Capitilising computer expendiure help needed

System

Hi

Please could I have some advice please?!
Our accounting policy is to capitlise items costing over £250. We have recently had some new monitors, memory upgrades and 1 new PC unit and all this is included in 2 invoices from our supplier valued at £1270 and £695.

Invoice 1 - Labour (installing) £ 300
PC Unit £ 410
Monitors, mice, keyboards £ 560
= £1270

Invoice 2 - Labour (installing) £ 150
Printer £ 260
Monitors, paperport £ 285
= £ 695
The only items costing over £250 are the PC Unit and Printer, all other items are max £100.
Should I capitilise the whole value of both as system upgrade, or just the 2 items? Its just that last year when I capitilised some tools costing around the £250 mark the accountant who prepares our final accounts said that he preferred not to capitilise items (!?) Could I put the whole lot through revenue expenditure? What would you do?

Thanks very much
Zoe

System

Re:Capitilising computer expendiure help needed

If the company policy is to capitalise items over £250, then how come the accountant prefers not to capitalise items?

With a company policy in place, you should capitalise the items over £250 for certain. I would generally capitalise the other physical items that are shown on one invoice if they total over £250 but not the labour and delivery charges.

I would recommend asking whoever it is that told you the company policy on capitalisation and also mention the accountant's comment to that person too.