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How to track costs on a project for the eventual capitalization to fixed assets

  • May 21, 2025
  • 3 replies
  • 122 views

What is the best way to track items issued out of inventory to an internal project for accumulation and capitalization to fixed assets? Here is the scenario I tried to do but received an error when creating a fixed asset.

  1. Added the fixed asset clearing account to an asset type account group
  2. Created an issue reason code to the fixed asset accrual account
  3. Created a PO tagged to a project and task
  4. Received the item into inventory (we use items from inventory for external and internal projects so steps 3 and 4 may not always occur)
  5. Created in inventory issue transaction to the project
  6. Capitalize the project costs to a fixed asset

When creating the purchasing transaction in fixed assets, I get the following error:

Error: Inserting 'GL Transaction' record raised at least one error. Please review the errors. Project is Required but was not specified. Account '14900' used in the GL Transaction is mapped to Project Account Group.

The problem is I do not see a way to enter the project information in fixed assets. Is there a different transaction flow I should be following?

Best answer by frankfiorentino51

If I do that the I cannot track the asset pending capitalization on the project. Even if I remove the account group after adding the asset to the project, I am unable to capitalize. It seems as though the functionality to turn a project into a fixed asset does not work.

I found work around that involves recording a project transaction to any account included in an account group but this adds more work for users.

3 replies

ricoybanez
Jr Varsity III
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  • Jr Varsity III
  • May 26, 2025

@frankfiorentino51 

Open your Chart of account and search for that specific Account, check the Account Group Column further right. Do not put Account Group detail on that column and after which try your Entry again.

 

 


If I do that the I cannot track the asset pending capitalization on the project. Even if I remove the account group after adding the asset to the project, I am unable to capitalize. It seems as though the functionality to turn a project into a fixed asset does not work.

I found work around that involves recording a project transaction to any account included in an account group but this adds more work for users.


Forum|alt.badge.img

similar to another thread with the same problem. seems we have a circular eference, we cannot charge CIP to a project without an account group, then we cannot add the CIP to create a fixed asset because CIP is in an account group.

 

what is the purpose of the under construction checkbox?