Reverse a CIP asset capitalization—Fixed Assets Management

If you capitalize an asset by mistake, you can reverse the capitalization. This lets you make corrections such as changing the capitalization date or adding additional costs. Reversing preserves posted accounting activity by creating offsetting journal entries instead of deleting existing journal entries.

Reversing a capitalization does the following:

  • Creates an offsetting journal entry by swapping the debit and credit lines from the original capitalization journal entry.

  • Returns the asset to the Construction in Progress state.

  • Retains the capitalization record on the CIP tab, marks it as reversed, and records the reversal date.

  • Assets with reversed capitalizations cannot be deleted.

  • A capitalization that was reversed cannot later be reverted.

Before you begin

Verify the following:

  • The asset is active and in the Ready for review state.

  • No transfers or cost adjustments occurred after the capitalization date. Reverse any subsequent activity first.

Reverse a capitalization

SubscriptionFixed Assets Management
Regional availability

All regions

User typeBusiness
Permissions

Fixed Assets Management

  • Asset: List, View, Edit

Configuration

  • Correction treatment must be set to Reverse in Fixed Assets Management configuration.

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

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

  2. Find the capitalized asset that you want to reverse.

  3. Select the asset's name to view it.
  4. Select the CIP tab.

  5. Find the capitalization that you want to reverse.

  6. At the end of the row, select More actions > Reverse.

  7. Select a Reversal date.

    The reversal date must meet the following requirements:

    • Be on or after the capitalization date.

    • Be in an open period.

  8. Select Reverse to confirm.

    A link to the reversal journal entry is available on the asset's CIP tab.