CAPITAL PROJECT PROCESS ยท CAPITALIZE
How do project costs become asset value?
Eligible costs accumulate on an asset under construction and settle to one or more final fixed assets when capitalization criteria are met.
How SAP controls it
Settlement rules, asset classes, capitalization dates, source structures, depreciation areas, and accounting policy govern the transfer.
Example
Completed production equipment settles from the project to its final asset master and begins depreciation when ready for use.