Example 2

This example shows the General Ledger postings that occur as project costs are collected and capitalized when a WIP code is not defined in asset information associated with the activity:

Project costs are incurred from a vendor and posted when Invoice Distribution Closing (AP175) is run.
Activities are transferred to Asset Management using Asset Management Interface (AC160). The accounts from the Accounts Payable invoice are credited because a GL Code for WIP is not defined.

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


Account description	Debit	Credit
Project material costs	⁽¹⁾20,000	⁽²⁾20,000
Project labor costs	⁽¹⁾30,000	⁽²⁾30,000
Buildings	⁽³⁾50,000
Asset Clearing	⁽²⁾50,000	⁽³⁾50,000
Accounts Payable		⁽¹⁾50,000