Capitalisation is a key financial process that ensures investment costs are allocated over time rather than being treated as immediate expenses. By systematically applying capitalisation, organisations can improve financial accuracy, maintain compliance, and align costs with the periods in which they generate value. 

The capitalisation process determines which resource and non-resource costs qualify for capitalisation based on predefined rules. It runs daily to update capitalised amounts and ensure financial records reflect the latest calculations. 

This article outlines how the process works, when it runs, and the key criteria that determine whether costs are capitalised.

How and When Capitalisation Runs

The capitalisation process runs automatically on a daily schedule, ensuring that all eligible resource and non-resource costs are recalculated and updated. This regular processing keeps financial records accurate and aligned with reporting requirements.

However, when reviewing forecasts or actuals, immediate updates may be needed rather than waiting for the next scheduled run. In such cases, the capitalisation process can be triggered manually from a Project Workspace, but it will only recalculate capitalisation for that project, not the entire portfolio. This allows project teams and PMOs to gain up-to-date financial visibility without waiting for the next scheduled run, supporting more informed decision-making.

To trigger the capitalisation process for a given project, navigate to the project workspace and select 'Trigger Capitalization' from the Tools menu.  

Capitalisation Lock date

The Capitalisation Lock Date defines the cut-off point from which capitalisation amounts are recalculated, ensuring that only relevant financial records are included in recalculations. It serves as a financial control mechanism, preventing unintended adjustments to historical data.

• Any actuals or forecasts posted before this date are locked – they cannot be adjusted, and their capitalisation amounts remain unchanged.
• Only actuals and forecasts posted after the lock date are included in the capitalisation process, ensuring a controlled and auditable financial process.

By enforcing this lock, Fluid prevents unintended changes to historical financial records, maintaining consistency and compliance.

The capitalisation lock date can be found and updated from the Financial Administration page.

While the Capitalisation Lock Date is updated far less frequently than the Financial Lock Date, it should still be managed carefully. Financial administrators typically set the Capitalisation Lock Date to the end of the financial year before the previous one (e.g., if the current year is 2025, they set the lock date to December 2023). This approach keeps the most recent financial year open for actuals adjustments and capitalisation recalculations while ensuring that older records remain finalised.

Capitalisation Rules: When Costs Are Capitalised

For a financial record (resource or non-resource cost) to be capitalised, it must meet specific capitalisation eligibility criteria.

General Capitalisation Rules

A financial record will be included in capitalisation calculations only if:

• The project is set as eligible for capitalisation.
  
  
• The financial date (or financial month in the case of resource actuals) of the record falls:
  • After the Capitalisation Lock Date
  • Before the project Implementation Date
  • For actuals – before the Financial Lock Date.
  • For forecasts – after the Financial Lock Date (i.e. must be in open months).
    
    
• The expense type of the financial record is configured as capitalisable.

Additional Capitalisation Rules

Further rules apply depending on whether the cost is a resource cost or a non-resource cost.

For a detailed breakdown of capitalisation rules for each type of cost, refer to the following articles:

• Non-Resource Cost Capitalisation
• Resource Cost Capitalisation

Understanding these rules ensures that capitalisation is applied correctly, supporting accurate financial reporting and compliance with accounting standards.