Hi Group,
I began testing for a Capital Asset audit and realized that, with our current guidelines, it is hard to determine if items are a valid capitalized item. We have several purchases, mainly related to IT, that are bulk. There are cases where the items purchased individually do not reach the capital threshold. However, since 11 were purchased on one invoice and the invoice total is more than the threshold it gets capitalized. I don't necessarily disagree with this, but it is not addressed in our guidelines and therefore leaves a lot of "gray" area. I have seen guidelines that have a section about bulk purchases. How does your CU handle bulk purchases?
Would anyone be willing to share their guidelines?
Thanks in advance for the feedback,
Samantha
BayPort CU
