Capitalize a CIP asset—Fixed Assets Management

When you finish adding costs to a Construction in Progress (CIP) asset, capitalize it to complete the construction phase. Capitalization transfers the accumulated costs from the CIP GL account to the Asset GL account using the Fixed Assets Management journal, changes the asset’s state to Ready for review, and prevents additional costs from being added. A link to the capitalization journal entry appears on the asset’s CIP tab.

At this time, you cannot revert a capitalization.

Before you begin

  • Verify that the asset has a CIP GL account assigned.

Capitalize a CIP asset

Subscription Fixed Assets Management
Regional availability

All regions

User type Business
Permissions

Fixed Assets Management

  • Asset: List, View, Edit
Configuration

  • Construction in Progress (CIP) must be enabled in Fixed Assets Management Configuration.

  • A Fixed Assets Management journal must be assigned in Fixed Assets Management Configuration to record CIP asset capitalizations.
  1. Go to Fixed Assets Management > All > Assets.

  2. Find the asset that you want to capitalize.

    The asset must be in the Construction in Progress state.

  3. Select the asset's name to view it.

  4. Review the costs on the CIP tab for accuracy and completeness.

  5. Select Capitalize in the upper‑right corner of the page.

  6. Select Capitalize to confirm.

    A link to the capitalization journal entry appears on the asset’s CIP tab.

Next step: Place the asset in service.