Capital property (also referred to as fixed/capital assets or OCO) is real, personal or intangible property that has a cost equal to or greater than an established capitalization threshold and has a useful life extending beyond one year.
In general, departments deal primarily with tangible personal property, which at FSU is considered capital if its acquisition cost is equal to or greater than $5,000. The cost of a capital asset should include ancillary charges necessary to place the asset into its intended location and condition for use (such as freight and transportation charges, installation, and training).
The cost of replacement parts, repairs, and service contracts should not be added to the cost of an asset. An equipment improvement or upgrade that collectively cost at least $5,000 and extend the useful life of the asset should be considered capital. Generally, capital assets are purchased using a 76xxxx account code. Expendable property includes non-consumable tangible personal property with a useful life less than one year and/or an acquisition cost of less than $5,000.
Generally, expendable property is purchased using a 74xxxx account code. While departments are responsible for safeguarding and properly managing all University-owned property, regardless of cost, an annual inventory is required of capital assets but not expendable property.