What Is a CIP Asset and How Does It Work in Aclarian?

What Is a CIP Asset?

CIP stands for Construction in Progress. It is a type of capital asset that is not yet finished or ready to use.

Think of it like a building that is still being built. The money spent on it is tracked as a CIP asset until construction is complete. Once it is finished and placed in service, it is converted into a regular fixed asset and depreciation begins.

How Does Aclarian Handle CIP Assets?

Aclarian tracks CIP assets in the Capital Assets module. When a CIP project is complete, you use the Asset Addition Form to convert it into a fixed asset.

For this process to work correctly, your CIP asset type must be set up correctly in the system. If it is not, the assets will not appear on the Asset Addition Form when you try to convert them.

What Is Asset Types Management?

Asset Types Management is where your organization defines the different categories of assets you track. Examples include buildings, equipment, vehicles, and Construction in Progress.

Each asset type has settings that tell the system how to handle it. One of those settings is the Construction in Progress flag. This flag tells the system that assets of this type are CIP assets.

If the Construction in Progress flag is not turned on for your CIP asset type, the system will not treat those assets as CIP assets. They will not appear on the Asset Addition Form for conversion.

What Is Available Cost?

Available Cost is the amount of a CIP asset that is still available to be converted into a fixed asset. Think of it as the balance remaining on the CIP project.

When a CIP asset is created or imported into Aclarian, the system should automatically populate the Available Cost based on the Acquired Cost. If this did not happen correctly, the Available Cost may show as $0.00.

The system will not show a CIP asset on the Asset Addition Form if the Available Cost is $0.00. Even if the asset type is set up correctly, a $0.00 Available Cost will prevent the asset from appearing.

Why Does the Setup Matter?

If either of these two things is not set up correctly, your CIP assets will not appear on the Asset Addition Form:

• The Construction in Progress flag is not set to Yes in Asset Types Management
• The Available Cost is showing as $0.00

Both must be correct for the conversion process to work.

What Should I Do If My CIP Assets Are Not Appearing?

Contact the Aclarian Client Support team. Some parts of this setup require backend access that is not available through the front end.

For more detail on this specific issue, see: Why Are My CIP Assets Not Showing on the Asset Addition Form?