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Slide notes: In this tutorial we will perform an instance of Asset Capitalization. Whether the Asset is acquired through Purchasing or by other means makes no difference to the process, because we always Capitalize from a GL Account. Therefore, an Asset acquired through Purchasing will have it's cost allocated in the 1st instance to some Costing or Transit or Suspense Account, and if acquired in any other way, the Cost will end up in an appropriate Account by Journal. Usually, in the costing Account, the remaining Amount will already be net of Tax, as it is usual to Capitalize an Asset net of Tax. Of course, there are some exceptions to this rule.

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Slide notes: Therefore, when we perform the Capitalization Journal, then the Asset Register will be debited with the Purchase Price, net of Tax, and the GL Cost Account will be credited.

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Slide notes: From the Asset menu, we choose Capitalize.

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Slide notes: The Ledger Credit Account will be the Cost Account where the Cost of the Asset is currently found.

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Slide notes: When we choose POST, the Asset is capitalized.

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Slide notes: When we enquire on that Asset now, we will be able to see the effect of Capitalization.

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Slide notes: On the Asset Item Values drill, we can see the Net Book Value, currently the same as the Purchase Price, since no Depreciation has been performed so far.

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Slide notes: We can also drill the Transaction Journal that was generated by the system at the time of performing of the Capitalization.

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Slide notes: And here we can see the effect in the Accounts.

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