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Thread: Capitalise vs Expense

  1. #1
    Full Member
    Join Date
    Mar 2014
    Cape Town
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    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.

  2. #2
    Gold Member
    Join Date
    Feb 2016
    Thanked 199 Times in 178 Posts
    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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