Capitalization Journals

LN identifies data for journal creation each time you capitalize an asset. Capitalization journals debit the asset account and credit the capital accumulation account. For example, a company has an asset record for a parking garage project that cost $850,000. When the capital staff accountant capitalizes the asset, LN records the cost of the asset in preparation for creating a journal entry.

The accounts used to create the capitalization journal are stored in an integration scheme or transaction schedule. When journals are created for capitalization, LN performs validation on the accounts and periods affected to ensure the entry is correct. A journal will not be created if the Suppress Journal Entries check box is selected.