Introduction :
In Oracle Fusion Financials, organizations often incur project-related costs that need to be capitalized as assets. However, users frequently face challenges in correctly creating Construction in Progress (CIP) assets and transferring them from Project Portfolio Management (PPM) to Oracle Fixed Assets.
This blog explains the end-to-end process of creating a CIP asset, generating asset lines, transferring them to Fixed Assets, and successfully posting the asset, ensuring accurate capitalization and financial reporting.
Why we need to do / Cause of the issue:
In many implementations, project costs are captured correctly, but assets are not capitalized due to:
- Incorrect project financial setup
- Missing capital asset creation at project level
- Asset lines not generated or transferred
- Incomplete asset details during posting
Without proper CIP asset creation and transfer, project costs remain in WIP, leading to:
- Incorrect asset balances
- Delayed capitalization
- Mismatch between PPM and Fixed Assets
Hence, following the correct CIP asset creation process is critical for smooth integration between PPM and Fixed Assets.
How do we solve:
Projects → Project Financial Management
Creating a new project
Manage Project Financial Settings and then click on Capital tab, and Select Create Capital Asset to create a CIP Asset.
Enter the asset details like Asset Name, Estimate In-Service Date, Asset Description, Actual Units, Asset Category, Asset Key, Asset Location etc.
Select the specific asset under the asset assignment. Click add asset at project level
Select the asset, and then click on save and close.
Manage Financial Project Plan → add the task number and task name.
Manage Project Budget
Manage Project Cost
Now process the invoice with the Budget amount, then search the Project cost
Then “Generating the Asset Lines”
Update the Project Asset Type as Built and provide Actual In-Service Date with Current Open Period of FA Module. Then, click on save and close.
Generate Asset Lines
Manage Asset Lines → Asset Lines will be generated with the status as “Pending”
Transfer Assets to Oracle Fusion Asset
Then again go to the “Manage Asset Lines”
Manage Asset Lines → Asset Lines will be generated with the status as “Transferred”.
Posting the Asset Lines in Fixed Asset
Click on the Asset, that has been transferred from PPM
Enter the “Asset Key” and “Asset Location” information and change the Queue status to “Post”. Click on Save and Close
Click on Ready to Post and then click on Post All.
Back to Asset in PPM module to Update Assets information from Oracle Fusion Assets.
Verify that Asset Number has been generated from Fixed Asset module to PPM.
Conclusion:
By following the above structured approach, we can successfully:
- Create CIP assets in PPM
- Capitalize project costs accurately
- Transfer assets seamlessly to Fixed Assets
This process helps organizations maintain accurate asset accounting, improves audit compliance, and ensures smooth PPM–FA integration in Oracle Fusion Financials.
