Choose between an expense and fixed asset purchase
Review the actual purchase and choose the appropriate bookkeeping treatment.
On this page
Prepare purchase records, in-service date and the basis, land value and useful life agreed with your bookkeeper.
Review the purchase details
Check the receipt, amount, property and what was bought or improved. Use your bookkeeping or tax preparer’s classification for that actual item.
Choose the matching workflow
Use Expense for the appropriate cost or Fixed asset purchase for an eligible capitalized asset. Enter the account, property and supporting document before saving.
Check for duplicate cost
Inspect the booked entry and any fixed asset record. Review depreciation through the separate asset schedule; do not book the full purchase again as an operating expense.
Check the result
- The original purchase has the reviewed classification without a second copy of the same cost.
FAQs
Is there one price threshold that applies to every asset?
Use the classification applicable to your records and situation. This guide does not create a universal capitalization rule.
Does adding an asset automatically correct an expense?
No. Review the original booked transaction and its offered correction workflow separately.