What is Capital Purchases?

Capital purchases, also known as capital expenditure or capex, are funds used by a business to make a substantial investment in long-term fixed assets. This can include purchasing machinery and equipment, land, buildings or other infrastructure, and furniture and fixtures. These assets have a useful life of more than one accounting period and can therefore appear on the balance sheet in multiple periods.

Learn more about the CAPEX procurement and sourcing solutions offered by GEP.


Related Terms

What is Calculate Direct Cost?What is Capital Expenditure?What is Catalog?What is Category?What is Category Management?