line	50,000.00 x 0.05 = 2,500.00
	Decl. Balance	(decl. mthly from 50,000.00) 2,443.50
	Decl. Balance 2	50,000.00 x 0.05 = 2,500.00

Depreciation for 2005

1/1/2005 - 31/12/2005 is entered as the period.

Straight Line

	1/1/05 - 30/6/05	50,000.00 x 0.05 x 6/12 = 1,250.00
+	1/7/05 - 31/12/05	55,000.00 x 0.05 x 6/12 = 1,375.00
=		2,625.00

Decl. Balance

	1/1/05 - 30/6/05	(decl. mthly from 47,556.50) 1,176.60
+	1/7/05 - 31/12/05	(decl. mthly from 51,379.51) 1,271.19
=		2,447.79

(51,379.91 is 55,000.00 less depreciation to 1/7/05)

Decl. Balance 2

	1/1/05 - 30/6/05	47,500.00 x 0.05 x 6/12 = 1,187.50
+	1/7/05 - 31/12/05	51,312.50 x 0.05 x 6/12 = 1,282.81
=		2,470.31

(51,312.50 is 55,000.00 less depreciation to 1/7/05)

If you use the Start from Last Revaluated Value option, the value in the latest Revaluation record (even if its Starting Date is later than the end of the report period) will be used as the original Purchase Value of the Asset. Any intervening Revaluations will be ignored. The depreciation from previous years will therefore be recalculated retrospectively.

Depreciation for 2004

1/1/2004 - 31/12/2004 is entered as the period.

	Straight Line	55,000.00 x 0.05 = 2,750.00
	Decl. Balance	(decl. mthly from 55,000.00) 2,687.85
	Decl. Balance 2	55,000.00 x 0.05 = 2,750.00

Depreciation for 2005

1/1/2005 - 31/12/2005 is entered as the period.

	Straight Line	55,000.00 x 0.05 = 2,750.00
	Decl. Balance	(decl. mthly from 52,312.15) 2,556.49
	Decl. Balance 2	52,250.00 x 0.05 = 2,612.50

Create Depreciation Transactions

This function is similar to 'Create Depreciation Simulations', the only differences being that it will create a record in the Transaction register, bypassing the Simulation register, and that it will create separate records for each Asset being depreciated in the Asset Transaction register. Please refer to the page describing the 'Create Depreciation Simulations' function for full details.

Take care when using this function: there is no control to prevent its being run repeatedly for the same Asset for the same period.

Create Put in use Transactions

In some countries, it is necessary to create a Nominal Ledger Transaction when an Asset is put into use. You can do this for Assets in batches using this function, and for single Assets using the 'Create Put in use Transaction' function on the Operations menu of the Asset screen. This function finds all Assets within the selected range that do not have a Start Date 1 and creates a single Transaction including them all.

Selecting the 'Create Put in use Transactions' function brings up the 'Specify Put in use Transactions' window:

Category: Paste Special Asset Categories setting, Assets module; If the function is to consider Assets belonging to a particular Category, specify that Category here.
Inventory No.: Paste Special Asset, Assets module; Range Reporting Numeric; If the function is to consider a specific Asset (or range of Assets), enter its Inventory Number here.; When you run the function from the Operations menu of the Asset screen, the Inventory Number of the Asset being viewed will be placed here automatically.
Department: Paste Special Departments setting, Assets module; If you want to apply the function to Assets belonging to a particular Department (specified on the 'Owner' card of the Asset screen), specify that Department here.
Transaction Date: Paste Special Choose date; Enter a date to be used as the Transaction Date in the Transaction created by the function. If you do not enter a date, the current date will be used.
Trans. Comment: Any comment that you enter here will be copied to the Text field in the Transaction created by the function. It will therefore be shown in the 'Transactions: Browse' window.
Capital Inv. A/C: Paste Special Account register, Nominal Ledger/System module; Specify here the Account to be credited with the Purchase Value of each Asset in the Transaction created by this function. If you leave this field blank, the Capital Investment Account in the Account Usage Assets setting will be used.

