What is the meaning of Balance Sheet Capital Asset Accont? What and when do you use it?

[joshlabtech]

Hi, I'm trying to set up a ERP system and i seems to need to set up a GL account that utilize Balance Sheet Capital Asset Account. What is it used for and when do you use it?

Thank you!

 

[DrStrangeLove]

My guess is that that account is Work In Progress Costs Account, which is a balance sheet as a long-term capital asset. It's used to account for costs when a large capital asset is constructed by the firm rather than simply purchased. So if Amazon builds a processing center, the WIP Costs account would be used in that process while the processing center is being build. It will eventually be cleared out when the construction is finished and the processing center, as an asset, is recognized on the books and depreciation starts.