Updated: 07.02.2024

Item Devaluation

The item devaluation in TRASER DMS 365 is used to adjust the inventory value of items, i.e. to devaluate them. This chapter is divided into the following sections:

Setting up Reset of Devaluation

A setup table is available for you to define the ledger entries that trigger the reset of devaluation levels. To set up the reset of the devaluation, please proceed as follows:

  • Use the quick search (ALT+Q) to find the page Devaluation Setup in TRASER DMS 365.
  • The page Devaluation Setup is displayed.
  • Activate the toggle switch for those ledger entries that should initiate the reset of devaluation levels.

You can choose from the following options:

  • Purchase
  • Sale
  • Positive Adjustment
  • Negative Adjustment
  • Consumption
  • Output
  • Assembly Consumption
  • Assembly Output

You have successfully set up the reset of devaluation levels. The movement of items within activated areas leads to the resetting of devaluation for the respective items from the date of the item movement, initiating a restart at devaluation level 1. The next section describes how to set up devaluation rules.

Setting up Devaluation Rules

To set up devaluation rules, please proceed as follows:

  • Use the quick search (ALT+Q) to find the page Devaluation Rules in TRASER DMS 365.
  • The page Devaluation Rules is displayed.
  • To set up a new devaluation rule, click on New in the menu bar.
  • The window Devaluation Rule is displayed.
  • In the Code field, enter a unique code for the devaluation rule.
  • In the Description field, enter a clear description for the devaluation rule.
  • In the Start Date field, enter a start date for the devaluation rule.
  • In the End Date field, enter an end date for the devaluation rule.
  • If needed, you can also enter an item filter to which the devaluation rule should be applied in the Item Filter field.
  • If you've set up your preference for utilizing a separate account for the devaluation of item values, the Gen. Business Posting Group field will also visible on this page. Enter the general business posting group you set up in this field.
  • In the Devaluation Levels FastTab, fill in the following columns:
Column Description
Level Enter the devaluation level.
Description Enter a clear description for the devaluation level.
Devaluation % Enter the percentage by which the item price is to be reduced in the calculation, for example 20% if a devaluation of 20% is required.
Devaluation Period Enter the time frame for when the devaluation is scheduled to happen, e. g. 3M to signify a devaluation of the item based on the specified percentage after 3 months.
  • Your changes are saved automatically.

You have successfully set up a devaluation rule. You can repeat these steps to set up more devaluation rules. The next section describes how to carry out a devaluation via the Item Revaluation Journal.

Carrying out Devaluation via the Revaluation Journal

To carry out a devaluation via the revaluation journal, please proceed as follows:

  • Use the quick search (ALT+Q) to find the page Item Revaluation Journals in TRASER DMS 365.
  • The page Item Revaluation Journals is displayed.
  • In the Batch Name field, enter the applicable journal batch name.
  • Click Calculate Devaluation... in the menu bar.

Tip

To identify and correct possible errors before posting the devaluations, you can also first create a test report. To open the test report, click on Calculate Devaluation - Test... in the menu bar.

  • The page Calculate Devaluation is displayed.
  • Fill in the following fields according to the table below.
Field Description
Devaluation Rule Code Enter the Devaluation Rule for the devaluation. If you cannot make entries in this field, you might need to fill in the posting date first.
Posting Date Enter the posting date for the devaluation.
Document No. Enter a document number for the devaluation. You can choose the document number as per your requirements.
Calculate Per Specify whether the devaluation should be carried out per Item Ledger Entry or per Item. If you select Item Ledger Entry, the system will check the combination of item and serial number to determine whether the conditions for a possible devaluation are met.
By Location Activate this toggle switch if the devaluation should be carried out by location.
By Variant Activate this toggle switch if the devaluation should be carried out by item variant.
Update Standard Cost Activate this toggle switch if the standard cost of the item should be updated according to the calculated devaluation value. The functionality is only available if you select Item in the Calculate Per field.
Calculation Base Enter the calculation base for the devaluation.
Location Filter Optional Enter a location if you want devaluation values to be shown only for a particular location.
Variant Filter Optional Enter an item variant if you want devaluation values to be shown only for a particular item variant.
  • Click OK to create the devaluation.
  • The items eligible for devaluation will be written into the lines of the Item Revaluation Journal.
  • Check the values in the lines.
  • To post the devaluation, click on Post or Post and Print in the menu bar.
  • The values will be posted.

Note

To view all details on the item devaluation process, click on Related > Item > Devaluation Entry in the menu bar of the Item Revaluation Journal.

You have successfully carried out a devaluation. The next section describes how to set up a separate account for the devaluation of item values.

Setting up separate Account for Devaluation of Item Values

If needed, you can choose to have the devaluation not posted directly to the inventory account but initially posted to a separate value adjustment account. To set this up, please proceed as follows:

  • Use the quick search (ALT+Q) to find the page Inventory Setup.
  • The page Inventory Setup is displayed.
  • In the General FastTab, activate the toggle switch Activate Value adjustment Accounts for devaluation.

You have successfully activated the usage of a separate value adjustment account for devaluation values. You now have the option to specify a general business posting group on the Devaluation Rules.

You can also store a value adjustment account on the locations in the Inventory Posting Setup. To set this up, please proceed as follows:

  • Use the quick search (ALT+Q) to find the page Inventory Posting Setup.
  • The page Inventory Posting Setup is displayed.
  • Navigate to the Value Adjustment Account column and enter the account you want to use for the devaluation posting.

You have successfully set up a separate account for the devaluation of item values.