By definition, capital equipment must be usable for more than one year. For example, a computer will last, on average, three years after which point it becomes technologically obsolete and must be replaced. In contrast, under normal use a photocopy toner cartridge would only be expected to last a few months. The computer is considered a piece of capital equipment whereas the cartridge is classified as a supply. Examples of stand-alone equipment include scientific equipment, printers, and complete computer workstations.
Computers pose unique challenges.
For administrative purposes, the CPU box will be tagged and tracked as the main unit within a computer workstation even though the box itself cannot typically function without an attached monitor and keyboard. It is tagged and tracked as a single item. If this occurs, all purchase order numbers associated with the workstation must be listed on each individual purchase order. The acquisition of parts or components that materially increase the functionality or capacity of an existing piece of equipment are considered upgrades or expansions. A new systems server may originally be configured to support 100 users although it has the capacity to serve 400 users.