Scenario:
When an asset that was under construction is completed and ready for use, the CWIP amount must be transferred to the appropriate fixed asset account.
Action:
The user selects the relevant CWIP ledger in the Transfer From field and the fixed asset ledger in the Transfer To field, then saves the transaction.
Outcome:
The CWIP balance is successfully transferred to the fixed asset account, and the asset becomes operational in the ERP system.
Scenario:
After saving the CWIP transaction, additional costs related to the asset (such as installation or transportation) need to be distributed.
Action:
The user selects the transaction, opens the Cost Distribution link, and enters the relevant cost distribution details manually or through an Excel import.
Outcome:
All associated costs are allocated to the correct asset capital account, ensuring accurate capitalisation and reporting.
Scenario:
When multiple cost entries need to be added, importing from Excel helps simplify bulk data entry and minimise manual effort.
Action:
The user downloads the Excel template, enters the asset cost distribution details, and uploads the file to the system.
Outcome:
The ERP system automatically imports and validates the entries. If debit and credit amounts match, the transaction is saved successfully.
Scenario:
After reviewing a CWIP transaction, an authorised user needs to approve it to confirm the asset capitalisation process.
Action:
The user selects the CWIP transaction and clicks Approve. Once confirmed, the system updates the approval status.
Outcome:
The transaction is approved, locked for editing, and available for further reporting and depreciation processing.
Scenario:
Once the transaction is approved, it must be reviewed and verified by the audit team for compliance and accuracy.
Action:
The auditor selects the transaction and clicks Audit, confirming the verification.
Outcome:
The transaction is marked as Audited, confirming that it has been reviewed and validated for financial reporting.
Scenario:
If a CWIP transaction was entered incorrectly or the asset is not ready for capitalisation, it must be deleted to maintain data accuracy.
Action:
The user selects the incorrect transaction and clicks Delete, enters comments, and confirms the action.
Outcome:
The transaction is deleted from the system, preventing incorrect or duplicate financial entries.