This system process automates the management and recognition of capital balances with regard to construction in progress. The process will generate Fixed Asset transactions that increase, change the Fixed Asset Type, and cancel Fixed Asset Components. The process starts with the definition of a relationship between a construction project and a fixed asset with an Asset Type of Construction In Progress. As eligible cash expenditures are posted to the project those costs are loaded to online inquiries for review and reconciliation. Those costs approved are then added to the value of the asset under construction. When the time comes to capitalize the asset, the system then converts the asset to a permanent Asset Type. In the event the project is cancelled, those accumulated costs can be automatically reversed.
Setup is performed on the following reference pages for all such projects:
System Options: Fixed Asset tab – Program Fixed Asset Linking indication turns on feature. Refer to the "System Options" section in the Fixed Assets User Guide for more information.
Posting Code – What types of postings are eligible, where an initial set is delivered. Refer to the "Posting Code" section in the Financial Administration User Guide for more information.
Fund – Responsibility Center settings should be reviewed for those funds used in construction that will not ultimately own the asset. Refer to the "Fund" section in the Chart of Accounts User Guide for more information.
Object – What objects are eligible or not. Refer to the "Object" section in the Chart of Accounts User Guide for more information.
Activity – What activities are eligible or not.
Setup is performed on the following reference pages for each project, where details on each are found in the Reference Pages section of this Cost Accounting User Guide: