WIP Fixed asset capitalization

Hi,

I have scenario wherein I need to purchase fixed asset through Purchase order, place it in WIP account and capitalize it at a later point of time. The journal entries should be something like:

WIP account Dr

Vendor account Cr

Once, the asset is capitalized:

Fixed asset account Dr

WIP account CR

Please let me know how I can achieve this and what kind of posting profile setups I need to do.

Thank you.

Sandeep

a) You need to create the New item group called - Asset and place the check mark Asset group.

b) Create the new item with the type Service , then attach the Item Group of Asset

c) Item Posting for the Group - Asset , in the purchase order tab, ‘Fixed asset receipt’ ledger should be defined as ‘FA WIP’ ledger account

d) Also for this asset group in inventory tab, ‘Fixed asset issue’ ledger should be defined as ‘FA WIP’.

e) Now post the purchase order with invoice

f) When you need to transfer that from WIP FA to FA then use the Inventory to FA journal in FA module.

Hi Ially,

Thank you for the step by step procedure.

I’ll try these and get back to you.

Regards,

Sandeep

Hi Ially,

I tried the steps given by you and it seems to work fine. Thank you once again :slight_smile:

Regards,

Sandeep