Click [Run] to run the function. It may take a few moments, depending on the number of Assets to be included in the Transaction. When it has finished, you will be returned to the 'Maintenance' list window.

A sample Transaction created by this function is shown below. The Purchase Value of the Asset is debited to the Asset Account specified in the Asset Class and credited to the Capital Investment Account specified in the 'Specify Create Put in use Transactions' window or in the Account Usage Assets setting. The Objects on the debit side come from the Asset and the Asset Class (Obj. and Asset 1 Obj fields).

A single credit posting is made, irrespective of the number of Assets to be included. Separate debit postings are made for each Object combination.

The Transaction Date will be copied to both Start Date fields on the 'Models' card of each Asset. Once an Asset has a Start Date 1, this will stop further Put In Use Transactions being created for that Asset, and depreciation calculations can begin.

If a particular Asset is not included in the Transaction, or no Transaction is created, the probable causes are:

The Asset already has a Start Date 1 or does not have a Purchase Value. Note: if there is no Purchase Value, no Transaction will be created, but the Transaction Date will be written to the Start Date 1 field. Remove this date when returning to the Asset to enter a Purchase Value.
The Asset does not belong to an Asset Category, the Category does not belong to an Asset Class or the Asset Class has no Asset 1 Account.
You did not specify a Capital Investment Account in the 'Specify Create Put in use Transactions' window, and you have not specified a Capital Investment Account in the Account Usage Assets setting.
There is no valid record in the Number Series - Transactions setting (in the Nominal Ledger). This might be a fault in the setting itself, or it might be because the default Transaction Number on the 'Ser Nos' card of the current user's Person record or in the Number Series Defaults setting (in the System module) is not in a valid Number Series. This problem will usually occur at the beginning of a new year. If a change is made to the 'Ser Nos' card of the Person record, you will need to quit Hansa and restart for it to take effect.

Revaluate Asset Acquisition Value

This function together with the Revaluation Factors and Revaluation Run Lists settings allows you to create records in the Revaluation register for several Assets at once. It is specifically designed for use in countries where Assets are revalued periodically on state authorisation (usually because of inflation), but can also be used in more general circumstances when it is necessary to revalue several Assets at one stroke.

When you revalue an Asset using this function, a record is created in the Revaluation register. The Starting Value in this record will be used as the basis for calculating depreciation from the Revaluation Starting Date, in place of the Asset's Purchase Value.

Follow these steps:

Use the Revaluation Factors setting to define the formulae to be used in calculating the new value of each Asset.
If necessary, enter a record in the Inflation Coefficients setting. This will be used in Russia to revalue Assets by different percentages depending on when they were purchased.
Use the Revaluation Run Lists setting to specify the Assets that are to be revalued.
Use the 'Revaluate Asset Acquisition Value' Maintenance function to create the appropriate records in the Revaluation register.

Click the links for detailed descriptions of these settings and the Maintenance function.

Revaluate Asset Acquisition Value - Revaluation Factors

Use this setting to define the formulae to be used in calculating the new value of each Asset.

In some countries (e.g. Portugal and Russia), Assets can be revalued due to inflation, on receipt of official authorisation. You should enter a new record to the Revaluation Factors setting for each authorisation issued. You can enter the serial number of the official authorisation document to the corresponding Revaluation Factor record. From there, it will be copied to all consequent Revaluation records and to Nominal Ledger Simulations and Transactions, providing an easy audit trail.

To enter a Revaluation Factor, open the 'Settings' list in the Assets module and double-click 'Revaluation Factors'. The 'Revaluation Factors: Browse' window is opened, showing Revaluation Factors already entered. Click [New] in the Button Bar or use the Ctrl-N (Windows and Linux) or ⌘-N (Macintosh) keyboard shortcut. The 'Asset Revaluation Factor: New' window is opened.

In this example, we have specified that Assets purchased before January 1st, 2003 are to be revalued by a Rate of 1.5, while those purchased after that date are to be revalued by a Rate of 1.1.

