How GL postings for capitalization are determined
GL codes provide a shorthand way to identify General Ledger posting companies, accounting units, accounts, and subaccounts. When you maintain information for a GL code, the information is automatically updated for all activities where the GL code is used.
When you define asset information, you can assign GL codes that identify Work In Process and Asset Clearing accounts. GL codes are used to create General Ledger transactions during the capitalization process. A GL code for Asset Clearing is required to create transactions that result from the transfer of activity information and costs to Asset Management. A GL code for Work in Process (WIP) is optional.