University of Illinois System
Policies & Procedures
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12.1.10 Report New Software Over $250,000

Policy Statement

Software is capitalized if purchase or development costs are more than $250,000. Units must notify University Property Accounting and Reporting of software purchases or development so it can be entered into Banner Fixed Assets, capitalized, and depreciated over the life of the item.

Procedure

To report new software over $250,000:

  1. Complete a Software Capitalization Approval Request form. The form contains a series of questions that will determine whether or not the software meets capitalization criteria.
  2. Submit the form.

Forms Used in this Procedure

Software Capitalization Approval Request

Related Policies and Procedures

12.1.9 Determine Capitalization Thresholds

Additional Resources

Importance of Accurate Equipment Coding

Last Updated: August 2, 2021 | Approved: Senior Associate Vice President for Business and Finance | Effective: June 2011