If the value of an Asset changed suddenly due to any damages, it can be recorded using Asset Value Adjustment.

In fixed asset management, there are occasions where the value of an asset requires adjustment. For instance, if a laptop sustains damage, its value may decrease immediately. In such cases, it becomes necessary to recalibrate the asset’s value.

To access the Asset Value Adjustment, go to:

> Home > Assets > Maintenance > Asset Value Adjustment

1. Prerequisites

Before creating and using Asset Value Adjustment, it is advised to create the following first:

1. Asset
2. Enable ‘Calculate Depreciation’ in the Asset form.

2. How to create an Asset Value Adjustment

1. Go to the Asset Value Adjustment list, click on New.
2. Select an Asset whose value is to be adjusted.
3. Select a date.
4. Enter the current and new value of the asset.
5. Save and Submit.

Upon saving, the system will record a “Gain/Loss on asset revaluation” and modify the valuation of the asset. You can modify the cost center and include a finance book.

Upon submission, a Journal Entry is generated under the ‘Accumulated Depreciations’ account.

3. Related Topics

1. Asset Depreciation
2. Scrapping an Asset