Example 1

This example shows the General Ledger postings that occur as project costs are collected and capitalized when a GL code for WIP is defined in asset information associated with the activity:

Project costs are incurred from a vendor and posted when Invoice Distribution Closing (AP175) is run. The user is responsible for entering the correct WIP account in the invoice.
Activities are transferred to Asset Management using Asset Management Interface (AC160).

Transferred records are processed in Asset Management using Processing Release (AM170).


Account description	Debit	Credit
Work in Process	⁽¹⁾50,000	⁽²⁾50,000
Buildings	⁽³⁾50,000
Asset Clearing	⁽²⁾50,000	⁽³⁾50,000
Accounts Payable		⁽¹⁾50,000