The Capitalization Criteria program is used to change the capitalization criteria, dollar amount and/or life limit, for districts that have their GAAP flag checked.  Any changes made will be retroactive to the beginning of the fiscal year selected.  What does selecting the fiscal year do exactly?  Once completed, the capitalization criteria stored under Core>Fiscal Years for that fiscal year will be updated to reflect the new dollar amount and/or life limit. A detailed report, sorted by tag number, will be generated including the fund, function and asset class, capitalization status and the old and new beginning balance amounts for each item that was changed.

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Field Definitions:

• Select Fiscal Year: Select a fiscal year.  The fiscal year drop-down only includes fiscal years stored under Core>Fiscal Years.  What happens if you have FY 2020 and FY2021 under Core>Fiscal Years.  Can you go back and change the cap criteria for FY2021?  What happens to Fiscal year 2022?
• Capitalization Amount: The selected year's capitalization amount will be displayed.  Please overwrite it to change it to a new figure.
• Life Limit: The selected year's life limit will be displayed.  Please overwrite it to change the life limit.
• Projection Only: A projection report is selected by default and will be created showing the tag number, fund, function, and asset class of items that will be affected by the change. It is strongly recommended that you run a projection prior to updating the information.  Once you are ready to update the live data, uncheck the projection only box and submit. Inactive or old items will not be updated. Disposed of items will be updated only if they were disposed of in the fiscal year selected.

More Information about Capitalization Criteria

If your district does not have the GAAP box checked in Core>Configuration, the capitalization criteria can be changed through the EISMNT program using the DATSCN option???

Changes to Beginning Balances

Changing the capitalization criteria will generally affect the beginning balances on the Schedule of Change in Fixed Assets Report for the year selected.

If the criteria is lowered so that items not originally capitalized at the beginning of the year are now capitalized, the program will modify the beginning balance information to make it appear as if these items were capitalized at the beginning of the year. This means that the beginning balances for the change schedule will be larger than the ending balances of the change schedule for the prior year. The changes made in Capitalization Criteria program will be audited but it is recommended district document the changes by printing and saving the generated report.

If the criteria is raised so that items originally capitalized at the beginning of the year are no longer capitalized, the program will modify the beginning balance information to make it appear as if these items were not capitalized at the beginning of the year. This means that the beginning balances for the change schedule will be smaller than the ending balances of the change schedule for the prior year. The changes made in this program will be audited but it is recommended the district document the changes by printing and saving the generated report.