Print/Copy Mail Services Vice President FA
1. When should I put something on inventory?
Inventory records are generally established for equipment/property with a per unit value of $5,000 or more, and the item has a life expectancy of at least one year.
2. Can I put something on inventory that's under $5,000?
With the exception of loaned or leased/rented property and street licensed vehicles, all property under $5,000 is not added to the inventory records. Those departments wishing to track property valued under $5,000 are encouraged to set up an internal system to list these non-capitalized items.
3. What is capitalized equipment?
See the Glossary for definitions.
4. Can I trade an item in on something else?
Yes, as long as the vendor agrees to take the item as a trade-in and all purchasing guidelines are met. See the Trade-In Old Equipment for New Equipment section of the Property Control Web Page for specifics.
5. Can someone in my department buy something we aren't using any longer?
State Law requires the University to offer all surplus property to the institution first, then to other institutions within the state system, public agencies and finally not-for-profit organizations. If the property is not purchased by one of the above, then the item is offered to the public through a competitive bid process. The person in your department would be eligible to bid on the equipment through this process.
6. What account codes should I use for equipment purchases?
Use account code 40101 for items $5,000 and over, and a life expectancy of at least one year.
When equipment is transferred or purchased from an internal department, then a journal voucher is used to transfer the money, and the transfer information is entered in the JV text field.
Fully Purchased in Current Fiscal Year
Use account code 40101 for the initial payment. Enter an explanation in the text field that additional parts will be added that will increase the value in excess of $5,000. Enter in the text field for the remaining payments "to be added to the value of (enter the tag number first assigned)". Include the same location and organization codes used on the initial payment.
Not Fully Purchased in Current Fiscal Year
If the total in the current fiscal year will not exceed $5,000, use account code 40199 Construction in Progress.
http://www.ous.edu/cont-div/fasom/sec2/sec0212.htm)
When the equipment is operational and in use, and the value has met or exceeded the $5,000 capitalization limit, a journal voucher is to be processed by the department to change the account code from 40199 to 40101.All inventory information should be entered in the text of the journal voucher.
If more pieces are to be added to the piece of equipment just capitalized, use account code 40101 on the invoice, and enter in the text field of the invoice the inventory number affected, and the value to be added to it.
NOTE: Any attachments added to an existing piece of equipment will be depreciated over the remaining time left of the original piece of equipment - i.e., if a microscope is purchased in September, 2003, and an attachment is added in June of 2004, the attachment will depreciate over the remaining 86 months left to depreciate on the microscope. If the attachment is added to a fully depreciated piece of equipment, the attachment will be considered fully depreciated, too.
>9. How do I dispose of minor equipment and supplies?
All equipment, including minor equipment and supplies, must be disposed of using the Surplus Property guidelines for disposal regardless of the value of the item.
No. All property to be disposed must follow the Surplus Property guidelines for disposal, regardless of the value of the property and the source of funds originally used to purchase the item (i.e., General Fund, ICC Funds, ASA Funds, Grant funds, etc).