No.: Paste Special Select from another Number Series; The number of the Revaluation Factor: Hansa will enter the next unused number from the first number sequence entered in the Number Series - Revaluation Factors setting. You may change this number, but not to one that has already been used.
Rev. Date: Paste Special Choose date; The date the Revaluation Factor was entered. This is for information only.
Description: The comment that you enter here will be shown in the 'Paste Special' list: it should therefore be descriptive enough to make the selection of the correct Revaluation Factor easy for all users.
Legal Date: Paste Special Choose date; If you are entering a Revaluation Factor because you have received an official authorisation to revalue your Assets, enter the date of the authorisation here.
Legal Code: If you are entering a Revaluation Factor because you have received an official authorisation to revalue your Assets, enter the serial number of the authorisation here. This will be copied to the Legal Code field in all Revaluation records created using this Revaluation Factor, and to any Simulations created using the Russian model.
N/L Account: Paste Special Account register, Nominal Ledger/System module; In some countries, the revaluing of Assets should be recorded in the Nominal Ledger. The 'Revaluate Asset Acquisition Value' Maintenance function can create a Simulation for each Asset Revaluation, which can then be checked and converted to a Transaction. This Simulation is suitable for users in Russia. This Account will be credited with the increase in value of each Asset (or debited if the value decreases) and debited with the change in depreciation resulting from the Revaluation (credited if the Asset decreases in value). No Simulations will be created if this field is blank, or if you enter a non-existent Account.

Use the grid to specify how the value of each Asset is to be recalculated, depending on its Purchase Date. At least one row of the grid should be completed.

Start, End

Paste Special Choose date

Any Asset whose Purchase Date falls in between these dates will be revalued using the Rate specified in the field on the right.

If you want to revalue all your Assets using a single Factor, you can leave these fields blank. You can also leave the Start Date blank to revalue all Assets purchased before the End Date, or you can leave the End Date blank to revalue all Assets purchased after the Start Date.

Assets will not be revalued if:

They do not have a Purchase Date.
They have been marked as Inactive.
They have been sold or written off using an approved record in the Disposal register.

Rate

When each Asset is revalued, its Purchase Value and Residual Value will be multiplied by the Rate specified here.

For example, if the Purchase Value of an Asset is 50000 and the Rate is 2, the Starting Value of that Asset in the new Revaluation record will be 50000 x 2 = 100000.

If you want the Starting and Residual Values in the Revaluation to be less than the original figures, use a Rate that is less than 1.

If the Inflation Coefficients setting contains a record with a Valid From date that is the same or earlier than the Run List date, that record will also be used to revalue your Assets. If this Rate is 1, the original value of each Asset will be multiplied by the Coeff. in the Inflation Coefficient record only. If this Rate is not 1, then the original value of each Asset will be multiplied both by this Rate and the Coeff. in the Inflation Coefficient record. If you want to use this Rate only, make sure there are no records in the Inflation Coefficients setting, or that any that are there have Valid From dates that are later than the Run List date.

When you run the 'Revaluate Asset Acquisition Value' Maintenance function, you will be able to choose whether the Rate is to be applied to the original Purchase and Residual Values of an Asset, or to the Starting and Residual Values in the most recent previous Revaluation.

Comment

Any comment.

Revaluate Asset Acquisition Value - Inflation Coefficients

The Inflation Coefficients setting provides an alternative method of defining the formulae to be used in calculating the new value of each Asset. It will be used in Russia where Assets can be revalued using official rates to compensate for inflation.

An Inflation Coefficient can only be used together with a Revaluation Factor, it cannot be used instead of a Revaluation Factor. The 'Revaluate Asset Acquisition Value' Maintenance function will have no effect if there are no Revaluation Factors, but it will operate correctly if there are no Inflation Coefficients. If you want to change the value of your Assets using an Inflation Coefficient only and therefore want your Revaluation Factor to have no effect, enter a Rate of 1 in the Revaluation Factor.

Users in Portugal should also enter records in the Inflation Coefficients setting. Inflation Coefficients are not used by the 'Revaluate Maintenance Acquisition Value' Maintenance function in Portugal, but they are used in the Fiscal Year Write-offs report.

