Construction Work In Progress (CWIP)
What is CWIP? - A temporary balance sheet account that tracks all costs associated with construction, fabrication, internal use software, and capital equipment purchases.
Costs remain in CWIP until completion of the asset, which initiates the capitalization and depreciation process.
A completed Plant and Capital Equipment (PACE) Project Life Cycle Form is required prior to starting any new construction, fabrication or internal use software project.