How to transfer CWIP costs to Fixed Assets?

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Posted on by CanadaNAVuser

Hi, like say we're building a new building or doing renovation. There're costs/bills paid as WIP costs before project completion. I created Asset Cards (many) to record the costs under WIP category. When the project finished and asset put in use, is there a transfer function in NAV to transfer the costs to Fixed Assets and start depreciation? Is there existing function for this without paying someone to program it? Thanks!

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CanadaNAVuser 5 on at

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RE: How to transfer CWIP costs to Fixed Assets?

Hi Steve, The method you suggested makes sense and we tried before. The only issue was when we run the NBV "01" report at month end, the assets cards disappeared from WIP and showed up under FA category, after we changed the WIP card into actual FA card and added depreciation life. We use FA subledger/reports and track monthly FA (incl. WIP) changes to tie to ending balance. I think I'll try this method again.

Thanks all for the input!

Florence

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RE: How to transfer CWIP costs to Fixed Assets?

Hello,

Many have asked this question and Construction in Progress is maintained manually in Fixed Assets. What my customers/clients do, per training, is to record the each Invoice (CIP) against a Fixed Asset Card with NO starting Depreciation Date. They create a Posting Group called CIP so the Debit is to CIP and offset to AP when the Purchase Invoice is posted. When the CIP is completed, they do the following:

1. Change the Posting Group on the Asset Card to the actual Asset Posting Group

2. Record a General Journal moving the actual Acquisition Cost of the Fixed Asset from CIP to Actual Asset GL Account (I.e. from CIP to Building or Leasehold Improvement).

Then the Asset Card has a Starting Depreciation Date and you can begin Depreciating.

Hope this helps.

Thanks,

Steve

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Dirk on at

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RE: How to transfer CWIP costs to Fixed Assets?

Hello,

I would suggest you use the "Reclassifiation" functionality.

You would need to enter a line per asset and define to which new asset you want to reclassify and you probably would want to specify the percentage of reclassification of 100 % of the Acq. Costs.

Then you hit the "Reclassify" action button and find new lines created in the FA G/L Journal (if G/L Integration is used) or in the FA Journal (if integration with G/L is not used).

Here you need to hit the "Post" action.

I hope this helps

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Marco Mels on at

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RE: How to transfer CWIP costs to Fixed Assets?

Hello,

I asked one of our team members here internally to take a look if he is able to do, otherwise I will ask our US team to take a look at this questions.

Thanks.

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