To enter an Inflation Coefficient, open the 'Settings' list in the Assets module and double-click 'Inflation Coefficients'. The 'Inflation Coefficients: Browse' window is opened, showing Inflation Coefficients already entered. Click [New] in the Button Bar or use the Ctrl-N (Windows and Linux) or ⌘-N (Macintosh) keyboard shortcut. The 'Inflation Coefficient: New' window is opened.

Valid from: Paste Special Choose date; Enter the date on which the Inflation Coefficient takes effect.
Comment: Any comment.

Use the grid to specify how the value of each Asset is to be recalculated, depending on its Purchase Date. At least one row of the grid should be completed.

Date

Any Asset whose Purchase Date falls on or after this date will be revalued using the Coeff. specified in the field on the right.

Coeff.

When each Asset is revalued using the Russian model, its Purchase Value will be multiplied by the Coefficient specified here.

For example, if the Purchase Value of an Asset is 50000 and the Coeff. is 2, the Starting Value of that Asset in the new Revaluation record will be 50000 x 2 = 100000.

If you want the Starting Value in the Revaluation to be less than the original Purchase Value, use a Coeff. that is less than 1.

If the Rate in the relevant Revaluation Factor is not 1, then the original value of each Asset will be multiplied both by this Coeff. and the Rate in the Revaluation Factor record. If you want to use this Coeff. only, make sure you have set the Rate in all Revaluation Factor records to 1.

When you run the 'Revaluate Asset Acquisition Value' Maintenance function, you will be able to choose whether the Coeff. is to be applied to the original Purchase Value of an Asset, or to the Starting Value in the most recent previous Revaluation.

Revaluate Asset Acquisition Value - Revaluation Run Lists

Use this setting to specify the Assets that are to be subject to the revaluation.

To enter a Revaluation Run List, open the 'Settings' list in the Assets module and double-click 'Revaluation Run Lists'. The 'Revaluation Run Lists: Browse' window is opened, showing Run Lists already entered. Click [New] in the Button Bar or use the Ctrl-N (Windows and Linux) or ⌘-N (Macintosh) keyboard shortcut. The 'Revaluation Run List: New' window is opened.

In the example illustrated, we have specified that Assets belonging to the "VEHICS" Category are to be revalued using the Factor illustrated below. Assets that do not belong to this Category will not be revalued.

No.: The unique identifying number of the Run List record. You may change the default, but not to a number that has already been used.
Rev. Date: Paste Special Choose date; Specify the date of the Run List here. You can only enter one Run List for a particular date.; The 'Revaluate Asset Acquisition Value' Maintenance function will search for the Run List with a specified date and implement it.; This date will be copied to the Transaction Date and the Starting Date 1 and 2 fields in all Revaluation records created using this Run List, and to any Simulations created using the Russian model.
Comment: Any comment.

Use the grid to list the Assets that are to be subject to the revaluation. Each row can contain a single Asset or all Assets in an Asset Category.

Row Type: Paste Special Choices of possible entries; This field can contain one of two entries: "Asset" or "Asset Category". It indicates whether the Code (the middle field) refers to an Asset or an Asset Category, and also determines the contents of the 'Paste Special' list available from that field. Use 'Paste Special' to increase input speed.
Code: Paste Special Asset or Asset Categories setting; Specify here the Asset or Asset Category to be revalued. The contents of the 'Paste Special' list will depend on the Row Type.; This field must contain a value: do not leave it blank in the hope of revaluing all Assets.
Factor: Paste Special Revaluation Factors setting, Assets module; Enter the Revaluation Factor that is to be applied to the Asset(s) specified in the field to the left. The Revaluation Factor contains the formula used to calculate the new value of the Asset.

Revaluate Asset Acquisition Value - The 'Revaluate Asset Acquisition Value' Maintenance Function

Once you have entered the Revaluation Factors, Revaluation Run Lists and, if appropriate, Inflation Coefficients, run the 'Revaluate Asset Acquisition Value' Maintenance function to create the appropriate Revaluation records.

