An account to which the increase in value of an asset as a result of revaluation is temporarily booked when an asset is sold.
The revaluation reserve is a commercial accounting tool used to recognise increases or decreases in the value of non-performing assets (P&L). Many factors, such as exchange rate fluctuations, interest rates, inflation and other market price fluctuations, can contribute to these changes.
In SAP Business One, the use of a clearing account for the revaluation reserve enables revaluations to be recognised correctly in the balance sheet. It is crucial that this account is configured correctly and that revaluations are recognised properly in order to present the company's performance appropriately. The Versino Financial Suite makes this process much easier.
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