Index-Based Asset Revaluation in Argentina with SAP S/4HANA Cloud

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Understanding Index-Based Asset Revaluation

In Argentina, companies must periodically revalue their fixed assets to reflect inflationary changes. SAP's new feature automates this process, ensuring compliance with local regulations. By using the Maintain Asset Revaluation Index app, businesses can create and manage revaluation indices, which are then applied to asset master records for accurate valuation. When Depreciation Posting runs, the depreciation area will also post the revaluation by the Index registered (if it was assigned in the Fixed Asset Master Data)” in the Manage Monthly Closing Activities section.

Prerequisites

To be able to post a revaluation in a specific depreciation area, revaluation must be allowed in the depreciation area. SAP has defined for each depreciation area in the predefined configuration whether revaluation is allowed.

Step 1: Maintain Asset Revaluation Index

1. Open the Maintain Asset Revaluation Index app.

2. Choose Create and specify the following details:

   - Revaluation Index ID: Freely selectable (independent of a specific company code)

   - Index Type: Replacement Value, Monthly

4. Choose Continue.

5. On the Asset Revaluation Index page, in the Header section, specify values for all mandatory (*) fields, such as Index Description, Country/Region Key, and Currency

6. In the Index Items section, specify the index values such as the Valid To dates. The system automatically sets the Valid From dates.

7. Choose Create.

 At this point, the index’s lifecycle status is Created.

8. Choose Activate to make the index available for valuation views.

The index’s lifecycle status changes to Active.
For more information: see Maintain Asset Revaluation Index | SAP Help Portal

Step 2: Create Asset Master Record

You can use the Manage Fixed Assets app (F3425) to create and view asset master records and display asset values for each valuation.

You can create a new fixed asset from scratch, or you can use an existing fixed asset as a template. For more information on Manage Fixed Assets app (F3425), please refer to Manage Fixed Assets | SAP Help Portal

For more information on how to create asset master data, please refer to Creating Fixed Asset Master Data | SAP Help Portal

 Post Asset Acquisition

1. Open the Post Asset Acquisition app.

2. Choose Post > Post Acquisition > Acquisition (Net).

3. Specify all the mandatory values.

4. Choose Simulate to simulate the accounting posting.

5. Choose the expand icon to display all ledgers.
For more details on the Post Asset Acquisition app, see
Post Asset Acquisition - And Quantity Adjustment | SAP Help Portal

View Journal Entries

1. In the Post Asset Acquisition app, go to the Journal Entries tab, choose the document number of the journal entry, and then choose Display Journal Entries – New Version.

The system navigates to the Display Journal Entries app.

2. Go to the Line Items tab and choose T-Account View.

The accounting postings are displayed in the Display Journal Entries – In T-Account View app.

For more details, see Display Journal Entries – In T-Account View | SAP Help Portal

View Revaluations for the Fixed Asset

1. Open the Manage Fixed Assets app.

2. Search for and open the fixed asset that you created in Step 2.

3. On the Valuation tab, click the small right arrow to choose the depreciation area for which you want to view the revaluations.

4. Display the values by fiscal year or currency, as required.

This section acts as the "Fixed Asset Explorer", where the values are displayed at different times of the fiscal year.

5. Choose Explain Key Figures for information on the displayed values.

6. Go to the Journal Entries tab to view all documents posted in this depreciation area for this asset. These values can be displayed by fiscal year and currency.

7. Go to the Depreciation tab to view ordinary and revaluated depreciations for different fiscal periods.

Manage Monthly Closing Activities

1. Open the Schedule Asset Accounting Jobs app.

2. Choose Create.

3. Choose the job template Depreciation Posting Run and choose Step 2.

4. Set a schedule for the job to run and choose Step 3.5. To schedule and run the job, choose Schedule.

6. Choose the job and download the results.

View the depreciation values in the Manage Fixed Assets app.

For more details, see Schedule Asset Accounting Jobs | SAP Help Portal

Reporting: Reporting | SAP Help Portal

1. Use the Asset Accounting Overview app to access key information and KPIs within the Asset Accounting area, and gain insight into current trends.

2. Use the Asset Balances app to display balances of fixed assets according to various criteria, such as company code, depreciation area, segment, or profit center.

3. Use the Asset Transactions app to check and evaluate daily or monthly operations in Asset Accounting by listing asset transactions posted to the general ledger.

4. Use the Depreciation Lists app as a supplement to the profit and loss statement.

5. Use the Asset History Sheet app to display the asset history sheet, which shows value changes to the fixed asset balances in a fiscal year for a depreciation area.

Summary

The explained process of revaluation by indexes allows to cover the basic cases of the inflation adjustment process for fixed assets in Argentina means a simpler way. Additionally, the complex and non-common cases could be supported by extensibility.