How do asset capitalisation rules work in iplicit?

This article covers how asset capitalisation rules work within the Fixed Assets module in iplicit. Capitalisation rules define when a purchase invoice should trigger the creation of a fixed asset - either automatically or by routing it for review. Configuring these rules correctly is what allows iplicit to build your asset register from your purchase invoices without manual data entry.

What a capitalisation rule does

When a purchase invoice is posted in iplicit, the system checks whether it matches any active capitalisation rules. If it does, iplicit either creates the fixed asset record immediately or flags the invoice as a capitalisation candidate for review.

Think of a capitalisation rule as a filter: you define the criteria, and iplicit does the matching.

How iplicit matches invoices to rules

Two matching methods are available in the Fixed Assets module:

• Chart of Accounts (COA) code - the rule matches invoices posted to specific nominal accounts, such as a capital expenditure account
• Product - the rule matches invoices containing specific products that have been flagged for capitalisation in the product settings.

You can use either method or both, depending on how your purchase invoices are structured.

Setting a minimum capitalisation threshold

Each capitalisation rule can include a minimum value. Invoices below this amount are excluded from capitalisation, even if they match the COA code or product criteria.

This prevents low-value items from being added to the asset register when they should simply be expensed. For example, a threshold of £500 means only purchases at or above that value will trigger asset creation.

Automatic capitalisation versus approval routing

Each rule offers two processing modes:

• Automatic capitalisation - iplicit creates the asset record as soon as the qualifying invoice is posted, with no further action needed
• Approval routing - iplicit flags the invoice as a capitalisation candidate and holds it for review before the asset is created.

Use automatic capitalisation for straightforward purchases where the asset category and details are predictable. Use approval routing when your finance team needs to review, categorise, or assign asset details before the record goes into the register.

The rule start date matters

Each capitalisation rule has a start date. iplicit only processes invoices that fall on or after this date against the rule. If assets are appearing as pending or failing to capitalise, check that the rule's start date is set to a date earlier than the oldest asset you need to process. This is one of the most common causes of assets getting stuck. See Why is my fixed asset stuck in pending for more detail.

Auto-capitalisation automation

For automatic capitalisation to run without manual intervention, the auto-capitalisation automation must be active. Even if it was not running at the time the invoice was posted, you can run it manually afterwards to pick up any assets that were missed. Navigate to the Auto Capitalisation Automation to run or schedule this automation.