Activity: Defining Item(s) as Capital Software Financial Policy: I-160 Capitalization of Software http://www.indiana.edu/%7Evpcfo/policies/accounting/i-160.html Related Policies: I-150 Capitalization of Moveable Equipment http://www.indiana.edu/%7Evpcfo/policies/accounting/i-150.html Additional Forms: Capital Assets Manual http://www.fms.indiana.edu/cams/Manual/Manual.asp Things to Know: Operating software purchased with a computer package will be capitalized as part of the initial cost of the computer. Computer package is a purchase of the main computer central processing unit and could include a monitor, keyboard, mouse and operating software. Application software is canned programs that offer special functions (i.e. Harvard Graphics, LAN based user packages) and shall be capitalized as a seperate asset if the acquisition value is $5,000.00 or more and has a life greater than one year. For software to be secured as capital, the correct object code must be used on the purchase order and other financial transactions. A list of object codes (income and expense) is available by contacting your campus Chart Manager (List of Chart Managers) or in the FIS Object Code Reference Table.
