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.
• The source panel is reconciled, or a Funding / offset account is selected for a manual asset.

Accounting Integration

When an asset comes from an approved, posted Accounting bill, capitalization reuses that bill transaction. It does not ask for an offset account and creates no additional acquisition journal. The combined source allocation must equal the debit posted to the category asset account.

Procurement receipt drafts show Awaiting Accounting handoff while Accounting is enabled. Capitalization remains blocked until the supplier invoice is handed off and posted, at which point the drafts inherit the Accounting bill source.

For a genuinely manual asset with Accounting enabled, capitalization posts:

• Debit fixed asset or intangible asset account.
• Credit the selected Funding / offset account.

The Funding / offset account is selected inside the capitalization action, not on the general create/edit form. Cash, bank, approved clearing, loan, and equity funding accounts may be used; the asset account itself and Accounting control accounts are rejected.

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. A missing, unposted, or reversed source transaction never falls back to manual journal posting.

For whole-number tangible quantities, SikaBooks creates one draft per physical unit. A line for 2 × GHS 200,000 therefore produces two separately numbered and QR-coded assets costing GHS 200,000 each, while the Accounting journal remains one GHS 400,000 debit. Open the source allocation from the bill to confirm the expected unit count, combined register cost, posted asset debit, and zero variance before capitalization. Fractional quantities and intangible purchases remain pooled, and sources above 500 units must use the Asset import workflow.

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.