Project Capitalization

Hi, 

A common misunderstanding regarding project capitalization is the IFS definition of cost. 

For many people inventory purchased for a project yet still in stock is often seen as a project cost. 

This is different from how IFS manages that posting.    Assume the inventory purchase hit an asset account. From an IFS perspective, an Asset account is not cost and will not be capitalized. Project capitalization will leave that posting as is.   Now assume that same entry hit a cost account (defined by the account type), that cost (depending on project type / capitalization setting) will move that cost from P&L to balance sheet (assuming posting control is set correctly).    

The transaction setting will move that cost at GL update. Periodical will move the cost only when the project capitalization process is run (usually month end). See the voucher rows after GL update. 

In your example, see the type of account used, and the type of project Cap or no cap settings).   

Best regards, 

Thomas