USA Fixed Asset Capitalization

[JR.]

What is the general method for creating purchase orders for CIP projects; would the distribution line (GL) of the PO consist of an expense account then moved to the balance sheet via JE, or should the purchase order be mapped directly to the CIP account to avoid the need of a JE? I am using Oracle R12 by the way and I was researching the different ways the project accounting is utilized, but in regards to the PO creation I couldnt answer my question.

 

[bklynboy]

We record against the expense all PO's and if capitalized or an Asset Under Construction (CIP). Our system then generates a offsetting expense that creates the Asset (its predefined in the system). Its all automated in the system (we use SAP) and I would think could also be automated using Oracle as this is fairly standard. Doesn't Oracle have an Asset Accounting module that would do this for you?

 

[JR.]

I found out that some subledgers were interfaced with the asset and some weren’t. Basically, we didn’t utilize the full functionality of the system. Thanks for the feedback