Capitalized production: how to account for it?

Updated March 29, 2026 - Capitalized production corresponds to work or developments carried out by the company for itself and recorded as assets. In practice, this subject concerns closing, accounting result, internal costs and the tax reading of the file. In 2026, it is necessary to articulate the General accounting plan and the tax doctrine.

Capitalized production occurs when a company creates a tangible or intangible asset for its own use, instead of purchasing an asset already ready for use from a third party.

Frequent examples:

• ▸technical arrangements carried out internally;
• ▸development of immobilizable software;
• ▸manufacturing of equipment intended for exploitation;
• ▸internal works that can be integrated into the production cost.

To complete, see Optimization of tax results before the close of your accounting year, Taxation and business taxes and Taxation and declarations: VAT, IS, advance payments.

The accounting logic consists of:

• ▸immobilize the produced asset;
• ▸record in return a product of capitalized production in account 72;
• ▸then depreciate the asset according to its nature and duration of use.

The difficulty is not the account structure. The difficulty is to determine what can be activated and how to calculate the production cost.

The cost to remember

The cost of production must be documented. It may include, depending on the case, direct costs and a share of indirect costs directly attributable to production. On the other hand, we cannot capitalize everything that has been spent indiscriminately.

Capitalized production modifies the presentation of the result. If it is poorly evaluated, the company risks:

• ▸an artificially improved result;
• ▸a poorly fixed depreciation base;
• ▸insufficient documentation in the event of an inspection;
• ▸tax adjustments.

Hayot Expertise Advice: the right question is never "how to improve results with immobilized production?" but “what costs really meet the activation criteria and can be proven?”

We recommend documenting at least:

• ▸the exact nature of the asset created;
• ▸the date of commissioning;
• ▸the direct costs retained;
• ▸the method of allocating indirect costs;
• ▸the chosen depreciation period.

• ▸activate current operating loads;
• ▸forget proof of time spent or costs incurred;
• ▸immobilize an asset too early that is not yet usable;
• ▸do not make the link between accounting and future depreciation.

We help you document the cost of production, validate the accounting entries and measure the real tax impact before closing.

Quick link: Structuring a solid accounting close

Immobilized production is a real technical subject of closure. Properly processed, it gives a fairer image of the assets created by the company. Poorly managed, it exposes itself to costly accounting and tax corrections.

Contact: Do you want to validate a cost activation or a capitalized production entry before balance sheet? Our firm can secure your file and your documentation. Make an appointment with Hayot Expertise

(Official sources: ANC regulation 2022-06, BOFiP on fixed assets and cost assessment)