Capitalize a CIP asset—Fixed Assets Management

When you finish adding costs to a Construction in Progress (CIP) asset, capitalize it to 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.

  • 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.

    The capitalization date is the 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 appears on the asset’s CIP tab.

Next step: Place the asset in service.