Hi Sumeet,
Deepak is right, there is no direct functionality to handle WIP assets Capitalization. Please find below process for work around solution
1. Create Non Inventory Item and map the Expense account as CWIP A/C (you can maintain single Item)
2. Book Purchase Invoice for above Item, the Asset purchase cost will Dr to CWIP A/c and use the reference for identification.
3. Create Fixed Asset item before capitalization
4. Book Manual capitalization with WIP cost of specific asset, The Capitalization cost will Dr. to Asset account and Cr. to Aqu clearing account
5. Pass JE to clear Clearing account and CWIP a/c with actual capitalization cost
Note: If you keep the Aqu clearing and CWIP account as common, not require to pass the JE
Regards,
Kiran