Capitalise vs Expense

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  • Simbonile
    Full Member
    • Mar 2014
    • 38

    #1

    [Question] Capitalise vs Expense

    Good day

    I have an invoice where a contractor is doing after hours maintenance on a device they have installed and this is still under guarantee. The description/ details on the invoices reads, "general response and time related obligation" and the amount billed is R11 000. Do I capitalised this amount or should I expense it and classify it as repairs and maintenance?

    Thank you for assisting me in this regard.
  • Andromeda
    Gold Member

    • Feb 2016
    • 734

    #2
    Just to satisfy my curiosity; if it is still under guarantee why is an invoice being rendered?

    But any way, unless the device is changed / improved it is not capital.

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