The Revaluation and Modernization process in AccountingSuite allows you to increase the carrying value of an asset already in operation and simultaneously update its depreciation parameters. This is essential when you have incurred significant costs that enhance the asset’s value or extend its useful life beyond the original estimates .

This 3-steps workflow mirrors the logic of an initial asset acquisition, where costs are first accumulated on capitalization accounts before being transferred to the fixed asset account. The process is applicable to fixed assets, intangible assets, and other capitalized costs.

Step 1: Accumulating Costs on Capitalization Accounts #

Before increasing the asset’s value, you must first collect all associated modernization costs (materials, labor, contractor services, etc.) on a dedicated capitalization account. This follows the same principle as the initial asset acquisition process documented in the Asset Acquisition guide.

All costs related to the modernization/revaluation – such as construction work, components, and landed costs – are accumulated on account 18300 Acquisition and Creation of Fixed Assets / 19300 Acquisition and Creation of Intangible Assets, similarly to how they would be recorded during the initial construction or purchase of the asset .

Step 2: Transferring Cost to the Asset Account #

Once all modernization costs have been accumulated, you transfer the total amount to the asset’s operating account using a Journal Entry.

or for Intangible Assets

This entry increases the carrying value of the asset, reflecting the additional capitalized costs.

Step 3: Changing Asset Parameters #

After increasing the asset’s value, you must update its depreciation settings to reflect the new economic reality. This is done using the Transfer and Parameters Change document .

You can modify the following parameters:

• Useful Life – Extend or shorten the remaining service life
• Depreciation Status – Start, stop, or resume depreciation
• Depreciation Method – Switch between straight-line, declining balance, or units of production

Updating these parameters ensures that future depreciation is calculated correctly based on the new carrying amount and revised useful life.

Partial Decreases in Asset Value #

If you need to reduce the value of an asset (for example, due to damage, obsolescence, or partial disposal), use the Disposal document .

The Disposal document allows you to:

• Fully write off an asset after it has been completely used
• Partially write off an asset to adjust its value while keeping it in accounting at its residual value
• Write off an asset for subsequent sale