The new system provides the ability to define project costs to be capitalized and update Fixed Assets with the capitalized costs.
In This Article:
- How asset capitalization is handled in the new system
- Steps to capitalize costs
- Track capitalized costs in Asset Management
Asset Capitalization is independent of project structure, although certain project structures are easier to capitalize than others. The process can occur whenever the asset is ready to be capitalized, and even after an asset has been capitalized, additional costs can be sent afterward. These costs are classified as adjustments on the asset.
The following Project Capitalization process details how to capitalize project–related expenses to assets:
- Relate the Asset: Identify the project and activities that make up the capitalized costs, then relate the asset to the project and activities in Project Costing.
- Assign Transactions to Asset: Create an asset profile, attach costs to the asset, and run the capitalization process
- Run/Send transactions: Update Asset Management with Project Costing transactions, and then manage completed transactions in the Asset Management module.
There are two ways to Capitalize Assets:
- Express Capitalization –Automatic asset capitalization by configuring express asset filter criteria
- Manual Capitalization –User identifies project transactions that will be capitalized
All costs to be capitalized with an asset, including interest and overhead costs, need to be collected in Project Costing. Once the asset is ready for capitalization, all capitalized costs will be pushed into Asset Management.