Property - Procurement Card Use When Constructing Capitalized Equipment

Property - Procurement Card Use When Constructing Capitalized Equipment

Procurement Card Use When Constructing Capitalized Equipment

Effective immediately, the UO will allow for expenditures in the construction of capitalized equipment using account code 40199 (Construction in Progress Equipment). For service centers and auxiliary funds use account code A8014 (Construction in Progress Equipment). In summary, if you are building/constructing/fabricating a piece of equipment that will eventually be capitalized, you may purchase components of that fabrication utilizing the UO Procurement Card.

Equipment being constructed using the 40199 or A8014 account codes must:

  • At its completion, meet the following OUS capital equipment criteria:
    • Be owned or considered owned by the UO.
    • Held for operations, not for resale.
    • Useful life exceeds one year.
    • Unit cost of $5,000 or more.
    • NOT be an attachment to completed capital equipment. Characteristics of attachments include:
      • Adds functionality to parent asset.
      • Remains with the parent asset until disposed.
      • Depreciates with the parent asset and does not add to its useful life.

To utilize the procurement card option when making expenditures for constructing equipment an Intent to Construct Capital Equipment form must be completed and forwarded to the BAO Property Control Department.

When distributing Procurement Card charges utilizing account code 40199 or A8014, the following information must be added to the journal voucher text field:

  • Asset number
  • Amount

Per OUS Fiscal Policy 70.100.240, no other capital equipment expenditures (401XX and A80XX account codes) are allowed using Procurement Cards. This includes components and attachments of existing capital assets.

Further information regarding components and attachments can be found at:

Further information regarding the UO Procurement Card policy can be found at: