accounting transaction for capitalized inventory items

[colin]

Hello,

What will be the correct accounting entry for inventory issuances to be capitalized.

For the time beeing this is the way how I record it

Cr - Inventory
Dr - CWIP


but should it go via p/l?

like this

Cr - Inventory
Dr - Expense
Cr - Expense
Dr - CWIP


Thank you
Colin

 

[kirby]

You record it correctly now.
The second entry records the inventory as expense when it is not expense. Then reverses that. So that is both wrong and inefficient.