Capital Threshold - Expense vs Physical

Our understanding is the captial threshold rule should expense any item that is not capitalized.

If we create a threshold rule, for a group of items ($5k)

Checked Expense 500

Checked Physical 5000

In the above scenario if an item is created with a cost of $400 it will not create an asset (physical or financial)

In the above scenario if an item is created with a cost of $4000 it will create a physical only asset and not capitalize.

However, if we run the Clearing Reconciliation (AM_CLEREC) I would expect a reversing entry for both the $400 and the $4000 asset because both were entered to the clearing account on the requisition and would need to be reversed.