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Construction-In-Process (CIP) Assets

A construction-in-process (CIP) asset is an asset you construct over a period of time. Create and maintain your CIP assets as you spend money for raw materials and labor to construct them. Since a CIP asset is not yet in use, it does not depreciate and is only in the corporate book. When you finish building the CIP asset, you can place it in service and begin depreciating it.

You can track CIP assets in Oracle Assets, or you can track detailed information about your CIP assets in Oracle Projects. If you use Oracle Projects to track CIP assets, you do not need to track them in Oracle Assets.

See: Create Mass Additions from Capital Assets in Oracle Projects.

Use the Asset Key to Track CIP Projects

The asset key is a set of key identifying information, such as project name and project number, that you define for each CIP asset. Use the asset key to group and track your CIP assets with common key words so you can find them easily for inquiry or transactions.

Acquire and Build CIP Assets

Create CIP assets using Mass Additions or manual additions.

Oracle Assets identifies invoices with distributions to CIP clearing accounts in Oracle Payables, and creates mass additions from them. You can create new CIP assets from your mass additions, or add them to existing assets. You can also add non-invoiced expenses, such as labor cost, to your CIP assets. You can perform transfers or adjustments on your CIP assets if necessary.

Place Finished Assets in Service

You capitalize CIP assets when you are ready to place them in service. You can capitalize or reverse capitalize a single asset or a group of assets.

When you capitalize an asset, Oracle Assets changes the asset type from CIP to Capitalized, changes the date placed in service to the date you enter, sets the cost to the sum of all source lines for the asset, and re-defaults the depreciation rules from the asset category. Oracle Assets creates an Addition transaction for an asset you added in a prior period or changes the CIP Addition transaction to an Addition for an asset you added in the current period.

When you reverse a capitalization, Oracle Assets changes the asset type from Capitalized back to CIP and leaves the date placed in service unchanged. It changes the Addition transaction to an Addition/Void for an asset you added in a prior period or changes the Addition transaction to a CIP Addition for an asset you added in the current period. It also creates a CIP Reverse transaction for assets you capitalized in a prior period.

See Also

Adding an Asset Automatically from an External Source (Mass Additions)

Mass Additions

CIP Transactions

CIP Reports

Entering Suppliers

Viewing Assets

Assignments

Source Lines

Parent Asset Report

Parent Asset Transactions Report

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