Capitalize a CIP asset—Fixed Assets Management

When you finish adding costs to a Construction in Progress (CIP) asset, capitalize it to move the accumulated costs from the CIP GL account to the Asset GL account and complete the construction phase.

Capitalizing an asset does the following:

  • Creates a journal entry in the Fixed Assets Management journal to move accumulated costs from the CIP GL account to the Asset GL account.

  • Changes the asset’s state to Ready for review.

  • Prevents additional costs from being added through the CIP workflow.

  • Records the capitalization on the asset's CIP tab and includes a link to the capitalization journal entry.

Before you begin

Verify the following:

  • The asset is in the Construction in progress state.
  • The asset has a CIP GL account assigned.
  • The asset is active.
  • The asset has a cost, and the costs on the asset's CIP tab are accurate and complete.

Capitalize a CIP asset

SubscriptionFixed Assets Management
Regional availability

All regions

User typeBusiness
Permissions

Fixed Assets Management

  • Asset: List, View, Edit

Configuration

  • Construction in Progress (CIP) must be enabled in Fixed Assets Management Configuration.

  • A Fixed Assets Management journal must be assigned in Fixed Assets Management Configuration to record CIP asset capitalizations.

  1. Go to Fixed Assets Management > All > Assets.

  2. Find the CIP asset that you want to capitalize.

  3. Select the asset's name to view it.
  4. At the top-right of the page, select Capitalize.

  5. Select a Capitalization date.

    This date is the GL posting date of the capitalization journal entry.

    The capitalization date must meet the following requirements:

    • Be on or after the acquisition date.

    • Be in an open period.

  6. Select Capitalize to confirm.

    A link to the capitalization journal entry is available on the asset’s CIP tab.

Next step: Place the asset in service.