¶ Purpose
The CWIP (Capital Work In Progress) screen enables the conversion of an inactive asset into its operational state.
¶ Prerequisites
The following transactions must be completed.
- The user access rights transaction must be completed.
- The Asset Type, Asset Master (Capital and Depreciation accounts), CWIP accounts, Asset Master Cost Distribution and GRN transactions must be completed.
¶ CWIP (Capital Work In Progress)
The Capital Work in Progress screen allows the user to transfer the CWIP account to a specific fixed asset account.
Navigation: Main – Menu ⇢ Transactions ⇢ Finance ⇢ Finance Entries ⇢ Finance ⇢ Select Financial Year ⇢ Show List ⇢ Assets ⇢ Capital Work In Progress
- The user can search for a particular transaction based on the Transaction From (Date).
- The Capital Work In Progress displays details such as the Trans No. and Trans Date.
- The user must select the appropriate Profit Centre from the dropdown list.
- The user must select the appropriate Transfer From (CWIP Ledger) from the dropdown list.
- The user must select the appropriate Transfer To (fixed asset ledger) from the dropdown list.
- The user can enter Description details if required.
- Once the user selects the appropriate Transfer From (CWIP Ledger), the transaction details will appear as shown below.
- The Expense Details section displays transaction details such as the Transaction Number, Transaction Date, Transaction Description, Amount and Dr/Cr.
- The user must select the checkbox for the transaction.
- Once the user selects the appropriate transaction, the Amount (Cr) will appear automatically as shown below.
- Click Save, the reference number will appear on the left panel of the screen.
- The Audited checkbox is automatically selected once the authorised person audits the transaction.
- The Edited checkbox is automatically selected after any modifications are made to the existing transaction details.
¶ Add Cost Distribution Details
The Cost Distribution link allows the user to add expenses for assets after saving the CWIP transaction.
- The user can search for existing transactions based on Transaction From (Date).
- The user must select the appropriate transaction number from the left panel of the screen.
- Click the Cost Distribution link, the following screen will appear.
- The Cost Distribution screen displays transaction details such as the SI No., Tr. No., Tr. Date, A/C Name, Description, Dr, Cr, Cost and also allows the user to add cost distribution details.
- The user must add cost distribution to the appropriate Asset Capital Account.
- Click Add link, the following screen appears.
- The user must select the appropriate Type from the dropdown list.
- The user must select the appropriate Cost Distribution from the dropdown list.
- The user can search for a particular Cost Distribution (Code and Name) using the F3 key.
- The user must enter the Amount.
- Click Save.
- Click Excel – DataGrid Interface, to add Cost Distribution details using Excel, and the following screen will appear.
- The user must click the Generate Template, to download the Excel template.
- The name of the Excel file must be the Cost Distribution Template.
- The user must enter details, such as the Start Row and End Row.
- The user must enter the corresponding asset details into Excel.
- Click Attachment (symbol) to select the appropriate Excel file.
- Click Import to Grid, to upload Excel.
- If the Debit (Dr) Amount and Credit (Cr) Amount are matched, the system automatically fills the grids. Click Save.
Note: If any error occurs, the system displays the error message in the newly generated Excel sheet.
¶ Approve Transaction Details
The Approve link allows the user to approve the added or existing transaction details if required.
- The user can search for a particular transaction based on the Transaction From (Date).
- The user must select the appropriate transaction from the left panel of the screen.
- Click Approve, the following message will appear.
- Click Yes, to approve the transaction.
¶ Audit Transaction Details
The Audit link allows the user to review and confirm details of the added transaction if required.
- The user can search for a particular transaction based on the Transaction From (Date).
- The user must select the appropriate transaction from the left panel of the screen.
- Click the Audit link, the following message will appear.
- Click Yes.
Note: Once the transaction is audited, the user cannot edit or delete it.
¶ Delete Transaction Details
The Delete option allows the user to delete the added or existing transaction details if further or subsequent transactions are not executed.
- The user can search for a particular transaction based on the Transaction From (Date).
- The user must select the appropriate transaction from the left panel of the screen.
- Click Delete, the following message will appear.
- Click Yes, the following message will appear.
- The user must enter the appropriate Comments.
- Click OK, to delete the transaction.
¶ Functional Use Cases
| Sl. No. | Use Case | Business Scenario | Functional Outcome in ERP |
|---|---|---|---|
| 1 | Transfer CWIP to Fixed Asset | When a project or asset under construction is completed and ready for use, the CWIP amount needs to be transferred to the appropriate fixed asset account. | The selected CWIP ledger is transferred to the fixed asset ledger, and the asset becomes operational in the ERP system. |
| 2 | Add Cost Distribution Details | After saving the CWIP transaction, additional costs related to the asset (e.g., installation or freight) need to be distributed. | The user can allocate and record cost distribution to the relevant asset capital account, ensuring accurate capitalization. |
| 3 | Import Cost Distribution via Excel | When multiple cost entries need to be updated, importing from Excel simplifies bulk entry and ensures data consistency. | The system imports cost distribution details automatically and saves them if debit and credit amounts match. |
| 4 | Approve Transaction Details | After reviewing the CWIP transaction, the authorized user must approve it to confirm the capitalization process. | The CWIP transaction is approved and locked for further modification, making it available for reporting and depreciation. |
| 5 | Audit Transaction Details | Once approved, the audit team reviews and confirms the accuracy of the transaction details for compliance and record-keeping. | The transaction is validated and marked as “Audited,” ensuring all records are verified and ready for financial reporting. |
| 6 | Delete Transaction Details | If a CWIP transaction is entered incorrectly or the asset is not ready for capitalisation, the record must be deleted. | The transaction is removed from the system after confirmation, ensuring data accuracy and preventing duplicate entries. |
¶ Use Case Scenario
- Click here for a detailed use case scenario.
¶ Transaction Checklist
| Steps | Checklist Item | Details / Purpose |
|---|---|---|
| 1 | Verify user access rights | Ensure the user has access permission for the CWIP transaction screen. |
| 2 | Confirm Asset Type creation | Asset Type must be created to categorize the asset correctly. |
| 3 | Validate Asset Master setup | Asset details including Capital and Depreciation accounts must be defined. |
| 4 | Check CWIP accounts' availability | Confirm that CWIP accounts are created and mapped in the ledger. |
| 5 | Ensure Asset Master Cost Distribution setup | Verify that the cost distribution setup is completed for allocating expenses accurately. |
| 6 | Review Profit Centre mapping | Make sure the correct Profit Centre is assigned to ensure proper financial reporting. |
| 7 | Confirm ledger mapping | Verify that the Transfer From (CWIP Ledger) and Transfer To (Fixed Asset Ledger) accounts are defined. |
| 8 | Verify opening balances | Ensure CWIP account balances are available for transfer. |
| 9 | Review supporting documents | Check asset completion certificates, invoices, or work completion notes before transfer. |
| 10 | Validate Excel template for cost distribution | If using Excel import, ensure the template is correctly formatted and filled. |