Start Depreciation of Fixed Assets with Construction in Progress

Construction in progress (CIP) tracks all of the invoices in working projects for a company. As these projects are completed, the invoice records can be capitalized (one invoice) or consolidated (multiple invoices) to a fixed asset. The fixed asset record can then start to actively depreciate now that it has been placed in service.

Start Depreciation

Once a project is completed, the sum of all the invoices can be totaled into a fixed asset. Bassets eDepreciation has a very flexible CIP Summarry feature and a multi-invoice browse. This easily allows the user to select a subset of invoices by project number or other criteria. After the invoices in the CIP module have been consolidated they will be tagged with the consolidation date and associated asset number. This allows for easy retrieval of invoice detail to answer any questions or provide audit records.

Here are a few related posts:

Summarize Construction in Progress Invoices

Dynamic Browse

Questions? Comments? Let us know in the comments section below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can register for our live webinar, download a free evaluation copy and get a personalized pricing estimate.

Import Accounts Payable Invoices to Construction in Progress

The Accounts Payable Import option allows you to automate the entry of your invoice records into the Bassets eDepreciation CIP module.  A file is produced from the Accounts Payable System with information similar to the example below:

Proj #

   VENDOR

INVOICE DATE

AMOUNT

22105

   DELL 343167 10/02/13

990.52

22105

   IBM 12-HD7743 10/02/13

2593.17

22105

   CISCO FSG12112 10/02/13

102.96

22105

   SEAGATE 7357 10/02/13

6917.00

22105

   WESTERN DIGITAL 10485 10/02/13

6821.17

This information can be stored in an Excel spreadsheet or various text file formats to prepare for import processing.

Import Accounts F

The A/P Import Form consists of four tabs for each of the following steps:

  1. Define source
  2. Preview data
  3. Map fields
  4. Run import

Once the source file is selected, the preview tab will read the incoming file and display the contents in an on-screen grid. Now the data is ready to be mapped to the fields in CIP. The run import tab will process the data contained in the Source Data file and create the associated invoice records in Bassets eDepreciation.

We have previously covered:

Import Fixed Asset Data with an Accounts Payable Interface

Converting CIP (Construction in Progress) Invoices to Fixed Assets

The A/P Interface is a powerful option that can process invoice data directly into fixed assets or into a CIP module. Utilizing CIP as a “holding” area enables the tracking of invoices until a project is completed. Once completed, groups of invoices can be easily consolidated to fixed assets to start depreciation. This consolidation process had the added benefit of a complete audit trail to view all associated invoices by either asset or project.

Questions? Comments? Let us know in the comments section below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

Summarize Construction in Progress Invoices

Construction in Progress (CIP), also known as the Invoice and Procurement Tracking Module, enables the user to collect invoices associated with projects. Upon the completion of a project, the user can consolidate all or selected invoices into one or more asset records to begin depreciation. This is a popular feature in manufacturing and also in the retail sector to track the building of new stores.

The number of invoices in some projects can grow quite large over time. Bassets eDepreciation includes a new feature that allows for easy summarization of the invoice detail. Here is a sample screen shot of the CIP Home Page:

Summarize Construction

This is a great tool that presents 4 quarterly views of invoice detail in a simple summary format rather than sifting through several reports. Each view displays the total number of invoices for each monthly period along with quarterly totals. In addition there are totals for the entire year along with the ability to easily change the selected year.

There are also 3 higher level summaries that look at all invoices for every year. Even greater visibility can be achieved by using the powerful drill down feature to view the detail behind each summary. A simple double click on any summary will launch the CIP Maintenance Form with the associated detail invoice records.

If you have to deal with hundreds or even thousands of invoices on an annual basis then this tool can be a real time saver. Setting a filter for a single project, vendor or other invoice attribute will limit the invoice totals to a selected subset to easily answer project questions.

What do you think? Let us know in the comments section below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

Converting CIP (Construction in Progress) Invoices to Fixed Assets

There are several stages in the life of fixed assets. They are acquired or constructed before being placed in service for depreciation. Most assets, like computers, vehicles or others which do not require additional preparation are immediately placed in service and begin depreciating. Others, like buildings or production lines, may take some time before they are ready for use. This second group of assets are considered to be construction in progress and do not begin depreciating until they are put into use.

The CIP module in Bassets eDepreciation enables you to track a group of invoices by project that will be consolidated into one or more asset records. Invoices can be entered during the construction to record the associated costs until the finished asset is placed in service. Once the project is completed, the sum of all the invoices will be totaled into a fixed asset. Now the asset is ready for use and depreciation will begin.

The invoice records in the CIP module that have been consolidated into asset records will be tagged with the date that they were consolidated, and the System Asset Number of the asset record that was created by the consolidation. This allows for easy retrieval to answer any questions or provide audit detail.

Invoices Consolidated to Fixed Assets

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More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.