Asset Lifecycle Management - PSFT (MOSC)

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Capitalization threshold by business unit?

edited Nov 30, 2017 3:30PM in Asset Lifecycle Management - PSFT (MOSC) 9 commentsAnswered ✓

Hello,

We are in the process of implementing Asset Lifecycle Management, version 9.2, tools version 8.54. We want to use capitalization thresholds, however, the thresholds vary by business unit. For example, our business unit in Indiana has to capitalize any asset of $500. In Connecticut, they must capitalize anything over $2500. Another business unit has a threshold of $1000, and in another, there are no depreciable assets at all. All the other business units will comply with the policy that only assets over $5000 will be capitalize.

In researching the capitalization thresholds, I see that we can set limits based on book or profile, but not by business unit. How do I accomplish what we need to do? Do I need to set up multiple local books, for the various thresholds? Will these amounts roll up into the main corporate book, to be reflected on the organization balance sheet?

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