Capitalizing Work Orders

You can capitalize part or all of the costs incurred, while maintaining an asset. The asset's book value and
useful life increment with the additional value, within Oracle Fixed Assets. Accountants analyze the
maintenance cost history to decide which costs to capitalize. You can identify the work orders that increase
an asset's value. You can capitalize only the costs of work orders at the Complete - No Charges or Closed
statuses.
When defining a maintained asset number, you can optionally enter Fixed Asset information to associate a
Fixed Asset Category and Fixed Asset number with the maintained asset number, if Oracle Fixed Assets is
installed. See: Defining Asset Numbers.
To capitalize work order costs
1. Navigate to the Find Work Orders window (Billing and Capitalization > Work Order Capitalization).
2. Query one or more work orders to capitalize.
a. You can narrow your search criteria, using the fields at the top of the window. For example, you
can enter a specific work order, asset number, or specify if you want to display only work
orders at a Closed status.
b. Optionally choose Clear to reset the search criteria to the default search criteria (all fields are
cleared and the Closed and Complete - No Charges Status check boxes are selected).
c. Choose Find. The Work Orders region displays queried work orders, dependent on your search
criteria.
3. Select a work order.

You can search using a number of search parameters such as Work Order and construction Estimate
Number. If you search by estimate number, the values available for selection are only the
construction estimates that have work orders created for them.
Find Work Orders

4. Click the Capitalize Work Order button.

This button is enabled for only those work orders that have amounts available to capitalize.

Work Order Capitalization

5. Enter a Capitalization %. The costs associated with the selected items and resources within the
Capitalization region are capitalized by this percentage.
6. After selecting items or resources to capitalize within the Capitalization region, choose Calculate
Amounts to view the projected amount to capitalize, based on what you had entered within the
Capitalization % field. The asset's book value and useful life will increment with this additional value
within Fixed Assets.

7. Optionally change the defaulted Offset Account. Capitalized maintenance costs are credited to
their associated maintenance expense accounts, while this Offset Account is debited by the same
amount within Fixed Assets. Maintenance expenses that are capitalized are considered capital asset
value and not maintenance expenses, within the General Ledger.
8. The Comment field contains the work order number, Asset, and Asset Description, concatenated
together.
9. Choose Initiate Capitalization to execute a concurrent process that capitalizes the calculated
amounts for the fixed asset.
10.
Optionally choose View Past Details to view all past capitalization transactions for the fixed
asset.
View Past Details

a. Choose Close.
o Close the windows.