Item Devaluation

This chapter describes item devaluation in TRASER DMS 365. Item devaluation is used to adjust the inventory value of the stock, i.e. to devalue it. This chapter is divided into the following sections:

Setting up Devaluation Rules
Setting up Reset of Devaluation
Carrying out Devaluation via the Revaluation Journal
Setting up a Separate Account for Devaluation of Item Values

Setting up Devaluation Rules

You can set up devaluation rules in TRASER DMS 365. To do so, please proceed as follows:

Use the quick search (ALT+Q) to find the Devaluation Rules page.
To define a new devaluation rule, click on New in the menu bar.
In the Code field, enter a unique code for the devaluation rule.
In the Description field, enter a significant 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 have set up the utilization of a separate account for the devaluation of item values, the Gen. Business Posting Group field will also be displayed. In this case, enter the general business posting group you set up.
In the Devaluation Levels FastTab, fill in the columns according to the following table:

Column	Description
Level	Enter the devaluation level.
Description	Enter a significant description for the devaluation level.
Devaluation %	Enter the percentage by which the item price should be reduced, e.g. 20% if you want the price to be devalued by that amount.
Devaluation Period	Enter the time period after which the devaluation shall occur, e.g. 3M for devaluating the item according to the specified percentage after 3 months.

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 define which entry types will automatically reset the devaluation levels back to zero.

Setting up Reset of Devaluation

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

Use the quick search (ALT+Q) to find the Devaluation Rules page.
Select the devaluation rule for which you want to set up a reset of the devaluation.
Click on Devaluation Setup in the menu bar.
In the Active column, enable the checkboxes for the entry types that are to serve as triggers for resetting the devaluation levels. The following entry types are available for configuration:
- Purchase
- Sale
- Positive Adjustment
- Negative Adjustment
- Consumption
- Output
- Assembly Consumption
- Assembly Output
Once you have defined which entry types trigger a devaluation reset, you can further specify in the Document Types FastTab which document types within each entry type will specifically initiate the reset. Select the desired entry type, then in the Document Types FastTab, enable the checkboxes in the Active column for the document types that will trigger a devaluation reset.

You have successfully set up the reset of item devaluation. Movement of items within the activated entry and document types triggers a reset of devaluation from the date of the item movement, reinitializing the devaluation at level 1. The next section describes how to carry out a devaluation.

Carrying out Devaluation via the Revaluation Journal

You can carry out a devaluation via the revaluation journal in TRASER DMS 365. To do so, please proceed as follows:

Use the quick search (ALT+Q) to find the Item Revaluation Journals page.
In the Batch Name field, select the appropriate journal batch name.
Click on Home > Calculate Devaluation... in the menu bar.

Tip

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

Fill in the fields according to the following table:

Field	Description
Posting Date	Enter the posting date for the devaluation.
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.
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	Optionally enter a location if you want devaluation values to be shown only for a particular location.
Variant Filter	Optionally 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.

Note

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

To post the devaluation, click on Home > Post or Post and Print in the menu bar.
Click Yes to confirm the dialog window.
The values will be posted.

You have successfully can ied out a devaluation via the revaluation journal.

Setting up a Separate Account for Devaluation of Item Values

If needed, you can set up in TRASER DMS 365 that the devaluation is initially posted to a separate value adjustment account instead of the inventory account. To do so, please proceed as follows:

Use the quick search (ALT+Q) to find the Inventory Setup page.
In the General FastTab, activate the toggle switch Activate Value Adjustment Accounts for Devaluation.
Use the quick search (ALT+Q) to find the Devaluation Rules page.
In the displayed Gen. Business Posting Group field, select the posting group whose account will be used as the value adjustment account.

Tip

You can also store a value adjustment account for individual locations in the Inventory Posting Setup. To do so, please proceed as follows:

Use the quick search (ALT+Q) to find the Inventory Posting Setup page.

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.