Partly Capitalize the CIP Assets

[EMANUEL]

Hi,

Please let us know any possibility or workaround to partly capitalize the CIP Assets in R12 ?



Rgds
Emanuel

[karthikeyanp1981]

Dear Emanuel,

Irrespective of the version partially capitalising a CIP Asset is not allowed in the Asset Module. Possible workarounds are:

1) Define a separate Asset Category for the CIP Asset and do not enable depreciation for it. Keep all CIP assets in that category, so that no depreciation is computed. Upon the assets becoming capitalised, reclassify the asset from CIP Asset Category to respective Capital Asset Category.

2) Do not enter CIP Asset details in FA at all. Track the CIP Asset in the GL itself by passing manual entry (Entry no 1 below). When the CIP is getting capitalised, create a manual Capitalized Asset in FA Module directly. (Entry no 2 is created by running create accounting)
Entry 1) CIP Clearing Account Debit
AP Liability Account Credit
Entry 2) CIP Cost Account Debit
CIP Clearing Account Credit.

Not sure whether this is valid practice followed by many other consultants, i thought of these two methods only.
Request other members to comment on the loopholes on the above or most acceptable workaround.


regards
Karthikeyan

[tgs100]

Good one karthikeyan.

<b>Emanuel:</b> Before I give my views on this, I would like some of my doubts get clarified.

<b>partly capitalize the CIP Assets in R12 </b>

1. Could you explain the business reason for <b>partially capitalizing</b> CIP assets? Is it a legal requirement?
2. You want to calculate depreciation for the partially capitalized assets. Is it correct?
3. Do you capture CIP assets in FA module now? or only in GL

Cheers,
Saravanan

[EMANUEL]

Hi,


1. Could you explain the business reason for partially capitalizing CIP assets? Is it a legal requirement?
-----Yes it is business requirement to partly Capitalize the assets

2. You want to calculate depreciation for the partially capitalized assets. Is it correct?
------Yes we require to calculate depreciation for the partially capitalized assets

3. Do you capture CIP assets in FA module now? or only in GL
------------Yes

Rgds
Emanuel

[tgs100]

I go with Karthikeyan. You can't partly capitalize the CIP assets in FA module. You may have to pass the JVs in GL directly till such time you fully capitalize the asset in FA.

Cheers,
Saravanan