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Hi Everyone
I'm interested in hearing how people are handling the capitalisation of WIP costs, basically how are you creating fixed assets from expenditure that is recorded to a WIP GL Account?
We have a client that wants to be able to easily monitor their GL Account that is being used to capture all expenditure that will be capitalized at a later date. They also want to easily be able to establish what has and what hasn't been capitalized.
We're thinking we can use a Dimension and using it when processing the vendor invoice and again when doing the fixed asset acquisition.
I was thinking that maybe we could setup an additional depreciation book (i.e. call it CAPWIP) and a new Posting Group to record the acquisition costs to a WIP GL Account. We wouldn't run depreciation against this book. When time comes to capitalize the costs, we would replaced a Fixed Asset Reclassification Journal to transfer all or some of the acquisition costs to a new asset which has the Company Depreciation Book attached, but it seems that you cannot reclassify across different depreciation books.
Maybe I could use the same depreciation book, create a separate FA Class and Subclass and just set the depreciation to Manual so that depreciation isn't calculated?
I'm keen to hear what others are doing.
Thanks in advance for any advice, tips or suggestions.
Manish.
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