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Administrator Guide
Last Updated: 2023-06-23
Steps: Configure Capital Projects

Steps: Configure Capital Projects

Set up project infrastructure.
Project capitalization gives you greater visibility into project costs. You can manage your:
  • Acquisition in transactions.
  • Association of transactions with project assets in the project.
  • Capitalization of those project assets into business assets.
  1. To identify the ledger account in which you want to record the resulting accounting for transactions tied to capital projects, configure the
    Work In Progress
     account posting rule.
  2. Edit Domain Security Policies.
    Configure the
    Manage: Capital Projects
     security domain in the
    Capital Projects
     functional area.
  3. Edit Business Processes.
    As you configure the business processes and corresponding security policies related to project capitalization, consider:
    Option Description
    Verify Capital Project Expense
    When you review and mark capital project transactions as an expense rather than an asset, Workday launches this business process for approval.
    Asset Registration Event
    When you capitalize project assets, Workday launches this business process for approval.
    Asset Removal Event
    When you undo project asset capitalization, Workday launches this business process for approval.
  4. If you enabled worktag balancing for your tenant, evaluate your worktag balancing rule set and your financial balancing rule for the supplier invoices and expenses transaction types.
  5. (Optional) Access the
    Edit Tenant Setup - Financials
     task.
    Select worktag types to add to the
    Include Worktag Types in WIP
     section. These worktag types define the level of detail for the journal lines generated from the Work In Progress account posting rule. The selections apply to:
    • Expense report lines and itemizations.
    • Labor cost summaries from fully burdened and standard costing summarization methods.
    • Supplier invoice lines and line splits.
  6. If you enabled multibook asset accounting in your tenant, add or verify book codes for the Company.
    Optionally, enable
    Post Work in Progress to Company Asset Book Codes
     in your tenant to post WIP transactions automatically to each asset book code.
  7. Create rules that automatically classify capital project transactions as expenses or assets, eliminating manual WIP accounting.
You can now create capital projects and tag transactions with those capital projects. You can review WIP transactions and assign them to project assets, which you can then capitalize.
Capitalize projects.