Capital Cost vs Operating Cost: Understanding Capital Expenditure (CapEx) Request Forms

This article was first published in February 2018 and was updated in November 2024.

A Capital Expenditure Request Form is a formal document used by organizations to request funding for specific projects or purchases involving capital expenditures. These expenditures, often referred to as CapEx, are funds allocated to acquire, upgrade, or maintain physical assets such as buildings, equipment, or technology. These assets are crucial for sustaining current operations and driving future growth. By using a standardized request form, organizations can ensure that all necessary information is captured accurately, facilitating a smoother approval process and better financial planning.

Definition and Importance of CapEx

Capital expenditure is a fundamental concept in accounting and financial management. It represents a significant investment in a company’s future, enabling it to enter new markets, launch innovative products, enhance operational efficiency, or maintain a competitive edge through technological advancements. Effective management of capital expenditures is vital for a company’s long-term success and sustainability, as it ensures that resources are allocated strategically to support growth and development.

Purpose of a Capital Expenditure Request Form

The primary purpose of a Capital Expenditure Request Form is to provide a structured approach to requesting funding for capital projects. This form ensures that all necessary information is captured, including project details, financial analysis, and strategic alignment, to facilitate informed decision-making. By using a standardized request form, organizations can streamline their capital expenditure process, improve transparency, and enhance accountability. This structured approach helps in making well-informed investment decisions that align with the organization’s strategic goals and support long-term growth.

Creating and Filling Out a Capital Expenditure Request Form

Creating and filling out a Capital Expenditure Request Form requires careful consideration of several essential elements. These elements ensure that the request is comprehensive, well-structured, and aligned with the organization’s strategic objectives. A well-prepared request form not only facilitates the approval process but also ensures that the project is thoroughly evaluated and justified.

Essential Elements of a CapEx Request Form

1. Project Details: Provide a clear description of the project, including its objectives, scope, and timelines. This section should outline what the project aims to achieve and the key milestones.

2. Financial Analysis: Include a detailed financial analysis of the project, covering costs, benefits, and return on investment (ROI) calculations. This helps in assessing the financial viability and potential impact of the project.

3. Strategic Alignment: Explain how the project aligns with the organization’s strategic objectives and goals. This ensures that the project supports the broader mission and vision of the company.

4. Contact Details: List the contact information of the project sponsor and other relevant stakeholders. This provides a point of reference for any queries or additional information required during the approval process.

5. Approval Process: Outline the approval process, including the required signatures and authorizations. This section should detail the steps needed to obtain the necessary approvals.

6. Operating Expenses: Estimate the ongoing operating expenses associated with the project. This helps in understanding the long-term financial commitment required.

7. CapEx Management: Describe how the project will be managed and monitored to ensure effective use of capital expenditures. This includes outlining the management structure, reporting mechanisms, and performance metrics.

By including these essential elements, a Capital Expenditure Request Form provides a comprehensive framework for requesting funding for capital projects. This helps to ensure that organizations make informed investment decisions that align with their strategic objectives and support long-term growth and sustainability.

Capture and Route CapEx Requests for Approval

Using capital expenditure request forms to ensure compliant financial information is captured can significantly reduce errors and increase approval cycles. However, capturing information in Excel templates, paper forms, or other manual means can drain most organizations’ time and resources , especially if the CapEx request volume is high.

Using Nutrient Workflow’s Workflow Management software, our clients have significantly improved Capital Expenditure (CapEx) request management processes within their organizations, allowing them to process online approvals and routing and reducing the total approval time by up to 30%.

In addition, finance executives can track CapEx requests and capital spending patterns better because all request data is captured consistently in a central location and fully auditable and exportable to outside reporting systems.

How Baylor University and British Petroleum use Nutrient Workflow for capital expenditure forms and workflow.

CapEx Form Example

CapEx Form Example

Organizations use Nutrient Workflow to streamline their capital expenditure (CapEx) processes. For example, a company might use the platform to automate the approval of new equipment purchases, ensuring that all necessary documentation is completed and reviewed by the appropriate stakeholders. This not only speeds up the process but also reduces the risk of errors and omissions.

Project managers play a crucial role in coordinating these projects and securing the necessary funding.

Capture the Right Data Consistently, then Route It

Nutrient Workflow goes beyond forms, providing one of the most sophisticated routing workflow engines available. Mirror your organization’s policies and business rules to ensure compliance. Use complex approval matrices to route your CapEx forms to the right people or chain of approvers. 

Nutrient Workflow protects your data using industry best practices and certifications. Integrate your data with ERPs, CRMs, Accounting, and more to maintain your single source of truth.

Automate your capital expenditure processes to improve:

Productivity/Efficiency

• Reduce expenditure request, review, and approval time

• Streamline and standardize requests across multiple divisions

• Review and approve requests from mobile devices

• Attach and store supporting financial documentation

Compliance

• Eliminate error-prone manual systems

• Provide a clear audit trail for internal and external auditing

• Establish multi-tiered process definitions to provide security for sensitive data

• Control access levels to ensure privacy

Reporting and Visibility

• Compare planned vs. actual spend

• Report on the efficiency of the process overall or for individual requests

• Provide a transparent view of the process and current status

• Identify CapEx approval bottlenecks and take corrective action

Integration

• Integration with existing financials in existing ERP systems

• Push or pull data between systems to populate dropdown lists and other form fields

• Embed CapEx forms and tracking into existing intranets or Websites

We have a template for that! Get a headstart on automating your CapEx Process with our CapEx process template. Just import the template, customize, and launch your new process.

Check Out the Template

“Our CEO approved his first CapEx request from his mobile device.” Ken Richardson, PCI Pharma Services

Contact us for a free demonstration of how Nutrient Workflow can streamline your CapEx Request process and provide actionable analytics. MoreCapEx examples .

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