Capitalization Workflow

Capitalization is a separate action from create/edit so teams can separate operational registration from accounting recognition.

Open the asset record and use Capitalize Asset when the setup is complete.

Prerequisites: source evidence is attached or traceable, the available-for-use decision is approved, category defaults have been reviewed, and the user has capitalization permission.

Required Capitalization Fields

Before capitalization, confirm:

• Cost is correct.
• Capitalization date is correct.
• Useful life is set.
• Category is assigned.
• Credit account is selected when Accounting is enabled.

Accounting Integration

When Accounting is enabled and mappings are present, capitalization posts:

• Debit fixed asset or intangible asset account.
• Credit the selected funding/source account.

After capitalization, cost, category, useful life, residual value, dates, currency, and account mappings are locked on the normal edit form. Use controlled cost/estimate adjustment, impairment, or disposal actions so the financial history remains auditable.

Approved Accounting bill items and received Procurement items can create idempotent asset drafts. A bill-linked asset reuses the posted bill journal only when the bill line was coded to the selected category asset account; otherwise capitalization asks finance to correct the source coding.

The asset stores the capitalization transaction reference after successful posting. If Accounting is disabled, the asset can still be capitalized operationally without a journal.

Expected result: the asset becomes active, controlled financial fields lock, an immutable activity entry is recorded, and the capitalization transaction is linked when Accounting posts a journal.

A timeout is not a reason to click repeatedly. Reopen the asset and check its status and transaction reference first; capitalization is designed to be idempotent.

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