Asset Valuation is an accounting exercise that is normally done once a year to answer two questions:
- what is the value of your assets that should be declared on your balance sheet
- what is the cost of the assets that has been consumed over the Valuation Period, that is how much have they depreciated?
New Asset Valuation Module
RAMM now has two parallel Asset Valuation systems. You use the one you prefer. The existing one is accessed from RAMM Manager and is described in the Asset Valuation manual. The new AV system is in the Applications folder at the Menu. Watch the videos below to see how to use it.
The new Asset Valuation application has three main differences from the existing one.
- Fair Value assessments for assets can be imported into RAMM. These overrule system valuations.
- A history of Asset Valuation records is now kept in the RAMM database.
- Valuation records for individual assets can be associated with the asset record and accessed from the Asset Valuation Detail report.
Before You Start
Here is a brief overview of the Asset Valuation module. Watch this first.
Getting Started with Asset Valuation (2:44)
To set up and run Asset Valuation you need to perform a number of steps in order.
Asset Valuation Process (3:50)
You need three permission sets to set up and run Asset Valuation. Here are the details.
Asset Valuation Permissions (3:20)
The Valuation Period is usually the same as the financial year. You can define your own Valuation Periods. They must be one or more complete months in duration. They are an Asset Valuation item and must exist before you can set up and perform Asset Valuation.
Valuation Periods are an item and must exist before you can start AV configuration.
Valuation Period (2:19)
Valuation Periods are one or more complete months in duration and quick to define.
Defining a Valuation Period (0:58)
The Asset Types for which you can perform Asset Valuation includes all the RAMM Asset Types suitable for Asset Valuation and also all the UDTs that have been created with the Asset Valuation option selected. Notice that, for Asset Valuation, Bridges, Signs, Street Lights, and Traffic Signals have been divided into their constituent components by default. If Roads are included in your Asset Valuations, you can generate Road Components based on characteristics of the Carriageway, Surface, Pavement, or Treatment Length.
You perform Asset Valuation for RAMM Asset Types and UDTs that are suitable for AV.
Asset Types (2:31)
You may have to create Components for Asset Valuation on complex Asset Types.
There are two types of valuation records that you can import into Asset Valuation – Assessed Values and Accumulated Depreciation. An Assessed Value is provided by a valuer who has undertaken an assessment or revaluation of an individual asset. Accumulated Depreciation is the initial cost and depreciation records that you may import into the Asset Valuation module before running the Asset Valuation calculation for the first time. The import files need to be comma-delimited with specific columns.
You can import Assessed Values and Accumulated Depreciation records.
Import Asset Valuation Data (3:06)
You can import Assessed Values for one asset type at a time.
Importing Fair Values (4:45)
Import Accumulated Depreciation data before running the AV Calculation for the first time.
Import Accumulated Depreciation Data (3:56)
You use Road Components to value all the roads or land in your network, so long as the core aspect you use to value roads and land is the Carriageway, Surface, Pavement, or Treatment Length. Road Components are user-generated asset records based on the characteristics you define. They allow contiguous lengths of road that have the same characteristics for valuation purposes to be merged and valued as a single record.
You use Road Components to value all the roads or land in your network.
Road Components (3:11)
You determine when one Road Component will end and another start.
Adding a Road Component (3:32)
The Component tables can be populated from your RAMM database at any time.
Populating a Road Component (1:57)
Configuring the assets to be valued is the largest part of the Asset Valuation process. There is a number of steps to work through starting with selecting the assets to include in the valuation. You then configure each asset type in turn. It is strongly suggested that you configure one asset type at a time.
You configure your assets from the Default Commission Date to the Asset Subtypes.
Asset Configuration (2:21)
Condition affects an asset’s remaining useful life. It is recorded using the NAMS scale.
Condition and Asset Valuation (4:38)
Use Condition Rules to group rating information into a Condition category.
Condition Rules (2:40)
Condition Rule Criteria are combinations of Table, Column, Operator and Value.
Defining Condition Rule Criteria (2:05)
Condition Effects change an asset’s RUL if its Condition Rating is different from expected.
Adding a Condition Effect (2:21)
Parent Criteria which apply to every Asset Subtype you create for an asset class.
Adding Parent Criteria (1:28)
Asset Subtypes are assets with similar characteristics grouped for Asset Valuation.
Asset Subtypes (5:36)
Asset Subtypes have their own Description, Unit of Measure, Condition and Calculation.
Adding an Asset Subtype (4:05)
Asset Subtype Criteria are combinations of Table, Column, Operator and Value.
Defining Asset Subtype Criteria (2:30)
Subtype Costs parameters determine the value of Assets for an Asset Subtype.
Defining Subtype Costs (3:43)
Period Costs determine which Subtypes Costs will be used in a valuation calculation.
Defining Period Costs (4:20)
Imagine you have an asset which would cost $10,000 to replace today. If it had a Total Useful Life of ten years with a Residual Value of zero, and it was placed in service in 2010, then you expect it to be replaced in 2020 when it becomes worthless. You run the Asset Valuation calculation to determine the asset’s value on a particular date and the amount that it has depreciated to that date.
Watch this video before you run the Valuation Calculation for the first time.
Valuation Calculations (7:57)
The accuracy of your Valuation Calculations will match your asset data and AV set up.
Running Valuation Calculations (2:07)
You analyse your Asset Valuation results with the Valuation Detail and Valuation Summary reports. The Valuation Detail report displays individual asset records. You use this to check valuations of individual assets. The Valuation Summary report gives you the total values you need for reporting.
Use the reports for AV data analysis. Once audited, finalise the settings for the AV period.
The Asset Valuation Summary report gives you the total values you need for reporting.
Asset Valuation Summary (2:23)
The Asset Valuation Detail report displays individual asset records for asset subtypes.
Asset Valuation Detail (3:21)