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Administrator Guide
Last Updated: 2023-06-23
Capitalize Project Assets

Capitalize Project Assets

  • Review transactions tagged to the capital project and assign their cost to project assets.
  • Optionally, create rules that automatically classify capital project transactions as expenses or assets, eliminating manual Work In Progress (WIP) accounting.
  • Security:
    Manage: Capital Projects
     domain in the Capital Projects functional area.
Capitalize your project assets to convert them into business assets and capitalize their associated cost. Example: You can capitalize project assets when all costs from the related project are in and you want to start depreciating the assets. To capitalize assets across multiple projects, or to capitalize project assets to create multiple business assets, access the
Capital Project Workbench
 report. Workday doesn't support asset pooling for project assets, or for business assets you create when you capitalize project transactions.
  1. Access the
    Capitalize Project Assets
     task.
  2. Select the project assets with uncapitalized cost that you want to capitalize.
    As you complete the task, consider:
    Option Description
    Capitalization Date
    You can change the
    Capitalization Date
     to a date in the past or future for any asset that you haven’t yet capitalized. You can now set these dates on the resulting business asset to any day in the past:
    • Business acquisition.
    • Placed in service.
    Example: You acquire an asset, but don't enter it into Workday until a month later. You can back date the
    Capitalization Date
    . This function enables you to have accurate acquisition and in service dates after you capitalize the project asset into a business asset.
    Project Asset Quantity
    You can adjust the quantity of the assets you want to capitalize. Workday creates new business assets based on the quantity that you enter, and divides the capitalized cost equally among them. You can't adjust the asset quantity after you capitalize project assets.
    This field is only available when you access the task from the
    Capital Project Workbench
    .
  3. For previously capitalized project assets that have new uncapitalized cost that you want to mark as a post-acquisition cost adjustment:
    1. Select the
      Post Acquisition Adjustment
       check box.
    2. Select the
      Adjustment Date
      .
      Workday divides the cost equally amongst business assets generated from the same project asset, and uses your selections to determine where on the depreciation schedule to add the post-acquisition cost adjustment. The cost is divided by the remaining periods on the asset depreciation profile and the selected date. You can enter any date during the life of the asset. When you dispose of a business asset, you can no longer make cost adjustments to any business assets that were capitalized from the same project asset.
When you submit the transaction:
  • For project assets capitalized for the first time, Workday initiates the
    Asset Registration Event
     business process.
    The
    Asset Assign Accounting Event
     step of the business process generates journal entries. These entries move costs out of your WIP accounts and to the business assets. This step displays as an inbox item for the asset accountant.
  • For recapitalized project assets, Workday initiates the
    Asset Cost Adjustment Event
     business process.
    This process:
    • Adjusts the acquisition or post-acquisition cost of the corresponding business assets.
    • Applies your decision to approve or deny a cost adjustment to all business assets generated from the same project asset.
    • Generates journal entries to move post-acquisition costs out of your WIP accounts and to the business assets.
  • Capitalize or recapitalize additional project assets.
  • Track the resulting assets.
  • Perform lifecycle events for the resulting assets.