Acquisition Objectives

Property Control is responsible for creating capital asset records acquired at the University.

[instructional blurb about tagging assets and departmental responsibilities detailed below]


What classifies as a capital asset? 

A capital asset is created when a purchase (greater than $5,000) is made to control the right-to-use equipment for a period of more than twelve (12) months. Capital assets are systematically expensed over the expected useful life (straight-line depreciation/amortization). Property Control uses FOATEXT in Banner to create capital asset records which makes it imperative to properly document purchasing information in text fields. Complete and accurate document text helps improve efficiencies with invoice processing and tagging. All capital assets are tagged with inventory observations occuring at least once every two years. Property Control should be notified as soon as possible with any updates to location or disposal of assets by using the related Asset Forms within.

Acquisition Types

Direct Purchases
  • Use the banner system for direct purchases and to process invoices.
    • Use account code series 202XX for minor equipment (cost less than $5,000).
    • Use account code series 4010X for capitalized equipment (cost $5,000 or more).
  • Property control is responsible for updating the fixed asset inventory records.
    • Below is information that should be entered into the invoice text field to create inventory records:
      • Description of equipment purchased
      • Responsible organization code
      • Building and room number where equipment will be located
      • Cost of asset
      • Model number
      • Manufacturer (if different from vendor)
      • Date the asset is put into service
  • Trade-ins include, but are not limited to:
    • Capitalized equipment for capitalized equipment.
    • Minor equipment for capitalized equipment.
    • Capitalized equipment for minor equipment.
    • Minor equipment for minor equipment.
  • Before trading-in equipment:
    • Sponsored Project Services approval must be obtained when trading-in equipment purchased with sponsored funds.
    • Ensure there are no restrictions for trade-ins.
    • Perform a cost-benefit analysis of assets to be traded-in:
      • Would the use of the equipment by a UO department outweigh the trade-in value?
      • Would another UO department be willing to purchase the equipment?
      • Is trading in the equipment the most efficient and effective method of disposal?
  • Purchases using a PCard are allowed for:
    • Construction of capitalized equipment (account code 40199).
    • Service centers and auxiliary funds (account code A8014).
    • Components of a fabrication for building/constructing/fabricating a piece of equipment that will eventually be capitalized.
  • After construction completion, equipment using account codes 40199 or A8014 must 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 a completed capital equipment. An attachment:
      • 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.
  • An Intent to Construct Capital Equipment form must be completed and forwarded to the Property Control Department to use the PCard.
  • When distributing PCard charges, asset number and amount must be added to the journal voucher text field.
  • No other capital equipment expenditures (401XX and A80XX account codes) are allowed using PCards. 
Gifts & Donation
  • The receiving department must notify Business Affairs.
  • A gift is the receipt of something of value from a donor (an individual, corporation, or non-profit entity). There is no economic benefit provided by the University in return.
    • A gift may be given to the University directly or through the U of O Foundation.
  • A grant, in contrast returns something of value to the donor.
Transfers from Other Universities or Institutions
  • A department needs to notify the Property Control Department when they receive a capital equipment from another institution.
  • Property control will record the asset information in banner.
    • Original cost and accumulated depreciation of the asset will be used.
Inter/Intra Departmental Transfers
  • Departments should use the Asset Maintenance Form (AMF) to notify Property Control regarding transfers of equipment.
  • Transfers include but are not limited to:
    • A move or transfer from one department to another department (with or without a financial transaction)
    • A move from one location (building or room) to another
    • A move off-campus for University business
    • Cannibalization (parting out) of obsolete or broken equipment
    • Lost or stolen equipment
  • When a transfer of equipment between departments includes financial compensation, Property Control can assist departments with the completion of a Journal Voucher (JV) in Banner.
  • If the equipment is a fully depreciated capital equipment or a minor equipment:
    • Use account code 20200 for debiting
    • Use account code 09350 for crediting
  • If the equipment is capitalized and not fully depreciated:
    • Use account code 4010X for debiting
    • Use account code 4010X for crediting
  • Capital expense codes: 40101 Equipment, 40104 Vehicles, and 40201 Vessels
Loaned and Non-Owned
  • UO does not accept responsibility for non-University owned property that is damaged, lost, or stolen.
  • University insurance coverage is generally provided for non-University owned property that meets all of the following requirements:
    • Is reported to and is tagged by the BAO Property Control Department.
    • Is used for official University business.
    • Its use has been approved by UO Department Head or Director.
    • Is not for personal use
    • Is referenced in a properly executed Personal Property Loan Agreement.
    • The loss claim meets the minimum deductible per occurrence and any other applicable policy requirements.
  • University Departments may be held responsible for the difference in the insurance proceeds and the repair or replacement cost.
  • To avoid personal property being mistaken for University owned property, individuals should:
    • Mark the equipment for identification of ownership.
    • Provide the department head with a list of personally owned property being used on University premises.

