Capital Equipment Threshold Increasing to $10,000 on July 1

A change is coming

Beginning July 1, 2026, the University will increase the capital equipment dollar threshold from $5,000 to $10,000. The change aligns UVA policy with federal guidance, creates greater consistency across regulatory requirements, and helps streamline accounting, reporting, and compliance practices.

What’s Changing?

Equipment purchases must now meet a $10,000 threshold to qualify as capital equipment. Other elements of the capital equipment definition remain unchanged.

For most departments, the primary impact will be how equipment purchases are categorized in Workday. Beginning July 1, requisitions submitted on or after that date should use a capital spend category only when the updated requirements are met. Equipment purchases below $10,000 will no longer be classified as capital equipment.

Key Dates

• Through June 30, 2026: Continue following the current $5,000 capital equipment threshold.
• Beginning July 1, 2026: Apply the new $10,000 threshold when submitting requisitions and selecting spend categories.

What About Existing Purchases?

The change applies prospectively and will not affect existing assets. Assets currently in inventory will continue to be depreciated according to their original schedules and will remain subject to existing inventory requirements until fully depreciated.

UVAFinance will review open and in-progress purchase orders that span the transition period. Any necessary accounting updates or change orders will be handled centrally by the Business Asset team, minimizing the impact on departments across Grounds.

Please Note

UVA Health System follows its own fixed asset policy and is not impacted by this change.

Questions about the updated threshold or how it may affect a specific purchase can be directed to Ask Finance.

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