How do asset capitalisation rules work?

Asset capitalisation rules in iplicit allow the system to create fixed assets automatically when purchase invoices meet defined criteria. Rather than manually creating each asset record, you configure rules that identify qualifying purchases and either capitalise them immediately or route them for approval. This article explains how these rules work within the Fixed Assets module.

What triggers asset capitalisation in iplicit

Capitalisation rules evaluate purchase invoices against criteria you define. Two matching methods are available:

• Chart of Accounts (COA) code - the rule matches invoices posted to specific nominal codes, such as a capital expenditure account
• Product - the rule matches invoices containing specific products flagged for capitalisation

When a purchase invoice meets the rule criteria, iplicit either creates the asset automatically or flags the invoice for review, depending on how you configure the rule.

Setting a minimum capitalisation threshold

Each capitalisation rule can include a minimum value threshold. Invoices below this amount are excluded from automatic capitalisation, even if they match the COA code or product criteria. This prevents low-value items from being capitalised as fixed assets when they should be expensed.

For example, setting a threshold of £1,000 ensures only purchases at or above that value trigger asset creation.

Automatic capitalisation versus approval routing

Capitalisation rules offer two processing modes:

• Automatic - iplicit creates the fixed asset record immediately when the invoice is posted, with no manual intervention required
• Approval required - iplicit flags the invoice as a capitalisation candidate and routes it for review before the asset is created

Use automatic capitalisation for straightforward, high-confidence scenarios. Use approval routing when finance teams need to review or categorise assets before they are added to the register.