Expenditures must be correctly identified by the use of account codes to indicate whether or not the expense can be capitalized or considered an asset. A capital expenditure is incurred when money is spent either to buy or fix assets or to add value of an existing asset. A noncapital expense would be considered an expense necessary to complete the project but does not increase the value of an asset.
A limited number of capital and noncapital expenditure accounts are available for use. A complete list of valid accounts is available on the General Accounting Account Code website.
Construction Accounting: (352) 392-5778
General Accounting & Financial Reporting: (352) 392-1326