CapEx Planning

Asset planning, depreciation, disposals, and the entity-only dimension constraint

Module 3Module Walkthrough20 min

📖 Tell How CapEx Planning Works Individual asset or asset-class planning with automated depreciation, disposal modeling, and immediate P&L/BS impact visibility.

👁 Show Instructor Demo Facilitator opens CapEx New Asset Purchases, adds a test asset with a custom payment plan, and shows the P&L and BS impact timeline.

✅ Do Explore CapEx Pages Navigate to CapEx – General Admin. Identify the asset types configured. What accounts are mapped to each? Navigate to CapEx – New Asset Purchases and review the existing asset entries.

⚠ Entity-Level Only

CapEx in IFP v2.0 is planned at Entity level ONLY — no Department, Geography, or other dimensions. The entity-to-department mapping in CapEx General Admin handles distribution of depreciation to P&L dimensions. Department-level CapEx requires an extension.

Admin Setup

CapEx – General Admin

Asset types/classes with payment plan parameters and useful life settings
New in v2.0: Computer Hardware and Computer Software are now separate asset classes (accounts 1712 and 1772)
Entity-to-department mapping — every entity must have a department mapped
Map Net Fixed Asset Values to P&L accounts
Map Asset Types to Depreciation Accounts
Select CWIP (Construction Work in Progress) account
Select FX Rate Type for currency translation

🚨 Leaf-Level Accounts Only

All mappings in CapEx General Admin must point to leaf-level accounts. Parent-level mappings cause calculation failures and missing data in FP.

End-User Planning Pages

CapEx – New Asset Purchases

CapEx module — CE Asset Setup page showing asset categories and configuration — CE Asset Setup — configure asset categories, useful life defaults, and GL account mappings before entering individual assets

CapEx Disposals page — asset retirement entries with gain/loss calculation — Asset Disposals — record retirement date and proceeds; system calculates book value at disposal date and gain/loss automatically

CapEx P&L Impact summary — depreciation by asset category rolling into the Income Statement — P&L Impact view — depreciation flows through to OpEx accounts in the FP model; verify the IS mapping is correct for each asset category

Per asset: asset class, order date, in-service date, CWIP flag, depreciation method
P&L and BS impact shown on timeline automatically
Custom payment plans — enter exact cash payment schedule for specific assets

Other CapEx Pages

Page	Purpose
CapEx – Funding Details	Default payment plan (read-only); custom payment plan entry by period
CapEx – By Asset Type	Plan at asset class level — no individual asset tracking
CapEx – Asset Disposals	Enter disposal details; system calculates gain/loss and shows P&L/BS impact
CapEx – Net Fixed Asset Roll-Forward	Read-only report of net fixed asset roll-forward calculations

Sync to FP

After CapEx planning: Administration → Financials Model → FIN – Import from CapEx Model.

💡 Polaris Performance Note

When adding new assets, Polaris is optimized for bulk additions. Adding assets one at a time can be slow — batch additions where possible.

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