Skip to main content
FixedAsset Pro
← All help articles

Depreciation and accounting

Capitalisation and capital work-in-progress (CWIP)

Last updated Oct 29, 2026

Where to find it

  • Web edition: the Transactions menu has Purchase Requests, Purchase Orders, Goods Receipt, Inspections, Vendor Invoices, CapEx, CWIP and Capitalization.
  • Desktop edition: Transactions › Acquisition, Capitalization, CapEx Projects and CWIP Register.

Capitalise received items

On the desktop, Transactions › Capitalization › New Capitalization has six steps:

  1. Source. Capitalise from an acquisition (PO / GRN / invoice), a CWIP project or draft assets, and click Load lines.
  2. Assets & Units. Name the assets, split a quantity into separate units if each needs its own record, and enter serial numbers.
  3. Financial. Check cost, taxes, freight, installation, residual value, life, method and rate. Enter the capitalisation date and the put-to-use date.
  4. Location & Custodian. Branch, location, department and custodian.
  5. Tags. Generate tags now, or later in the labels screen.
  6. Review & Create. Depending on your approval rules, the assets are created at once or sent for approval.

On the web, open Transactions › Capitalization, or start from Add Asset with the source From procurement to use a received purchase line; the PO and GRN links are kept. Accounting entries are never posted silently: you see a summary first.

CWIP projects

Use CWIP for assets that are being built or installed and are not yet ready for use. CWIP is not depreciated.

  1. Create a project with its name, category, branch, location, start date and budget. Choose the asset class (tangible CWIP or intangible under development) and how common costs are shared.
  2. Record spending as entries: vendor invoice, material, installation, labour, professional fees, trial run, borrowing cost, income credit or non-capitalisable.
  3. Use split, write-off and allocation as needed. Ageing buckets (under 1 year, 1-2, 2-3, over 3 years) feed the Schedule III CWIP ageing report.
  4. When the asset is ready for use, capitalise it. Depreciation starts from the put-to-use date.

CapEx budgets and requests

CapEx tracks budgets per budget head and department, and requests with their type, justification and lines. An approved request becomes a project that follows the chain from request to approval, budget, purchase, CWIP, installation and capitalisation, with budget, approved, spent and variance.

Agree with your auditor when borrowing costs may be capitalised from CWIP and how trial-run income is treated.

Related