Director Infrastructure Capex Accounting

Director, Infrastructure Capex Accounting

When to Use

• Define or update infrastructure capitalization policy (hardware, DC build, cloud prepaids at scale)
• Adjudicate material capex vs OpEx and project accounting treatment
• Govern WIP/CIP through in-service and asset capitalization for builds
• Set useful life, salvage, and impairment standards for compute and facility assets
• Own capex forecast alignment with FP&A and engineering roadmaps
• Prepare board, audit committee, or controller narratives on infrastructure spend
• Design SOX controls over capitalization, disposals, and master data
• Steer external audit on fixed assets, prepaids, and construction projects

When NOT to Use

• Operational close: cloud CUR mapping, depreciation runs → compute-accounting-manager
• ASC 606 revenue and deferred revenue → senior-revenue-accountant
• MW delivery program RAID → senior-data-center-capacity-delivery-manager
• Which sites to fund next → data-center-portfolio-planning-execution-lead
• MEP design and commissioning specs → data-center-design-execution-lead
• Control evidence automation packs → compliance-engineer (partner; director sets policy)
• Infrastructure portfolio, capex envelope, executive narratives → vp-of-infrastructure

Related skills

Core Workflows

1. Capex policy and governance

Thresholds, roles, escalation, policy exceptions.

See `references/capex_policy_governance.md`.

2. WIP/CIP and project capitalization

Construction and hardware projects through in-service.

See `references/wip_cip_capitalization.md`.

3. Capex forecast and executive reporting

Plan vs actual, variance drivers, board pack.

See `references/capex_forecast_reporting.md`.

4. Fixed-asset and prepaid program controls

SOX, audit PBCs, subledger governance.

See `references/fixed_asset_program_controls.md`.

5. Useful life, impairment, and disposals

Policy changes, triggering events, write-offs.

See `references/useful_life_impairment.md`.

6. Cross-functional alignment

Engineering, FP&A, tax, treasury, legal.

See `references/cross_functional_alignment.md`.

Outputs

• Policy memo or accounting manual section for infrastructure capex
• Capitalization decision log — material judgments with approver
• Capex bridge — budget → commitments → WIP → placed in service → depreciation run-rate
• Audit steering brief — open items, estimates, timing
• Board slide — spend, runway, efficiency metrics tied to accounting view

Principles

• Policy before transactions — train deal owners and engineering on thresholds early
• One asset truth — align CMDB/serial data, procurement, and fixed-asset register
• Separate roles — policy owner (director) vs operational accounting (compute-accounting-manager)
• Not tax or legal advice — lease classification, credits, transfer pricing to specialists
• Tie to delivery truth — in-service dates follow rack-ready / go-live, not PO date alone

Capex forecast and executive reporting

Table of contents

1. Forecast structure 2. Plan vs actual bridge 3. Run-rate and depreciation 4. Board narrative

Forecast structure

Align categories with engineering and portfolio:

Forecast in cash, commitment, and P&L views:

• Cash — payments
• Capex — WIP additions and direct asset buys
• Depreciation — forward run-rate from approved builds

Plan vs actual bridge

Monthly or quarterly bridge:

Budget capex
± Scope changes (new racks, deferred hall)
± Price (SKU cost, FX)
± Timing (slip to next quarter)
± Reclass (OpEx vs capex correction)
= Actual capex

Explain timing slips separately from true savings (deferral vs efficiency).

Tie to data-center-compute-supply-efficiency capex avoidance metrics when engineering claims consolidation savings.

Run-rate and depreciation

After major in-service events, update:

• Quarterly depreciation expense forecast
• Prepaid cloud amortization schedule
• Free cash flow impact narrative for FP&A

Show capex-to-depreciation conversion for board: when spend drops, depreciation may still rise.

Board narrative

Keep slides factual:

• Spend vs approved budget and prior guidance
• Major projects: status, in-service date, WIP balance
• Efficiency: utilization or deferred capex (with engineering source)
• Risks: supply chain, slip, impairment watchlist
• Audit / control headline if material

Avoid engineering jargon without accounting translation (MW → $ and asset class).

Capex policy and governance

Table of contents

1. Policy scope 2. Decision rights 3. Exception process 4. Training and intake

Policy scope

Cover explicitly:

Align policy with GAAP/IFRS and company materiality — controller sign-off.

Decision rights

Document pre-approval for capex POs above threshold where ERP allows.

