Examples of additional costs include freight, on-floor delivery, accessories, and installation costs. Component Parts Component parts that individually cost less than the capitalization level, but when combined exceed this measure are capitalized when purchased as a functional unit. Replacement Parts Subsequent replacements and enhancements made to a unit are capitalized if they meet the capital equipment specifications. Replacement parts that are acquired as part of normal repair and maintenance are not capitalized. Labor cost is included when it is supported by documentation from an external source or an in-house shop.
Documentation normally includes internal or external requisitions.
The RPI form initiates the tagging process and is used to update the equipment inventory list. It is the responsibility of the FAM and PM's to ensure that property is acquired in accordance with this policy. Purchase Orders Departments can acquire property by submitting a Purchase Order to the Procurement Department, who assists in the selection of the source and issues the Purchase Order. Included in the Purchase Order is the appropriate capital equipment expenditure object code. Equipment purchased with the pro-card is reallocated to the correct capital equipment expenditure object code at the end of each month.