Workflow for CIP assets—Fixed Assets Management

Construction in Progress (CIP) assets allow you to track and manage costs for assets that are still being built or assembled.

This workflow outlines the key steps for managing CIP assets in Fixed Assets Management.

1. Turn on CIP functionality.

   Enable CIP in Fixed Assets Management Configuration.

2. Assign CIP GL accounts to asset classifications.

   The CIP GL account is used to record costs while an asset is under construction. You can use the same CIP GL account across multiple classifications and assets.

3. Create CIP assets.

   You can create a CIP asset manually, create one automatically from AP supplier invoices or purchasing transactions, or import CIP assets in bulk.

4. Optionally, connect CIP assets with projects.

   If you're subscribed to Projects, you can associate CIP assets with projects to save time when adding costs.

5. Add costs to CIP assets.

   Add costs to a CIP asset from AP supplier invoice or purchasing transaction lines.

6. Capitalize CIP assets.

   Capitalization transfers accumulated costs from the CIP GL account to the Asset GL account, changes the asset’s status to Ready for review, and prevents additional costs from being added.

7. Place assets in service.

   Placing the asset in service starts depreciation.