Revaluations of locations to increase land and / or capital improvements attributable to a location /s are not directly associated to the sales process, rather a revaluation to update values attributable to a location either up or down.
The revalued cost will then apply moving forward as part of the sales process and associated timing of revenue recognition.
For example, in Australia the Valuer General will revalue land in the cemetery, meaning the locations remaining to be sold may need to have the land component adjusted up or down.
If land valuation increases, the balance sheet accounts GL Land Valuation Account increases (Debit) to capture the higher value and the GL Valuations clearing account decreases (Credit)
If land valuation decreases, the balance sheet account GL Land Valuation Account decreases (Credit) to write off the lesser value and the GL Valuations clearing account increases (Debit).
Capital improvements:
For example, where a lawn grave area within the cemetery is retrofitted with beams to place plaques on beams rather than simply being installed on the lawn.
Where a significant part of the area may still be available for sale, the cemetery is likely to want to capture the increase in the cost of this area per location sold.
If capital improvement value increases, the balance sheet accounts GL Capital Improvements Valuation Account increases (Debit) to capture the higher value and the GL Valuations clearing account decreases (Credit).
It is important to note:
There are two ways to update the values that appear on the location summary screen. One does not result in a revaluation journal being processed, the other produces a journal entry in Sage 300.
The first option is to manually update the values. Note this does not trigger any general ledger revaluation journals, it simply updates the values against the location.
This method only allows one location to be updated at a time.
