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Fixed Assets Certificate

kiran (accountant) (444 Points)

10 March 2023

what this the difference between Ready to use & Put to use certificates in assets capitalisation.

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Neha (ENTREPRENEUR) (200 Points)
Replied 11 March 2023

In the context of assets capitalization, "Ready to use" and "Put to use" refer to different stages of an asset's readiness for its intended purpose.

A "Ready to use" certificate indicates that the asset has been completed or acquired, and is now ready for use in the organization's operations. The asset has passed all necessary inspections and testing, and has been deemed ready to be put into service.

A "Put to use" certificate indicates that the asset has been deployed or installed and is now actively being used in the organization's operations. The asset has passed all necessary testing, inspections and approvals, and has been put into service.

In other words, the "Ready to use" certificate is issued when an asset has been completed and is ready for use, while the "Put to use" certificate is issued when the asset has actually been put into use and is contributing to the organization's operations.