Purchase Documentation

Equipment Account Coding Decision Making

Banner Purchases - FOATEXT best practice

  • Description of the equipment purchased
  • Responsible org code
  • Building and room number equipment will be located
  • Cost of asset
  • Model number
  • Manufacturer
  • Date expected to be in service
  • Additional Purchasing and Contracting Services requirements
  • PI/Lab/Office receiving equipment, if applicable
  • PCS contract number, if applicable

Forms Walkthroughs

Asset Maintenance Form
  • For the transfer of equipment, from the originating to the receiving department.
  • Documents new equipment received by a department.
  • Shows the requestor of a transfer.
  • Points out the changes of an equipment's location.
Intent to Construct Capital Equipment
  • For a new capital equipment that is going to be constructed for University operations.
  • Shows the department that is going to contruct capital equipment.
  • Gives estimated date of completion.
  • Provides an explanation of the new capital equipment's function.
  • 40199
Property Check-Out Form
  • Documents the shared use of University property.
  • Is used when an individual wants to borrow Departmental/University property.
Property Receipt Form
  • Used by departments to internallly track equipments acquired from another department.

FAQ and Contacts

What is a capital asset?

A capital asset is created when a purchase (greater than $5,000) is made to control the right-to-use equipment for a period of more than twelve (12) months. Capital assets are systematically expensed over the expected useful life (straight-line depreciation/amortization). Property Control uses FOATEXT in Banner to create capital asset records, so it is imperative to properly document purchasing information when acquired for efficient invoice processing and tagging. All capital assets are tagged; inventory observations occur at least once every two years. Property Control should be notified as soon as possible with any updates to location or disposal of assets by using the related Forms within.

What are the minor and capital expense account codes?

Equipment Expense Coding Matrix

All Funds 

All Other Funds


Asset Description

Minor Equipment

 (< $5,000)

Capital Equipment (≥ $5,000)

Service Center/ Auxiliary Funds


General Equipment








Computer/IT Peripherals








Office Equipment/Furniture




IT Network Equipment




Sports Equipment




CIP Equipment




Are high-risk assets still tagged and inventoried (unit purchases below $5,000)?

No, effective July 1, 2019, the University eliminated the high-risk program due to budget cuts. Departments are now encouraged to individually track significant items below $5,000 on their own. Several tools currently exist to help departments, such as Property Receipt/Check-Out Forms, as well as 

What if multiple smaller purchases create one larger capital asset?

Great Question! A capital asset is generally referred to as a standalone system being placed into service that is used in operation for a pre-determined life. Where things get tricky are if incremental purchases are made, or separate purchases (below threshold) are combined to create a larger standalone system (above threshold). A common example we use to differentiate stand-alone elements is the vehicle: tires, engine, chassis, electrical, interior and exterior all combined into one larger unit. In this instance of the vehicle, if all items were to be purchased separate, the asset would not be able to function as intended until constructed. Each component is not considered a unique capital asset until fully constructed. The base VEHICLE is placed in service to begin depreciation as one capital asset. Generally, this piece-meal construction is not common when acquiring capital assets, as considerations are primarily given in full substance at the time of purchase. I.E. if you purchased all items with the intent to construct in a short amount of time, that would be considered one capital asset constructed and capitalized. Separately, if new tires were purchased and replaced for a vehicle already in service, the new tires (under threshold but added to a capital asset above threshold) should be considered as a separate maintenance and repair expense for a vehicle already put in service. These replacement tires would not have been purchased at the initial acquisition of the vehicle and should not be capitalized with the vehicle (unless individually over $5,000). If a node is being constructed and added to a larger network, the node should be capitalized as the incremental purchase price as if it functions on its own (cumulative component related integral pieces) should be capitalized as one "node". As individual nodes on a network are often independent and replaceable, these costs should not be grouped and capitalized into a larger "network asset" as a whole.    

Who should I contact in Property Control regarding questions about capital assets?

The Property Control team will happily assist with any questions that may arise:

Inventory Control (Tag and Track): Cheyenne Dickenson ( )

Property Control (Accounting): Dylan DeRosa ( )

Property Control (Accounting): Aly Roper ( )