During which process are costs settled to Asset Accounts in GFEBS?

Costs are settled to Asset Accounts in GFEBS during the Periodic Settlement process. This process is essential for transferring accumulated costs from work in progress (WIP) to the appropriate asset accounts. When projects or assets incur costs over time, these expenditures accumulate in a temporary holding area. Periodic Settlement plays a critical role in moving these expenses from WIP to the designated asset accounts, ensuring that financial statements accurately reflect the value of the assets.

This process typically happens at regular intervals, such as monthly or quarterly, depending on the organization's accounting practices. By performing periodic settlements, organizations can keep their asset values up to date in the financial records. This helps in reinforcing the accuracy of financial reporting and budgeting processes.

In contrast, final settlements usually pertain to definitively closing out a project or internal order, marking the completion of all associated costs rather than just the periodic accumulation and transfer. Settlements to cost centers or internal orders focus on different organizational structures rather than directly addressing the asset ledger.