Exception process

Exception request includes:

• Business case and useful life proposed
• Why policy default does not fit
• P&L and balance sheet impact
• Precedent search (prior memos)
• Effective date and duration (one-time vs policy change candidate)

Log exceptions in central register for audit and policy refresh.

Training and intake

• Quarterly sync with procurement, DC delivery, platform engineering
• Capitalization checklist embedded in capex request forms
• Reject or return incomplete requests before month-end surprise
• Partner with data-center-portfolio-planning-execution-lead on what is funded vs how it is capitalized

Cross-functional alignment

Table of contents

1. Stakeholder map 2. Cadence 3. Common conflicts 4. Handoffs

Stakeholder map

Cadence

Common conflicts

Handoffs

• To `compute-accounting-manager`: policy updates, approved memos, close calendar
• From delivery programs: milestone dates, acceptance packs
• To `compliance-engineer`: control changes after process updates
• To `communication-lead`: external messaging only through approved channels

Director escalates material judgments to controller/CFO; does not override GAAP without authority.

Fixed-asset and prepaid program controls

Table of contents

1. Control objectives 2. Key controls 3. Audit PBCs 4. Subledger governance

Control objectives

• Valid capitalization (existence, ownership, correct period)
• Complete recording of disposals and transfers
• Accurate depreciation and amortization
• Restricted access to asset master and useful life changes

Partner with compliance-engineer for control documentation and evidence design.

Key controls

Investigate breaks between CMDB/asset tag and fixed-asset register quarterly.

Audit PBCs

Prepare rolling PBC index:

• Fixed-asset rollforward (cost, accum depr, additions, disposals)
• Top additions sample with invoices and memos
• Disposals and retirements
• Prepaid cloud rollforward
• WIP listing and aging
• Policy and exception log
• SOX walkthrough narratives

Assign DRI per section; compute-accounting-manager prepares detail, director reviews judgments.

Subledger governance

• Asset categories and GL mapping — change control
• Useful lives — annual review with engineering obsolescence input
• Project codes — aligned to delivery programs; no orphan WIP
• Segregation — who can create assets vs post depreciation

Escalate ERP limitations (manual spreadsheets) with remediation roadmap to controller.

Useful life, impairment, and disposals

Table of contents

1. Useful life standards 2. Review triggers 3. Impairment 4. Disposals and scrap

Useful life standards

Publish table by asset class:

Salvage — often zero for tech; document assumption.

Changes require prospective depreciation adjustment and disclosure if material.

Review triggers

Annual review when:

• New generation hardware obsoletes prior SKUs
• Major consolidation or cloud shift off-prem
• Extended idle inventory per data-center-compute-supply-efficiency
• Acquisition or restructuring

Compare remaining book value to secondary market or replacement cost where indicators exist.

Impairment

Indicators:

• Assets idle beyond policy with no redeploy plan
• Physical damage or flood/fire
• Program cancel — WIP or assets without use
• Significant technology change (e.g., GPU architecture shift)

Process:

1. Engineering and ops confirm facts 2. Quantify undiscounted cash flows if required by standard 3. Record impairment with controller approval 4. Update forecast and board risk register

Disposals and scrap

• Sale — gain/loss; remove serial from CMDB
• Trade-in — allocate consideration to disposal
• Scrap — write off remaining NBV; certificate of destruction if policy requires

Prevent ghost assets — disposal must follow physical decommission from field-services-engineer or ops ticket.

WIP/CIP and project capitalization

Table of contents

1. Project types 2. WIP lifecycle 3. In-service criteria 4. Closeout and reconciliation

Project types

Separate project codes in ERP tied to senior-data-center-capacity-delivery-manager milestones.

WIP lifecycle

1. Budget approved — FP&A project ID; capex in forecast 2. Commitment — PO issued; optional commitment accounting 3. Spend accumulation — invoices and accruals to WIP 4. Substantially complete — engineering sign-off 5. In service — transfer WIP → fixed asset; start depreciation 6. Close project — zero WIP balance; post-mortem variance

Monthly WIP aging review: flag projects open > policy threshold.

In-service criteria

Require documented evidence:

Not sufficient alone: goods received, rack mounted without power-on, or PO closed.

Coordinate with field-services-engineer acceptance records for serials and dates.

Closeout and reconciliation

At project close:

• [ ] All invoices booked to WIP or corrected
• [ ] Accruals reversed or converted
• [ ] Asset register populated with serials and locations
• [ ] Depreciation run scheduled from in-service month
• [ ] Forecast updated (capex → depreciation run-rate)

Capitalize only eligible costs; reclassify ineligible spend to OpEx with memo.