Capitalization Options for Project Types

You can assign assets to a project by associating it with a project type that's enabled for capitalization. Enable capitalization for a project type using the Manage Project Types task.

The following graphic illustrates capitalization options for project types.

Specify the following information when setting up capitalization options for project types.

• Construction in Progress (CIP) Options

• Supplier Invoices Export Options

• Capitalized Interest Options

Construction in Progress Options

You specify the following Construction in Progress options when setting up capitalization options for project types.

Indicate whether to capitalize costs at the burdened or raw cost amount for projects associated with this project type.

Enable this option to require a complete asset definition in Oracle Fusion Project Portfolio Management before sending costs to Oracle Fusion Assets. If you select this option, you don't need to enter information for the imported asset lines in Oracle Fusion Assets. The Transfer Assets to Oracle Fusion Assets process places asset lines with complete definitions directly into the post queue in Oracle Fusion Assets.

Specify one of the following methods to summarize asset lines.

• All, which is the highest level of summarization

• Expenditure Category

• Expenditure Category Nonlabor Resource

• Expenditure Type

• Expenditure Type Nonlabor Resource

• Expenditure Organization

• Expenditure Item

Select one of the following predefined allocation methods to automatically distribute indirect and common costs across multiple assets, or select no allocation method.

• Actual Units

• Current Cost

• Estimated Cost

• Standard Unit Cost

• Spread Evenly

Specify a capital event processing method to control how assets and costs are grouped over time. You can select either periodic or manual events, or no events.

Construction in Progress Capitalization Options when Automatic Creation of Project Assets and Asset Lines is Enabled

Note: This feature will be available starting with the 25D release.

Capitalization options defined under the Construction in Progress section for a project or project type type will continue to be applicable when generating asset lines for automatically created project assets. A few changes apply when processing asset lines for automatically created project assets as follows.

• Asset Cost Allocation Method:
  • For manually created project assets: There is no change in functionality. See the Construction in Progress section above for details.
  • For automatically created project assets:
    • The asset cost allocation method specified for a project will be used to allocate only non-asset associated costs when the Allocate only associated costs to automatically created assets option is disabled.
    • Asset associated costs will always be allocated directly to automatically created project assets, and the cost allocation method specified is not applicable for costs of this nature. The only exception is when an allocation method of None is chosen.
  • An asset cost allocation method of None will result in neither asset-associated nor non-asset-associated costs being allocated to automatically created assets. Asset lines will be generated based on grouping and other capitalization options defined, but will be in an unassigned state. You need to manually review and assign such asset lines to the required assets.
• Asset Line Grouping Method:
  • In addition to the grouping method selected, additional asset associated identifiers are used when generating asset lines for automatically created project assets.

Supplier Invoices Options

You specify the following Supplier Invoices options when setting up capitalization options for project types.

You can use the grouping options to do one of the following:

• Enable this option to consolidate the expenditure items on a supplier invoice into one asset line according to the asset line grouping method.

• Disable this option to send the lines to Oracle Assets based on the supplier invoice export option

If you choose not to group supplier invoices, then select one of the following supplier invoice export options.

• As New Additions: Sends each expenditure item on a supplier invoice line to Oracle Fusion Assets as a separate addition line with a status of New.

• As Merged Additions: Sends each supplier invoice line to Oracle Fusion Assets as a separate addition line with the status of Merged.

Previously capitalized assets are transferred as new additions to Oracle Fusion Assets.

• If the asset was assigned an asset number in Project Costing, then you must remove or change the asset number in Oracle Fusion Assets before you can post the new addition.

• After the addition lines are sent to Oracle Fusion Assets, you can split, merge, or split the lines manually in Oracle Fusion Assets.

Capitalized Interest Options

Use this field to specify a default interest rate schedule for capitalized interest.

You can select the Allow Override option to allow an override of the default capitalized interest rate schedule for individual projects.

Automated Processing Options for Project Assets

• Select Create project assets automatically to enable automatic creation of project assets for:

  • Capital project-related purchase receipts of items designated for fixed asset creation at receipt.
  • Supplier invoice costs for capital projects, where invoice distributions are tracked as assets.
• Select Allocate only associated costs for automatically created assets to allocate only asset associated costs to automatically created assets. See Allocate only associated costs for automatically created assets for more information.