Fixed Assets Help Center
User Guide

25. Capitalize a CIP Asset

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Capitalize a CIP Asset

The CIP Asset that needs to be capitalized should have a related CIP and CIP Items associated with it. A CIP Asset, once capitalized, cannot be capitalized again and can only be associated with one Asset class.

Steps to Capitalize a CIP Asset:

  1. Navigate to the CIP Asset ready to be capitalized. Click on the Split button

  2. Confirm the total amount for the CIP Asset is equal to the summation of the amount for all CIP Items assigned to it. These confirm that the CIP Items have the status of Assigned.

  3. Click on the Capitalize button, which will automatically create a Fixed Asset with the Amount mentioned in the CIP Asset. The name of the Fixed Asset will be the same as the CIP Asset.

  4. You will be prompted to add the Asset Class, Asset Name, Date placed in service, Asset GL Posting Date, Department, and Location (these are the mandatory fields to create an Asset).

  5. After entering the mandatory fields, the capitalization of the Asset will be completed, and the success message “Action Capitalize has been performed” will be displayed. The workflow status of the CIP Items will be changed to “Capitalized,” and the journal entry will debit the FA GL Account and credit the CIP GL Account.  The link to the JE will be attached to the CIP Asset.

  6. The new Asset Record will have a “To Review” status with the Asset Name as specified in the “Asset Name” field. Next, enter the desired values for all Intacct Dimensions and custom fields, and click “Generate Financial Depreciation.”

Workflow Status Summary

The following section provides an overview of the workflow status for CIP Item or CIP Asset at a glance.

  1. Pending: The CIP Item will always have an initial status of “Pending.” This status can be changed to “To be expensed” or “Split.”

  2. To Be Expensed: This status will be seen on the CIP Item after the “Mark as to be Expensed” button is clicked. This status can be changed to “Expensed.”

  3. Assigned: Once a CIP Item is associated with a CIP Asset, its status is changed to “Assigned.”

  4. Expensed: After a CIP Item is expensed, i.e., after the button “Write to Expense” is clicked, the status will be changed to “Expensed.”

  5. Capitalized: After the “Capitalize” button is clicked on a CIP Asset; the CIP Items will have the status as “Capitalized.”

  6. In Progress: When a CIP Asset is initially created, it will have the status set to “In Progress.”