Capital Expenses less than $5k

Hello,

We have a requirement that we would capitalize expenses in a Project only if they are more than $5k. Also, we cannot have any CIP balance at the end of the financial year.

So, in case, for some projects, expenses are less than $5k, what is the best way to deal with them? Some options from our side -

1. Leave the expenditures in CIP and do not create an asset in Projects. Additional charges may come through that will increase the overall expenditures to more than $5K and an asset can be created when the total expenditures total more than $5K. If the project status is closed and the expenditures in CIP remain less than $5K, a miscellaneous transaction can be made to transfer the expenditures to a non-capital project, assuming the expenditures belong in a non-capital project.