How does Capitalization occur?
Capitalization occurs by organization. Each organization is set up with its own moveable and non-moveable plant fund account numbers. As expenditures occur in the General Ledger these items are capitalized in the appropriate plant fund account number for the organization incurring the expense. The capitalization process also relies on object code sub type mappings to determine which balance sheet object code to use when capitalizing an item. For example, object code 7000 has an object code sub type of CM (capital equipment moveable). CM maps to object code 8610 on the balance sheet.
