Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 13 · Project Costing: Capture and Processing
Capitalization and asset creation
Lesson 138 of 198 · 15 min
On a capital project from Module 7, review the capitalizable settings. Set one task as capitalizable and another as non-capitalizable, record costs against both, create an asset and define its attributes, assign costs to the asset — showing the allocation method from Module 7 — place the asset in service, run the process transferring the asset to Assets, and show the resulting asset record and the accounting. NOT EVERY COST ON A CAPITAL PROJECT IS CAPITALIZABLE. Feasibility studies, some overheads and post-implementation costs frequently are not. The task-level flag is how you separate them — and the rules come from Finance, not from you. PLACING IN SERVICE IS THE TRIGGER. Before it, costs sit as construction in progress. After it, the asset depreciates. The timing is an accounting decision with a P&L consequence — so it is somebody else's call, made on a date they choose. If you took the…
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.