Using a Capital Project

A capital project is an internal project that is capitalized on the balance sheet as a fixed asset after the completion of the project. For example, the construction of production facilities for a new product line is a capital project. In a capital project, deliverables can be booked as fixed assets. Fixed assets are capitalized with the actual project costs at the time of the element/ activity or project closure.

Note

For a capital project, you cannot create:

  • Contracts
  • Business partner
  • Invoices, Revenues
  • Interim Results
  • Extensions of other type than variations
Fixed asset link

You can also link elements or activities to asset extensions at the time of creating a capital project. This allows to capitalize multiple assets for a project.

On a capital project the use of fixed assets on an element or activity is optional but while closing the project, there must be a fixed asset linked to the project. So you must link an asset to the project.

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