This information replaces FIS 603-01/02 Capitalization of Plant Funds & 606 Year End Processes for Capitalization


When is Capitalization Required?

Effective: 01/01/2003
Revised: 09/16/2015

Land/Easements & Right of Ways are capitalized regardless of amount.


Library special collections are library holdings normally considered inexhaustible and accounted for like works of art or historical treasures.  They are held for public exhibition, education.  They are protected, cared for, and preserved.  They must be capitalized when the total cost of the collection is equal or greater than $5,000. However, they do not depreciate.


$100,000 or more are capitalized.


$100,000 or more are capitalized.


$50,000 or more are capitalized.
If this real property is included as part of new building construction, then a separate plant fund is not needed.  However, use of the 40401 account code is required.


Must have a value of $100,000 or more to be capitalized.


Infrastructure assets are long-lived capital assets that are part of a network of assets that can have service potential for an extended period, and that are normally stationary.  In order to be capitalized they must have a value of $50,000 or more.


What Special Accounting is Required for Capitalized Projects?

Effective: 01/01/2003
Revised: 01/14/2010

A “plant fund” or funds (8XXXXX) must be established to track capitalization amounts.  The OUS Controller’s Division establishes plant funds in response to a request from the OSU Facilities Services Controller, after approval by the OUS Facilities Division.


Year End Processes for Capitalization

Effective: 01/01/2003
Revised: 12/27/2012

Buildings & Grounds - Improvements and Adjustments in Excess of $5,000

The annual capitalization report must be completed and submitted.  The report must include all Plant Construction and Improvement Funds that had expenditures during the current fiscal year (see FWRFAAC) plus any other expenditures for buildings, improvements other than buildings, infrastructure, land or land improvements activity that qualify for capitalization.  Transactions through period 14 must be included.  Prior year adjustments must be clearly identified.  Funds with zero or negative balances must be reported if they had capitalized account codes (4XXXX) transactions during the year.  Include an explanation for these transactions.

The contents of year-end reports will be used to classify year-to-date (YTD) expenditures through Period 14 and post them to the appropriate subsidiary file for financial statement purposes.  Amounts reported for unfinished (not completed/not accepted) projects at June 30 must be identified as construction in progress (CIP).  These amounts will need to be identified for posting to the appropriate asset in a future year.  Amounts reported as non-capital maintenance and repairs will be utilized in the indirect cost computations.  Data must be reported as whole dollar amounts for each category of expenditure.  OSU Office of Business Affairs prepares the journal vouchers to adjust the appropriate Net Investment in Plant Fund (890000) and Asset Accounts.

  • OSU may report current year Period 14 transactions in the next fiscal year as a prior year adjustment.

  • OUS 05.780 Accounting for Capital Projects is a helpful reference.

  • In addition, year-end reports are prepared for any changes in:

    • Square feet of existing buildings whether by additions, demolitions, or removals.

    • The functional use of buildings so that usage categories maintained in the building master record may be revised.  With regard to the use of buildings, give particular attention to miscellaneous housing properties acquired that may have been converted to offices or similar institutional facilities.

    • Changes in ownership/rededication.

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