WBS hierarchies are normally structured to segregate capital expenditure (CapEx) and operational expenditure (OpEx) at level 2. Large projects will typically incur both types of costs and the budget for each is tracked separately. OpEx costs are settled monthly to responsible cost centers. CapEx costs are capitalized – initially as assets-under-construction, and on project completion are settled to the delivered fixed asset. This difference in accounting treatment is determined by the settlement profile assigned to the WBS element.