Property Control - FAQ
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. Loaned or leased/rented property and street licensed vehicles under $5,000 are added to the inventory records
2. Can I put something on inventory that's under $5,000?
Yes. Items under $5,000 that meet the definition of High Risk and those items that a department wishes to track may be added to the departmental inventory.
3. What is capitalized equipment?
A fixed asset is capitalized only if it meets all of the following conditions:
*Considered owned refers to capital leases , leasehold improvements and "conditionally owned" assets purchased with grant/contract funds.
- Owned or considered owned* by the University.
- Held for operations (not resale).
- Has a useful life that exceeds one year.
- Meets the capitalization threshold.
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, all purchasing guidelines are met, and the Property Control Department is notified.
5. Can someone in my department buy something we aren't using any longer?
Please click here for more information.
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. For purchases on proprietary funds use account code A8011.
7. I just purchased a piece of equipment from another department. I do not have an invoice. How do I add this equipment to the inventory records?
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. Please click here for more information.
8. What if I buy something under $5,000, but it will be over $5,000 by the time all the components have been purchased. Do I add this to the inventory records?
Fully Purchased in Current Fiscal Year
Use account code 40101 (or A8011) 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.
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.
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.
10. An employee in my department is retiring. Can we give this employee their chair, calculator, or desk as a retirement gift?
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).