Fixed asset creation for a lower level WBS elements

Hi Friends,

I have a scenario where in, in a single project client wants to track both Capital and Operational expenditures. Client wants to capitalize all the costs incurred for capital purchases as an asset. Operational expenditures should be settled to cost center.

I have created,

level 1 - Main Project

level 2 - a. Capital Expenditures                                                                                    level 2 - b.Operational Expenditures(all statistical WBS element)

level3 (Two WBS elements-legal entity)-  a. Capital exp-India  b.Capital Exp-USA               level 3 - a. Opex-India      b. Opex-USA

level 4 - a1.capital exp-India-Hardware  a2. capital exp-India - Software                                same for Operational Expenditures

For all Capital purchases,

AUCs will be created automatically for all "level 4" WBS elements.

Level 4 wbs elements are account assigned in PO.

My question is, I want to settle each of these(hardware and Software) costs to separate Fixed assets. should I create completed asset from the level4 wbs elements for each software and hardware WBS elements.

I request an advice from the experts for further action.