MSAMM
Back to course

Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 7 · Project Types

Capitalization options

Lesson 71 of 198 · 13 min

On a capital type, open the capitalization options. Set the asset cost allocation method, the cost type and grouping behaviour, and whether costs are capitalizable by default. Show how the option affects a task's capitalizable flag, and the connection to Assets — forward-referencing Module 13. CAPITALIZATION IS WHERE PPM MEETS FIXED ASSET ACCOUNTING. The controller AND the fixed asset accountant both have a stake. Get both in the design conversation — they are usually different people and rarely in the same meeting. Not every cost on a capital project is capitalizable. The type sets the default; tasks can override. Failure case five is somebody who assumed the type settled it. Asset cost allocation determines how pooled costs spread across assets. It is an accounting policy decision, not a configuration preference.

The full lesson is part of the course

The video, the complete written lesson and the module quiz are included in Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue, with a certificate on completion and a fourteen-day refund window.

See the course and enrol9 free lessons

Get the free lessons by email

We will email you a link to every free lesson in this course. No account needed, and one message only.

In this module: Module 7 · Project Types

  1. 1What a project type governs
  2. 2Project type classes
  3. 3Designing the type listFree preview
  4. 4Creating a project type
  5. 5Burdening options
  6. 6Capitalization options
  7. 7Classifications
  8. 8Expenditure type class controls
  9. 9Billing and other options
  10. 10Proving the type works
  11. 11What breaks
  12. 12Lab: five behavioural patterns and a stakeholder to answer