AP Invoices Passed Through To Mass Additions

We are currently implementing Oracle R12 from 11i.  Because we are a governmental entity, AP invoices must be initially distributed to an expenditure account in the AP module; however, this appears to be causing a problem with the mass additions process.  Charging the invoice to an expenditure account makes the asset type in mass additions appear as Expensed as opposed to Capitalized or CIP.  We are not able to changed the Expensed type to properly process the asset.  Is there a setup item we are missing or how are other governments processing invoices and assets using R12?