Overview
According to the accounting rules, costs incurred from the CAPEX project related to improvements of the existing asset must be capitalized as asset cost.
To capitalize CAPEX as additions to the asset cost, the company needs to provide all the necessary information.
The costs incurred from the CAPEX project will be recalculated to the actual cost and capitalized as the asset cost after performing the month-end closing procedure.
Recognize fixed asset cost addition flowchart
Paths
| Path | Assets management → Fixed assets → Fixed assets documents |
|---|---|
| In-app link EN code |
e1cib/command/DataProcessor.FADocumentLog2_4.Command.FixedAssetsDocuments
|
| In-app link RU code |
e1cib/command/Обработка.ЖурналДокументовОС2_4.Команда.ДокументыПоОС
|
How to create asset cost additions
1. Go to Assets management and then click Fixed assets documents under Fixed assets.
2. Create a new Fixed assets — Cost additions document.
3. Click the Main tab.
4. Choose a Company.
5. Choose a Business unit (that is, a cost center of the asset to capitalize).
6. Select the Assets under construction check box and then choose a required asset.
How to specify related assets
1. In the Fixed assets — Cost additions document, click the Fixed assets tab.
2. Add a new line and choose an Asset to fill assets related to the CAPEX project.
How to fill preliminary asset cost additions
1. In the Fixed assets — Cost additions document, click the Fixed assets tab.
2. Select all the lines.
3. Click Fill and select Accumulated capital expenditures to allocate all the costs accumulated as of the date to the CAPEX project.
4. Change the allocation manually if necessary.