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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Capital Asset Accounting
Reclassifying Expenditures to Capital Assets

If any expenditure related to capital projects needs to be capitalized at fiscal year-end (for example, salaries and wages associated with construction projects or internally developed software costs), process adjusting journal entries to reclassify expenditures to capital assets in the general ledger using the following T-codes.

Business-Type Activities (Fund Type 05) and
Component Units (Fund Type 15)

The GL account number used corresponds with the asset.

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Reduce the Other Expenditure Amounts Recorded
(1) 5 U 0832CY XXX 633 CY 99999 XXXX $ XX.XX   XXXX 9999
To Record Amounts in Capital Assets
(2) 5 U 0832CY XXX 644 CY 99999 N/A $ XX.XX   XXXX XXXX

Accounting effect of above entries:

Debit Credit
(1) To Reduce the Other Expenditure Amounts Recorded    
  9999 System Clearing $ XX.XX  
  5600 GAAP Expenditure Offset   $ XX.XX
(2) To Record Amounts in Capital Assets    
  XXXX General Ledger Account for Asset $ XX.XX  
  9999 System Clearing   $ XX.XX

Governmental Activities – Basis Conversion (Fund Type 11)

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Increase Capital Outlay Expenditure in Governmental Funds
(1) 5 U 0832CY XXX 632 CY 99999 XXXX* $ XX.XX   XXXX 9999
To Reduce the Other Expenditure Accounts Used in Governmental Funds
(2) 5 U 0832CY XXX 633 CY 99999 XXXX $ XX.XX   XXXX 9999
To Record the Capital Asset Amount in BC (FT11)
(3) 5 U 0832CY XXX 513 CY 99999 XXXX* $ XX.XX   XXXX XXXX
–OR–
(3) 5 U 0832CY XXX 534 CY 99999 N/A $ XX.XX   XXXX XXXX
To Remove Amounts in Capital Outlays in BC (FT11)
(4) 5 U 0832CY XXX 512 CY 99999 XXXX* $ XX.XX R XXXX 9992

Accounting effect of above entries:

Debit Credit
*Use the capital outlay COBJ.
(1) To Increase Capital Outlay Expenditure in Governmental Funds    
  5600 GAAP Expenditure Offset $ XX.XX  
  9999 System Clearing   $ XX.XX
(2) To Reduce the Other Expenditure Accounts Used in Governmental Funds    
  9999 System Clearing $ XX.XX  
  5600 GAAP Expenditure Offset   $ XX.XX
(3) To Record the Capital Asset Amount in BC (FT11)    
  XXXX General Ledger account for asset $ XX.XX  
  5650 BC Expenditure Control   $ XX.XX
–OR–
(3) To Record the Capital Asset Amount in BC (FT11)    
  XXXX General Ledger account for asset $ XX.XX  
  9992 BC System Clearing   $ XX.XX
(4) To Remove Amounts in Capital Outlays in BC (FT11)    
  9992 BC System Clearing $ XX.XX  
  5650 BC Expenditure Control   $ XX.XX

Verify that capital outlay activity in governmental funds and basis conversion funds net to zero at the GAAP source/object level using the DR206 — Review Govt-Wide Basis Conversion report located in the FMQuery–SIRS AFR Desk Review menu.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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