Equipment will not be created both as Material as well as Asset.
It should be only one. So, you will not or you can not have option to settle the cost material as well as asset for the same equipment.
So, there won't be any duplication. Finance team with operation team will decide whether to create Asset for the equipment or Material for equipment at the initial stage.
Once after that, cost will be booked in any of that only.
Capitalization term is not only for Asset, this is applicable for Material as well. Capitalization means not considering the maintenance expense as expense (settling to cost center) but considering to book the cost to respective cost carrying object (material or asset).
Even refurbishment can be called as Capitalization Process as it hits the Balance sheet account.
Conclusion:
- Capitalization is to settle the cost to some Balance sheet account (through Asset or Material)
- Expense is to keep the cost in P & L account (by settling to only cost center)