Capitalized Repairs
Find repair and maintenance spend capitalised into fixed assets, which moves an expense off the income statement.
- General ledger alone
What it checks
- Capitalise: the cost creates or replaces a separately identifiable component with future benefit.
- Expense: day-to-day servicing, inspection and routine maintenance, whatever the amount.
- A component replacement capitalises the new part and derecognises the old one.
- Both directions: repairs expense is scanned for capitalisable items too.
How the result is read
Capitalising a repair improves the balance sheet and that period’s profit at once, and the reverse holds for an entity managing earnings downward — which is why the repairs accounts are scanned as well as the asset accounts. Keyword matching finds candidates, never conclusions: the ruling comes from the recognition criteria on the invoice.
The worksheet, on the demo engagement
CapEx vs. OpEx, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per candidate posting, both directions.
Both directions are here: repair language inside an asset group, and asset language inside an expense group. The grid says which.
- CAPEX entries scanned
- 34
- Keyword hits
- 4
- Potential misclassification
- 700
- CAPEX confirmed OK
- 30
CapEx vs OpEx scan (IAS 16.7/16.13). Keyword hits are candidates, not conclusions: the conveyor motor is a component replacement and is correctly capitalised, while the three items totalling 700 require the underlying invoices before a ruling. Amounts agree to the additions in the FA rollforward.
Result grid5 rows
| PO / JE ref | Date | Capitalized to | Amount | Line description | Keyword hit |
|---|---|---|---|---|---|
| PO-8821 · JE-FA-122 | 2024-09-12 | Equipment | 380 | Annual maintenance service — 3-yr contract | Maintenance |
| PO-8904 · JE-FA-128 | 2024-11-05 | Equipment | 180 | Repair and overhaul — compressor unit | Repair |
| PO-9011 · JE-FA-140 | 2024-12-01 | Equipment | 140 | Routine inspection and service certificate | Service |
| PO-7812 · JE-FA-101 | 2024-06-14 | Equipment | 1,100 | Production line upgrade — new bay | — |
| PO-7920 · JE-FA-115 | 2024-07-22 | Equipment | 900 | Replacement of conveyor motor (major component) | — |
In the application
Capitalized Repairs is filed under Fixed assets & leases, index letter F. "Run all analyses" runs it with every other analysis the ledger can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under F, beside an index of the source files with their SHA-256 fingerprints.
Also listed in the application as CapEx vs. OpEx
.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required