Problem: How we can pass entry for construction work in progress as fixed assets without charging depreciation.
Solution:
There are two ways on how to enter costs to Construction-in-Progress:
1) For Inventory Purchase cost of which needs to be allocated to Construction-in-Progress GL Account you can enter Invoice Received with changing the main GL account.
In Invoice Received Inventory Tab you can change Item's GL Account to Construction in Progress
Posted Invoice Received will DR Construction in Progress and CR Current Trade Payable GL accounts:
2) For already accrued expenses that need to be allocated to Construction-in-Progress you can create Other Expense Reversal Document with DR Construction-in-Progress GL Account.
In Accounts Dr Dimension you need to define Fixed Asset you allocate the expense to:
Posted Other Expense document will DR Construction in Progress and CR selected Expense account:
As a result of such entries, you'll have the balance on the Construction in Progress GL Account under the Non-current assets group, and if Automatic Depreciation needs to be created monthly for this Fixed asset, you'll have to accept this Fixed asset for accounting by Fixed Asset Entry Document.
