Accounting Entries in Project Asset Capitalization Process

Hello Dina,
Can you explain the accounting entries for capital projects for the scenario mentioned in the below points ?
1. A a project related supplier invoice is created for a capital project. It is validated, accounted and entries are transferred to GL. These are the entries:
Dr - Asset Clearing Account
Cr - Supplier Liability Account
2. Now, the transaction is interfaced to projects. The cost distribution line for the transaction only shows the Debit entry here (standard functionality)
Asset Clearing Account - Dr
Cr - Blank.
Since there are no adjustments to be made nor any more costs to incur, the project is capitalized.
3. Once asset lines are generated and then interfaced to Oracle Assets, the same clearing account (i.e. Asset Clearing Account of step 1) can be seen in Mass Additions screen in 'Clearing Account' Field. WHERE IS THIS USED ???
4. When the additions are set to POST, the system asks to enter 'Expense Account' and defaults the 'Bonus Expense' account from the setup for the asset category. WHERE IS THIS USED ???
5. Finally in the output of the Post Mass Additions request, there is a column 'Asset Account' which shows the value of the 'Asset Cost' account from the setup for the asset category. WHAT IS THIS FOR ???
Request you to throw some light on this.
Thanks,
Chandu

Hi
See my response on your later post.
Dina

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Supplier invoice debit an account XXXX. This should be a CIP account (construction in progress), which is an Asset type account in GL.
When you capitalize the project, the system is populating the mass addition 'clearing account' field with the account debited by Projects (in your case, by AP). This will be the XXXX account.
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When you generate the invoices in Projects the system generates the accounting and the invoice is interfaced from Projects to AR with the accounting generated by Projects. AR will later interface the transactions to GL.
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Accounting Entries in Project Asset Capitalization Process

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