---
title: Define a capitalization policy
description: Create fixed asset shells automatically during purchase order creation, by defining a capitalization policy.
locale: en-US
canonical_url: https://www.servicenow.com/docs/r/australia/source-to-pay-operations/sourcing-and-procurement-operations/define-capitalization-policy.html
release: australia
product: Sourcing and Procurement Operations
classification: sourcing-and-procurement-operations
topic_type: task
last_updated: "2026-03-12"
reading_time_minutes: 1
breadcrumb: [Sourcing and Purchasing Automation, Explore, Sourcing and Procurement Operations, Finance and Supply Chain]
---

# Define a capitalization policy

Create fixed asset shells automatically during purchase order creation, by defining a capitalization policy.

## Before you begin

Role required: sn\_shop.procurement\_administrator

## About this task

You can define a capitalization policy from the Sourcing and Purchasing Automation module.

## Procedure

1.  Navigate to **All** > **Sourcing and Purchasing Automation** > **Administration** > **Capitalization Policies**.

2.  Select **New**.

3.  On the form, fill in the fields.

    \[Omitted image "create\_capitalization\_policy.png"\] Alt text: Capitalization policy.

    |Field|Description|
    |-----|-----------|
    |Name|The display name of the capitalization policy.|
    |Owned by|The user responsible for managing this fixed asset policy.|
    |Rank|Determines the order in which a capitalization policy is processed if multiple policies are satisfied. Policies with lower ranks are honored and processed first.|
    |Created|The date when this fixed asset policy is created.|
    |Active|Option to decide if this policy can be used to create fixed assets.|
    |Capitalize assets if|Conditions that determine the creation of a fixed asset.|

4.  Select **Submit**.


**Parent Topic:**[Sourcing and Purchasing Automation](https://raw.githubusercontent.com/ServiceNow/ServiceNowDocs/australia/markdown/australia/source-to-pay-operations/sourcing-and-procurement-operations/purchase-experience-workflow.md)