Capital vs Noncapital Equipment

Capital Equipment

Capitalization of University property is accomplished through screening of payments made by the UNL Accounting Department. If an item has an acquisition cost of $5,000 or more, and a useful life in excess of one year, it is considered for capitalization.

Items to be capitalized will be added to the departmental inventory showing company center, date purchased, building, room, cost, and purchase order number. All capitalized items receive University identification numbers.

Noncapital Equipment Items

Regardless of the cost, the following items are not capitalized:

  • Blinds, shades, wall-to-wall carpeting, and similar items
  • Software not purchased in conjunction with related hardware
  • Equipment which is permanently built-in or installed
  • Library books, art, and museum object
  • Cubicle walls, shelving, lockers and trophies
  • Repair or replacement parts or components