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

Steps: Manage Capital Projects

Configure project capitalization.
Once you've configured project capitalization, you can manage project costs, identify them, and delay recognition of these expenses. Workday automates the accounting entries along the way.
  1. When creating a capital project, select the:
    • Capital
       check box.
    • Company
       that is working on the capital project.
  2. To capture separate, ongoing costs of a capital project that's in progress, create project assets.
  3. Tag transaction lines with a capital project or 1 of the phases or tasks to place incurred costs into the Work in Progress (WIP) account.
    You can tag these transactions:
    • Expense report lines, including line itemization.
    • Financial accounting adjustments.
    • Manual journal lines with a WIP ledger account that don't go through an account posting rule.
    • Supplier invoice lines, including line splits.
    • Transactions that result in labor costs (such as time tracking, payroll costing allocations, and payroll input).
    Optionally, access the
    Create Capital Project WIP Exclusion Rule
     task to create rules that automatically classify transactions as expenses or assets, eliminating manual WIP accounting.
  5. (Optional) Set up automatic assignment of project assets.
  6. Register your fully accounted project asset costs as business assets.
  7. To monitor the capital project to track project assets and total project costs, use the
    View Project
     report.
    As you review the report, consider:
    Option Description
    Transactions Reclassified as Expense
    Displays summarized expenses by transaction type for transactions marked as expense during the transaction review. To view a list of transactions for that transaction type, click the amount.
    Project Assets
    Lists all current buckets to capture separate, ongoing costs of the capital project. Click an amount to view the transactions that comprise the uncapitalized, capitalized, and project costs. For a capitalized project asset, click the business asset to see the details including account information, depreciation schedule, and lifecycle history.
  8. As additional project costs come in, recapitalize project assets to make acquisition or post-acquisition cost adjustments to the corresponding business asset.
  9. At the end of each period, reconcile your WIP accounts to your transactions.
  10. (Optional) Adjust expense costs related to the capital project by creating manual journals. Create a manual journal line against your spend account and tag it with the capital project.
    These lines aren’t reviewable in the
    Review Capital Project Transactions
     task.
  • Track the assets through their entire lifecycle.
  • Perform lifecycle events for capital assets.