Fixed Assets Coding and Procedures
Property Control is charged with identifying equipment that meets fixed asset criteria, assigning an inventory control number, affixing an inventory control tag, and recording it in the Banner fixed asset system. Property Control conducts annual inventory of all fixed assets. Department heads will be notified when an inventory of their unit(s) is going to be conducted. Per University policy, fixed assets must be procured through the Office of Procurement Services. For more information please visit the Procurement Services website.
Criteria for a Fixed Asset
- All equipment, whether obtained by purchase, donation, or other means, with a value of $5,000 or more and a useful life of more than one year is considered a fixed asset.
- Firearms and licensed vehicles are also fixed assets, regardless of the acquisition cost.
- Software is NOT a fixed asset. However, if it is an integral part of a computer or computer-based system, the cost is included in the acquisition cost of the computer.
- Equipment that is hard-wired or plumbed into a facility is NOT a fixed asset. Such equipment should be coded to general plant.
Original Acquisition Cost
- The original acquisition cost of a fixed asset includes the purchase price, cost of all components of the equipment, shipping, handling, delivery charges, warranty costs, and installation fees, as may be applicable.
- Fixed asset equipment that is to be traded in on the purchase of new equipment must be accomplished through the Office of Procurement Services. The inventory control number and a description of the equipment to be traded in must be listed on the requisition and purchase order so that the fixed asset that is being traded in may be removed from the department’s inventory.
Fixed Asset Account Codes
- Fixed assets must be coded to a fixed asset expense code in the FOAP on a requisition
- Fixed asset account codes
- 75000 – Capital Equipment-Computers (>=$5K)
- 75001 – Capital Equipment-Fur Fix Eqp (>=$5K) (Used for all other equipment)
- 75002 – Capital Equipment-Vehicles (>=$5K)
- 75003 – Capital Equipment-Constructed (Used if purchasing several items that will be put together to make one piece of equipment)
Q. What if I made an error entering the FOAP on my requisition?
A. If you have entered the wrong FOAP on your requisition AND Financial Services has not yet approved it, you need to contact the approver in Financial Services to have it changed.
- For Foundation FOAPs – Jo Garcia or Cindy Schull
- For Grant FOAPs – Michel Hackworth or Cindy Schull
- For all other FOAPs – Michel Hackworth
Q. What if Financial Services has already approved my requisition?
A. If Financial Services has already approved your requisition and the FOAP needs to be changed there are a few options.
- If a purchase order has not yet been created, contact Procurement Services to have the requisition cancelled and enter a new requisition.
- If a purchase order has been created, BUT has not yet been sent to the vendor, contact Procurement Services to have the purchase order and requisition cancelled and enter a new requisition.
- If a purchase order has been created AND sent to the vendor, contact your Budget Analyst in Financial Services and request a transfer of funds. The transfer can only be made once the purchase order is paid.
For questions regarding fixed assets and/or coding prior to submitting a requisition for equipment valued over $5,000 contact:
Coordinator of Property Control