University of Connecticut
Capitalization Thresholds
| Type of Purchase |
Capitalization Threshold |
Object Codes* |
| Equipment | $5,000 | 8202, 8205, 8210, 8215, 8217, 8220, 8222, 8293 |
| Financed equipment purchases | $5,000 | 8280 |
| Motor Vehicles | $5,000 | 8230, 8235, 8240 |
| Artwork and Collections | $5,000 | 8260 |
| Computer Software License (useful life of 3 or more years) | $5,000 | 8245, 8250 |
| Implementation/installation costs for software** | $5,000 when combined with software license costs above | 8248, 8253 |
| Long-Term Software Commitments (Total payments in contract are over $100K) | $100,000 | 8247 |
| Other Intangible Assets | $5,000 | 8257 |
| Land | No minimum | 8400 |
| Attached Equipment, Buildings | $100,000 | 8270, 8271, 8272, 8273 |
| Attached Equipment, Nonstructural*** | $100,000 | 8275, 8276, 8277, 8278 |
| New construction, renovations, improvements to buildings/nonstructural assets | $100,000 | Same as Attached Equipment if not in a Construction Project Account; Capital Project object codes if within a Construction Project Account |
*See https://kb.uconn.edu/space/FPB/10933731671/KFS+Expense+Object+Code+Descriptions for details
**Major software implementation projects with a budget of over $1 million may require the capitalization of internal labor. Contact the Manager of Inventory Control and Capitalization for more information.
***Nonstructural assets are infrastructure and land improvements. Examples include roads, parking lots, sidewalks, underground utilities, outdoor electrical installations, outdoor athletic fields, landscaping, fences, etc.
rev. 5/2023