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.