An organization creates a capital project when they want to replace their assets or expand their inventory. Each capital project is composed of one or more building blocks, referred to as Activity Line Items (ALIs), and is associated with one or more fiscal years. A Capital Project generally falls into one of two categories:
- Projects that use policy information to replace existing assets to keep your assets in a state of good repair. These are known as SOGR projects.
- Projects that acquire new assets that enable you to provide new or expanded services or accomplish new business functions.
TransAM makes it easy to create both types of projects using the following tools:
- SOGR Capital Project Analyzer: TransAM evaluates your organization's inventory and automatically generates a set of replacement capital projects which are added to the capital needs list.
- New Capital Project: Manually create a replacement, expansion, or improvement project. You select the project type and scope which determines the projects work.