Property Accounting Capital component guide

When a project is under review for capitalization its costs must be reconciled between the costs from the purchase review process & those costs established within the fiscal year ledger. After the costs are reconciled then the total costs must be componentized and the very best way to establish a basis for componentization is to get a hold of the projects AIA (American Institute of Architects) document. This document will breakdown the costs according to the specific tasks of the project and many times there is a budget amount with each line expenditure total.

Now I will assign a SAR (standard asset record) code to each line item and below is a matrix of the general cost category and the SAR I assign to each line. Now as a guide for Service System category items, it should be a cost category that carries communication data, liquid, gas, steam or electric.

AIA Descriptive cost category: Fixed assets SAR code: Book life:
Carpentry 0028 40
Change orders (unspecified in description) Allocate Allocated
Demolition Allocate Allocated
Doors/Frames/Hardware 0088 15
Drywall 0028 40
Electrical 0038 20
Fire protection 0038 20
Flooring 0088 15
General conditions Allocate Allocated
HVAC 0038 20
Mechanical 0038 20
Millwork 0088 15
Painting & Wall covering 0028 40
Permits & fees & bonding Allocate Allocated
Plumbing 0038 20
Ceramic tile 0088 15
VWC (vinyl wall covering) 0028 40
Window treatments 0028 40
Acoustical ceilings 0088 15
Fire protection 0028 40
Overhead & Profit Allocate Allocate
Signage 0088 15

Note: when the SAR code is tagged as 'Allocate' this means is that these costs will be allocated to actual SAR code categories as supporting costs.