Capital expenditure budget (CapEx)
• Capital expenditure (CapEx) budgets are expenses that create future benefits. For example, you can assign CapEx budgets for buying equipment, buildings, acquiring intellectual property assets like patents etc.
• A capital expenditure is incurred when a business spends money either to buy fixed assets or add to the value of an existing asset. The life of such budgets can extend beyond a tax year.
• Capital project related budgets can be OpEx or CapEx.
• CapEx budgets are not related to a financial year.
 | The decision to choose CapEx/OpEx for a capital project has to be made when defining the project. |