The function searches for Revaluation Run Lists with a specified date. It then creates Revaluation records by following the instructions in the grid area of each Run List. For example, the Run List illustrated above will cause a separate Revaluation record to be created for each Asset belonging to the "VEHICS" Category. Each Asset will be revalued using the Factor illustrated below, and, in Russia only, using the Inflation Coefficient applying at the Run List date.

Revaluation records will not be created for Assets that have been disposed of (sold or written off using an approved record in the Disposal register) or marked as Inactive. In addition, a Revaluation record will not be created for an Asset if one already exists with a Transaction Date that is the same as the Run List Date.

However, Revaluation records will be created for Assets that have been fully depreciated using Straight Line Depreciation Models. For example, an Asset with a 20% Straight Line Depreciation Model will be fully depreciated after five years. A Revaluation record will be created for this Asset if you run this Maintenance function in the sixth or subsequent year. If you do not want this to happen, mark the Asset as Inactive at the end of its life.

Period

Paste Special Reporting Periods setting, System module

This field is only used in Russia, where the change in depreciation resulting from the Revaluation is recorded in the Nominal Ledger. The period over which the change in depreciation is to be calculated will begin with the Start Date of each Asset and end with the last date of the period specified here.

Run List Date

Paste Special Choose date

Specify here the date of the Revaluation Run List record that you want to use to create Revaluation records. You must enter a date if the Maintenance function is to have any effect.

In Russia, if there are any records in the Inflation Coefficients setting, the Maintenance function will search for the one applying at the date specified here (i.e. the one with the nearest date earlier than that specified here).

Start From

Use these options to specify how the new Starting and Residual Values of each Asset are to be calculated.

Purchase Value: The new Starting Value will be calculated by multiplying the Purchase Value of the Asset by the Rate in the relevant Revaluation Factor record and, in Russia only, by the Coeff. in the relevant Inflation Coefficient record. This figure will appear in the Starting Value 1 and 2 fields in the new Revaluation.; The new Residual Value will be calculated by multiplying the original Residual Value of the Asset by the Rate in the relevant Revaluation Factor record.
Last Revaluated Value: The new Starting Values 1 and 2 will be calculated by multiplying the Starting Values 1 and 2 in the latest existing Revaluation record by the Rate in the relevant Revaluation Factor record and, in Russia only, by the Coeff. in the relevant Inflation Coefficient record. The Transaction Date field in the Revaluation is used to determine which is the latest Revaluation record, not the Starting Date field. If there is no previous Revaluation record, the Purchase Value of the Asset will be used.; The new Residual Value will be calculated by multiplying the Residual Value in the latest Revaluation record by the Rate in the relevant Revaluation Factor record.
Last Official Revaluation: This is similar to the Last Revaluated Value option above, but uses the latest existing Revaluation record with a Legal Code.

N/L Simulation

In some countries, the revaluing of Assets should be recorded in the Nominal Ledger. Use one of these options if you want a Simulation to be created for each Asset Revaluation. You can check this Simulation later and convert it to a Transaction.

If you choose to have Simulations created, one will be created for each Asset. Note that the resulting Simulations are different to those created by the 'Create NL Simulation' function on the Operations menu of the Revaluation window.

If Simulations are not created when expected, the following are possible causes: there is no valid Number Series for the current year in the Number Series - Simulations setting in the Nominal Ledger; the Asset-Asset Category-Asset Class chain is broken, or valid Accounts have not been entered in the Asset Class; or a valid Account was not entered in the Revaluation Factor record. Note that the function will still create Revaluations, so you will need to delete these Revaluations as well as correcting the error preventing Simulations from being created, before running the function again.

No

Choose this options if you don't want Simulations to be created by the Maintenance function.

Russian

Choose this option if you want Simulations to be created using the Russian model.

If the Asset has increased in value, that increase is debited to the Asset Account specified in the relevant Asset Class and credited to the N/L Account specified in the relevant Revaluation Factor record. These postings are reversed if the Asset has decreased in value. The Objects in all postings are taken from the Asset Class (Obj. field).

