Create Capital WIP – A summary of the activity
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This activity allows you to create a Work In Progress Asset (CWIP). The CWIP asset can be later capitalized in the “Create Complex Asset” activity of this business component.
The assets whose work is in progress should also be accounted. For example, consider a building construction process. During construction, the expenses incurred towards raw material and labor are either booked towards WIP account or to the expenses account. As these expenses are not revenue in nature, it has to be accounted as WIP asset before the closure of the books. Only on completion of the asset by effectively putting into use, these WIP assets are converted into fixed assets, so that the companies start accounting towards depreciation.
You can create the capital WIP asset based on some documents or without any document reference. The work in progress asset can be capitalized, line item wise in the selected document. The assets can also be capitalized partially. This activity allows you to provide a unique number for the capital work order. You can also specify the capital work in progress information.
The system updates the status of the capital WIP to “Fresh”. The system generates a unique document number on creation of the capital WIP asset, based on the numbering type specified.
Getting familiar with the pages inside
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Go to page… |
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Select Document |
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Select Document Details |
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Create Capital WIP |
What you can do in this activity
Create capital WIP based on document
Capital WIP without any document reference
Create capital WIP based on document
The capital WIP can be created with the document reference.
Go to “Select Document” page.
Specify the search criteria and retrieve the document detaills.
Enter the capital WIP cost to be capitalized and create the capital WIP asset.
The system updates the status of the capital WIP to “Fresh”.
Capital WIP without any document reference
The capital WIP can also be created without any document reference.
Go to “Create Capital WIP” page.
Provide a unique number and a description to the capital work order and create.
If the capital work order is not based on any document reference, then you can capture the document details.
Go to “Create Capital WIP” page.
Provide a unique number and a description to the capital work order.
Provide the document details of the capital work order and create the capital WIP.
The system updates the status of the capital WIP to “Fresh”.