Reconciling Internal Orders Used for Construction in Progress Projects

The Plant Fund Accountant maintains a construction in progress (CIP) spreadsheet which details each open CIP internal order. For each internal order, the spreadsheet contains the beginning balance in CIP (general ledger account 145500), the current year expenditures, the amount capitalized or expensed for each project during the current year, whether closed projects were capitalized or expensed, the amount and source (i.e., cost center or internal order) of the budgeted funds, and the ending balance in CIP.

The Plant Fund Accountant ensures that the total beginning and ending CIP amounts per the spreadsheet reconciles to the amount being reported on the general ledger. In preparation for the end of each fiscal year, the Plant Fund Accountant identifies inactive internal orders and requests that Facilities Management determine whether the project is complete and the internal order can be closed.​

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