The change in depreciation resulting from the Revaluation is then debited to the N/L Account specified in the relevant Revaluation Factor record and credited to the Depreciation Account specified in the relevant Asset Class. Again, these postings are reversed if the Asset has decreased in value. For example, if an Asset with a 20% Straight Line Depreciation Model increases in value from 50000 to 55000, the amount posted to these two Accounts will be (55000 x 20%) - (50000 x 20%) = 1000. The period for this depreciation calculation will be the life of the Asset so far (i.e. running from the Start Date to the end of the Period entered in the specification window). These two postings will only be made for Assets with a Straight Line Depreciation Model.

The Legal Code from the Revaluation Factor and the Inventory Number of the Asset are copied to the Text field of the Simulation.

The date of the Simulation will be the date of the Revaluation Run List record (i.e. the date that you entered in the 'Specify Revaluate Asset Acquisition Value' window).

You should also choose the Russian model if you want an Inflation Coefficient to affect how the new Asset values are calculated. Usually, these are calculated by multiplying the previous Asset value by the Rate in the relevant Revaluation Factor record. If you choose this option, the previous Asset values are multiplied by the Coeff. in the relevant Inflation Coefficient record as well.

Revaluate Asset Acquisition Value - Example

In this example, the Revaluation Factor and Run List illustrated above will be applied to these two Assets (because they both belong to the "VEHICS" Asset Category specified in the Revaluation Run List):

The first Asset has a Purchase Date of 1st January 2002, and therefore will be revalued by a Factor of 1.5 (determined in the Revaluation Factor), while the second Asset was purchased on 1st June 2003 and therefore will be revalued by a Factor of 1.1.

When the 'Revaluate Asset Acquisition Value' function is run, "1/1/2005" is entered as the Run List Date, to ensure the correct Run List is used. The function will create these two Revaluation records (one for each Asset):

The new value of the first Asset is 15000 x 1.5 = 22500. The new value of the second Asset is 17500 x 1.1 = 18250. These new values appear in both the Starting Value 1 and 2 fields, and will be used as the basis for depreciation calculations the next time these are carried out. How they will be used will depend on whether the Start From Last Revaluated Value option is used. Please refer to the page describing the 'Create Depreciation Simulations' Maintenance function for further details and an example.

Update Dept on Asset

This function will be useful if you are using the Rental module and your Assets are also Rental Items. It updates the Department information in the Asset register so that it is the same as the Location information in the Rental Item register.

First, you should specify a Department or Location in the 'Specify Update Dept. on Asset' window. 'Paste Special' lists Locations. You must specify a Department or Location, otherwise the function will have no effect.

When you press [Run], the function will search for Assets in the specified Department (i.e. those where the Department field on the 'Owner' card contains the Department or Location that you specified). Assets marked as Inactive will be excluded. It will then search in the Rental Item register for the Rental Items that correspond to those Assets. These are Rental Items whose Serial Numbers and Inventory Numbers are both the same as the Serial Number of one of the Assets in the specified Department.

The function will then check whether each Rental Item is in stock. If a Rental Item is in stock, its current Location will be written to the Department field in the corresponding Asset record. If a Rental Item is not in stock, the Original Location in the Rental Item record will be written to the Department field in the corresponding Asset record.

You can produce an Update Dept on Asset report before using this function to preview the Assets whose Departments will be updated.

Update Purchase Value on Asset

Before Hansa version 4.2, the Quantity of an Asset (on the 'Owner' card) did not affect the calculation of depreciation and was for information only. This meant that before version 4.2 the Purchase Value (on the 'Purchase' card) was a total figure, but in 4.2 it became a unit figure. If you have Assets that you entered in Hansa 4.1 or earlier, you should check the Quantity is not zero or blank in any Asset record, otherwise depreciation will not be calculated. If the Quantity in any Asset is greater than one, you should then make sure its Purchase Value is a unit figure (and other figures such as Initial Depreciation, Residual Value and Fiscal Value as well). You can use this Maintenance function to convert Purchase Values to unit figures, although it will not convert the other figures. It will do this by dividing the existing Purchase Value by the Quantity.

Asset: Paste Special Asset, Assets module; Range Reporting Alpha; Specify here the Assets whose Purchase Values are to be converted to unit figures.