What is Capital Equipment?

Capital equipment is tangible property with a useful life of more than one year and, under SUNY and RF policies, generally has a total cost of $10,000 or more per item. Additional considerations for equipment include:

Costs Included in Equipment: The total cost of the equipment includes:

Contract or invoice cost of the equipment
Freight, import duties, handling, and storage costs
Installation charges

Threshold Application: For purposes of the WolfMart Equipment/Fabricated Asset Indicator, the $10,000 threshold generally applies per individual item. Multiple items under $10,000 each do not need to be marked as capital equipment solely because the requisition total exceeds $10,000. Fabricated assets are an exception; parts of a fabricated asset should generally be marked as equipment even if the individual component is under $10,000.

Categories of Equipment Purchase in WolfMart

There are three "categories" of purchases in WolfMart that can qualify for equipment:

Category	Description	Example	How the $10,000 threshold applies
New equipment asset purchase	A standalone item of tangible property lasting more than one year.	A $25,000 vehicle plus $2,000 shipping charge	Applies per individual item and the cost(s) to place into service.
Fabricated equipment / fabricated asset	One functioning piece of equipment built from multiple parts or components.	Custom research equipment assembled from multiple parts.	Applies to the expected total cost of the completed asset, not to each individual part of component. Components that become part of a fabricated asset should generally be marked Yes, even if the individual parts are less than $10,000
Additions / improvements to existing equipment	An addition or improvement that extends the useful life or increases the capacity of existing equipment.	A new liftgage installed on an existing University vehicle that improves loading capacity/capabilities.	Applies to the addition or improvement and the cost(s) to place into service.

Fabricated Assests

For a fabricated asset, the $10,000 threshold generally applies to the expected total cost of the completed asset, not to each individual part or component. If your department is building equipment from multiple parts and the completed asset is expected to cost $10,000 or more, purchases that become part of the fabricated asset should generally be marked as equipment (“Yes”) in WolfMart, even if the individual part is under $10,000.

Additions / Improvements vs Repairs

An addition or improvement to existing equipment should generally be marked as equipment (“Yes”) when it costs $10,000 or more and extends the useful life or increases the capacity of the existing equipment. Per SUNY policy, improvements to existing equipment that extend useful life or capacity and meet capitalization thresholds are capitalized as a separate asset/component.

Ordinary repairs and maintenance are treated differently and should not be marked as equipment (“Yes”) in WolfMart. Repairs and maintenance keep equipment in normal operating condition but do not extend its useful life or increase capacity. Examples include tire or brake replacement, routine lab equipment calibration, or repair of a broken part with a similar replacement part.

A Note About Software and Subscriptions

Standalone software, subscriptions, SaaS products, and cloud-based services generally should not be marked as capital equipment in WolfMart.

However, if software is included with a piece of capital equipment and is needed for the equipment to work as intended, the overall purchase may still need to be marked “Yes” in WolfMart. If you are unsure, contact the Office of the Controller before submitting the requisition.

Examples

Below are a few common procurement examples:

You Are Buying...	Capital Equipment?	Why
An $11,000 microscope	Yes	Single item over $10,000 with a useful life of more than one year.
A $95,000 projector with $1,000 shipping and installation costs	Yes	Total cost to place the equipment into service is over $10,000
A $4,000 part for research equipment that your lab is fabricating, where the completed equipment is expected to cost $20,000	Yes	The part is a piece/component of a fabricated asset. For fabricated assets, the threshold applies to the expected total cost of the completed equipment, not to each individual part.
A new $12,000 liftgate installed on an existing University vehicle	Yes	An improvement to existing equipment that increases its capacity.
Five pieces of furniture totalling $25,000, with each individual piece under $10,000	No	No single item meets the threshold and the pieces are not being assembled into one fabricated asset.
A $3,000 laptop and associated ccessories	No	Does not meet the threshold (although Property Control or your department may be asked to track this separately).
A replacement part for a routine repair	No	Repairs do not extend the useful life or capacity of the existing equipment.
$12,000 of supplies for your department's office	No	Supplies are generally consumable items used in operations and usually do not have a useful life of more than one year.

Not sure? That's ok.

You are not being asked to make fixed asset accounting decisions. The Office of the Controller makes final determinations. Your selection simply makes sure the right purchases get reviewed by our office. If you are unsure, please contact us before submitting the requisition.

Why Proper Identification Matters

Accurate equipment identification supports the following for the University:

Financial reporting
Property control inventory and tracking
Research Foundation sponsored award reporting and Federal Uniform Guidance (2 CFR Part 200)

Identifying equipment on the requisition, through proper use of the Equipment/Fabricated Asset Indicator in WolfMart, is one of the most effective mechanisms the University has to accurately identify equipment.

Questions? Contact Us

If you have any questions about equipment or how to use the Equipment/Fabricated Asset Indicator, please contact the Office of the Controller.

Sharice Detiege, Assistant Director, Capital Asset, Grant & Cost Accounting
Adam Hadley, Associate Controller

fixed_assets_inquiries@stonybrook.edu

Related Resources

*Materials have not been revised to reflect the updated capitalization threshold for equipment. As of 7/1/2025 the threshold changed from $5,000 to $10,000.