Problem: How to entry Construction Work in Progress of Fixed Assets without charging Depreciation?
Solution: Use one of two entries for costs of Construction-in-Progress as shown.
1. For purchase of inventory, allocate its costs with Invoice Received document.
At Inventory tab, change Item's GL Account to GL Construction in Progress:
Post Invoice Received with DR Construction in Progress and CR Current Trade Payable GL accounts:
2. For already accrued expenses, create Other Expense (Reversal) document to allocated costs to Construction-in-Progress.
At Expenses tab, put DR Construction-in-Progress GL Account.
In Accounts Dr Dimension, define Fixed Asset to allocate the expense:
Post Other Expense document with DR Construction in Progress and CR selected Expense account:
3. As a result of such entries, the balance on the Construction in Progress GL Account under the Non-current assets group appears:
NOTE In case, if Automatic Depreciation of these Fixed Assets is needed on monthly basis, accept Fixed Asset for accounting by Fixed Asset Entry document.
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