Suhas:
First, as a point of reference, 14.4 has Cost Type as an attribute in the Transaction Entry and XOG. That said, you need a solution for the version that you are on now. Cost Type is an attribute on the Task, and by GAAP accounting standards, Capital and Expense are determined by the activity that they are related to in most projects. So - if you set up your Tasks, or at least Phases with the correct Cost Type, and the transaction entry goes to a Task that has the correct Cost Type, then you will be able to associate the transaction to that Cost Type. In other words, a transaction that has a Capital Charge Code should be coming in to a Task that has a Cost Type of Capital. An Expense transaction will go to a different Task.
John