How does this affect me?
This feature enables organizations to manage internal capital initiatives, such as infrastructure development, research and development, and asset creation. It enhances financial governance, streamlines asset capitalization, and aligns project execution with strategic goals.
Key functionality of this feature includes:
- Project Classification: The project manager can use this classification to mark a project as an investment project.
- Transaction Estimates: The project manager can add estimates and budgets for each transaction type.
- Contract Restrictions: The system blocks investment projects from project contracts. This restriction keeps investment projects for internal use only.
- Financial Treatment:
- The system records all costs as work in progress (WIP).
- When you complete the project, the system lets you choose between two options. You can eliminate the project to generate a fixed asset, or transfer WIP costs to another ledger account.
This message is for awareness, and no action is required.
If you would like more information on this feature, please visit Enable the Investment project feature.