1. Create a new Asset Type and Asset Account with name Construction in Progress. For creating asset type, please visit SuiteAnswers: 105122 - Asset Types.
2. Record expenses related to the Asset being constructed to Construction in Progress Asset Account
3. Once the Asset is completed, propose new asset for Construction in Progress Asset Type, select all transactions and Generate Asset. Please visit SuiteAnswers: 19273 - Asset Proposal and Generation for detailed process of Asset Proposal and Asset Generation.
Note:
A. In case you don’t want to run depreciation for these CIP Assets, you may set the following:
- Click Edit on your CIP Asset
- Navigate to General tab
- Set Depreciation Active: False:
B. For each Bill checked on the Manage Proposal page will be created separate Asset. In case you would like to have them linked together, you may use the FAM functionality of the Compound Assets (SA: 62835 - Build Compound Assets).
4. Once the asset is fully created, you may then perform Asset Transfer from Construction in Progress Asset Type to the correct Asset Type. For detailed Asset Transfer instruction, please visit SuiteAnswers: 27189 - Asset Transfer.
Note: All the accounting settings above are just illustrative and needs to be discussed with your inhouse accountant department.