Set up capitalisation

These settings decide which cost is capitalised, what each justification covers, and who approves it. Set them up before you close your first period.

You need access to financial settings — ask your Flowstate admin.

1. Choose your CapEx framework

1. Go to Settings → Finance → Frameworks & Fiscal Year.
2. Under CapEx Framework, choose the Default framework:
   • IAS 38 / FRS 102 (United Kingdom)
   • ASC 350-40 (United States)
   • AASB 138 (Australia)
   • NZ IAS 38 (New Zealand)
   • IAS 38 / ASPE 3064 (Canada)
   • IAS 38 / SNC NCRF 6 (Portugal)
3. Save.

Flowstate doesn't start any justifications until you've chosen one. The sections each framework uses are on How capitalisation works.

2. Give each cost centre a category

1. Go to Settings → Finance → Cost Centres.
2. Set each cost centre's Category: CapEx, OpEx, R&D, or Untracked for cost you don't classify.
3. Set the Default Cost Centre for time that isn't on any project, such as leave.
4. Under After a project ends, choose the cost centre for time logged after a project's end date — usually your OpEx cost centre. A project with its own Post-completion CC uses that instead. Leave it blank and a finished project keeps its running cost centre, so time logged after it ended stays CapEx.

Changing a category changes how every project on that cost centre is reported, so agree changes before you close a period. See Organisation basics.

3. Set each project's cost centres

On Finance → Capitalisation → Projects, set each project's:

• Cost centre — where its cost goes while the project runs.
• Post-completion CC — where its cost goes after its end date.

You can also set them on the project itself.

4. Choose who approves and completes justifications

1. Go to Settings → Finance → Cost Capitalisation Review.
2. Under Approval Stage, select Add Member and add the people who review justifications.
3. Under Completion Stage, add the people who record the capitalised amount and amortisation.
4. Select Save Workflow.

Tip

Add to the Approval Stage only people whose approval you'd accept on its own — one approval moves a justification on.

If you leave a stage empty, people who can change your financial settings do that step instead.

5. Catch wrong cost centres (optional)

The project analysis scan can suggest, or set, missing and wrong cost centres for you. See Review cost-centre recommendations.

6. Send justification tasks to Slack (optional)

Go to Settings → Integrations → Slack and turn on Cost capitalisation flows. Project owners then get their justification tasks and weekly reminder in Slack as well as the Inbox and email. See Slack.