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How CapEx justifications are drafted

Every capitalised project needs a written justification — the document an auditor reads to see why its cost meets your accounting standard. Flowstate drafts it from the project's own evidence, asks the project owner only what the evidence can't answer, and never overwrites what someone has written.

If you own a project, see Write and submit a justification. If you approve them, see Review and approve a justification.

When a justification starts

Flowstate starts a justification for a project on a CapEx cost centre once the project is under way — in progress, done, past its end date, or with recent effort. It also starts one for each project when you capitalise a whole initiative.

Your organisation needs a CapEx framework first. See Set up capitalisation.

What the draft is built from

  • Tickets from your project tool, with their history.
  • Pull requests, commits and reviews, if GitHub is connected.
  • The people who worked on it, and their effort.
  • Project updates, and the initiative and objective it belongs to.
  • Its cost centre, owner and cost.

The owner is never asked for anything Flowstate already has, such as timesheets, tickets or cost. The better the project's links and effort, the better the draft. See Projects.

If there isn't enough evidence yet

The writer shows Data readiness check, with what's missing and a link to fix each thing — such as Link a PMS project or Assign a cost centre. Flowstate checks again every day and drafts once there's enough. To draft with what's there, select Generate draft anyway.

How drafting works

  • One paragraph per section, following your framework.
  • Your edits always win. Once someone has typed in a section, Flowstate never rewrites it.
  • Drafting stops once the justification is submitted.
  • Out-of-date drafts are flagged, not replaced. If the project changes after drafting, the writer shows "Draft outdated — project data has changed since last generation". Select it to redraft the sections nobody has edited.

Each section shows where it's up to:

Section showsWhat to do
No draft yet.Select Draft with AI, or write it yourself
Queued — drafting will start shortlyWait a moment
Not enough project data to draft this section yetAdd the missing evidence, or select Draft with AI anyway
AI drafting failedSelect Retry

Questions

When the evidence leaves a gap, Flowstate asks rather than guesses. Questions are under AI Interview in the writer.

  • Answering a question updates the draft.
  • A question you skip isn't asked again.
  • Questions never stop you submitting.
  • Questions can only be answered before the justification is submitted. After that, edit the text.

When the project owner is asked

The owner is asked as soon as the project reaches Done — while the draft is still being written, if it isn't ready yet — and the task updates once the draft is ready. A project past its end date counts as finished too. They get a task in their Inbox and an email, and a Slack message if your organisation has turned that on. Every Monday, owners with justifications still to review also get a reminder.

A project that's never marked Done and has no end date never reaches this step. See After a project ends.

If the owner doesn't have a Flowstate account, their manager or team lead is asked instead, and the With column on the Rationales tab says so.

The Rationales tab

Finance → Capitalisation → Rationales lists every CapEx project and where its justification is up to.

Where each CapEx project's justification is up to.
Rationales tab grouping projects under Drafting and Completed, with Status, With, Notified, Draft and Questions columns

Where each CapEx project's justification is up to.

StatusMeaning
Not eligibleThe project isn't under way yet
Waiting for evidenceThere isn't enough evidence to draft yet. Flowstate checks again daily
DraftingA draft is being written
Ready for inputThe draft is ready for the owner to review and submit
In reviewSubmitted and waiting on approvers
Changes requestedAn approver sent it back to the owner
RejectedIt was rejected. The owner can revise and resubmit it
ApprovedApproved and waiting to be completed
CompletedCapitalised, with an amount and amortisation recorded

The With column shows who has the next step, and Notified when they were asked. Draft shows when the draft last finished, and Questions how many are open.

To export justifications from this tab, see Export your capitalisation figures.

R&D claim narratives are drafted the same way. See Build an R&D claim.

Flowstate Documentation