Hardware Capitalization Schedule



The Capital hardware tracking template is designed to help you track the financial implications of the computer hardware and software that your organization purchases.  There are two spreadsheets to track the assets separately and a summary sheet to reflect the total purchases of hardware and software assets.

Read on for a description of the variables and other information this template will help you manage:

Depreciation Years – Number of years your accounting department has established to depreciate the equipment. This is typically governed by GAAP and set at 5 years.

Mininimal Hardware Price – Typically, only equipment that is over a certain purchase price is capitalized.   This figure is set by your accounting department; common thresholds are $500 or $1000.  Only equipment over this purchase price should be entered into this spreadsheet.

Equipment Description – This is text describing the equipment purchased.

Vendor – This is the vendor from whom you purchased the product.

Asset Tag – Some companies require that you tag all assets with a unique number so that they can be tracked in a separate system.   If your company does this, enter the asset tag in ths column.  Otherwise you can leave the column blank.

Unit Amount – This is the unit price of the asset, excluding taxes, maintenance and any potentail associated maintenance of the products.

Quantity – This is the number of units you purchased.

Extended Purchase Price – This is the total price of the equipment you purchased

Date Purchased – This is the date the hardware was purchased.

Remaining Asset Life – This column calculates the remaining number of months that the hardware asset will be tracked in accounting.

Remaining Asset Value – This is the remaining dollar value of the hardware asset as it is tracked in the accounting systems.  Essentially, this number represents the dollar value that accounting would have to write off if you need to dispose of the asset.   Accounting would have to record the write-off as an expense in the income statement.

Annual Maintenace – This is the amount that you pay for maintenance of the equipment.

Maintenance Term – Maintenance term is the length the maintenance contract is for.  Typically, this is twelve months; however, you may choose to purchase extended contracts at a discount

Monthly Maintenance – This the calculated monthly maintenance expense that should go on the income statement for maintenance expense for the hardware.  Typically, they will enter the total amount for all software.

Maintenance Renewal Date – This is the date that the contract will expire.