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Equipment Addition Procedures

Equipment is acquired by the University in a variety of ways including purchases, donations, and transfers into the University from other institutions.  Only equipment costing $5,000 or more with a useful life of one year or more is considered capital equipment and therefore tagged and tracked by Accounting Services in the asset management system.  Please see the section on non-capital equipment (internal link) for information on setting up a tracking system for equipment costing less than $5,000.

Purchases

The Property Accountant catalogs new equipment purchases each month based on the information provided in a supply chain report and by the requester in the requisition header comments or on the Capital Equipment Purchases Form (link to form). The supply chain report displays paid vouchers for purchases that used a capital equipment account code ONLY. Other information contained in the report includes purchase order number, PO line item descriptions, shipping location and accounting information.  The Capital Equipment Purchases Form (link to form – new form included in email) includes information such as custodian, location (building name and room number), and what kind of purchase was made (new, trade-in, replacement). Occasionally, the Property Accountant will contact the department for additional information needed to properly record the new purchase into the asset management system.

For additional information on purchasing capital equipment, please see the charts below (also discussed in the Project Café job aid Create a Requisition for a Purchase of Capital Equipment (soon to be posted on Project Café website).

Capital and Non-Capital Accounts for Equipment Purchases

It is important to make sure that you are selecting the correct expense account when purchasing equipment.  Remember, items costing $5,000 and above should be coded to a capital equipment account and items costing less than $5,000 should be coded to a non-capital equipment account. In order to determine the proper account to use for equipment purchases, refer to the Equipment Expense Account chart below:

Equipment Description

Non-Capital Accounts

Capital Accounts

Office Equipment

77010

77550

Scientific Instruments

77020

77560

Computers

77030

77570

Fixed Equipment

-

75840

Furniture

75844

75841

Movable Equipment

75844

75842

Capital Equipment

-

75843

NTG Telephone Equipment

77060

77515

AV Equipment

77050

77545

Government/Sponsor Titled Equipment

77071

77505

Music Instruments

77040

77580

Other Equipment

-

77599

Item Category for Equipment Purchases

Requestors need to also make sure that when purchasing capital equipment, the correct item category is selected on the “Add Items and Services” page. Capital equipment item categories always end with the word “Asset”. Below is a list of the categories that should be used for capital equipment purchases:

Artwork Asset (not capitalizable)            Furniture Classroom Asset         Office Equipment Asset
Athletic Equipment Asset                       Furniture Dorm Asset                 Scientific Equipment Asset
Audio-Visual Equipment Asset    Furniture Office Asset                Shelving, Seating, and Lights Asset
Computer Equipment Asset       HVAC Asset                              Shop Equipment Asset
Computer Hardware Asset         Laboratory Equipment Asset      Telecom Equip Asset
Elevator Building Supp Asset    Laundry Service Equip Asset     Vehicles Asset
Food Service Equipment Asset  Maintenance Equipment Asset
Furniture Asset                          Musical Instruments Asset

Donations

When a unit of the University receives a donated piece of capital equipment the Office of Alumni Relations & Development (ext. 7-2003) should be notified so that the equipment will be properly valued and a University gift receipt issued. Gift and Record Services will issue a gift receipt to the donor and also prepare a gifts-in-kind transmittal form providing necessary information for the Property Accountant to enter the donated equipment into the inventory system.

Transfers into the University from Other Universities

Occasionally, when a faculty member transfers to the University from another institution, he or she will bring equipment. In such cases, the new faculty member’s department should send a list of those items having an estimated fair market value of at least $5,000 to the Property Accountant. The list should include the following information: description, serial number, model number, purchase date, original cost, transfer date, fair market value, age at the time of the transfer, remaining useful life, and new location along with any other pertinent information for each transferred item.  The Equipment Transfers Form (link to form ) serves as a template with all the required information and is recommended for use in evaluating equipment transferred into the University. The Property Accountant will use this information to update the equipment inventory and tag the equipment, if necessary.