Equipment Management

Purchase Order

General Information

Equipment Subaccounts and Object Codes

The general subaccount for inventorial equipment purchases is sub 4 (subs 5 and 7 may also be used). Sub 3 is generally used for non-inventorial equipment purchases (again, subs 5 and 7 may be used).

The following table, in which sub 3 is used for all non-inventorial equipment purchases and sub 4 for all inventorial equipment purchases, provides a general outline of the different object codes used for varying types of purchases, and for certain related charges, such as trade-in credits, freight/shipping, warranties and maintenance agreements, and installation:

Description Sub 3/
Object Code
Sub 4/
Object Code
Inventorial Equipment, General NA 9000
Non-Inventorial Equipment, General
($200.00-$1,499.99)
8100 NA
Non-Inventorial Equipment, General
($1,500.00-$4,999.99)
8120 NA
Inventorial Computing Equipment (includes printers, scanners, servers, hard drives, etc.) NA 9900
Non-Inventorial Computing Equipment
($200.00-$1,499.99)
8100 NA
Non-Inventorial Computing Equipment
($1,500.00 to $4,999.99)
8120 NA
Fabrications (Non-Inventorial Components) NA 9610
Inventorial Furniture NA 9000
Non-Inventorial Furniture
($200.00-$1,499.99)
8100 NA
Non-Inventorial Furniture
($1,500.00 to $4,999.99)
8120 NA
Trade-In Credit NA 9300
Warranty/Maintenance Agreement 7260 NA
Repair of All Equipment 7100 NA
Freight (General Equipment) 8000 9000
Freight (Computing Equipment) 8000 9900
Installation (General Equipment) 8000 9000
Installation (Computing Equipment) 8000 9900

One purchase order may require the use of several different subaccounts and object codes. For example, the purchase of an $800 IMac on line 1 would be coded sub 3-8100; a $3,000 PowerMac on line 2 would be sub 3-8120; a $5,500 PowerBook on line 3 would be sub 4-9900; and a $215 warranty and maintenance agreement on line 4 would be sub 3-7260.

Special Notes

Trade-In Credits – must always be entered as a separate line item in REx, using object code 9300 and a negative amount. A trade-in credit is a non-taxable amount.

Warranties/Maintenance Agreements – are specifically excluded from Equipment Value per the terms of BUS-29; their cost, if provided as a specific charge by the vendor, must be recorded on sub 3, object code 7260. Generally, warranties and maintenance agreement charges are non-taxable.

Freight/Shipping Charges – at the department’s discretion, may be included as part of equipment value, using sub 4, object code 9000 for general equipment or sub 4, object code 9900 for computing equipment; or may be paid on sub 3, usually on object code 8000. Generally, freight/shipping charges are non-taxable.

Title Status of Equipment at Acquisition

The title status of inventorial equipment purchased with extramural funding is determined by the granting agency and included in the terms and conditions of the contract, grant or cooperative agreement entered into by the agency and the University. Depending upon these terms and conditions, title to all equipment may vest with either the University or the granting agency, or title may vest with either the University or the agency under varying circumstances (for example: title to all special purpose equipment vests with the University, while title to general purpose equipment vests with the agency).

Equipment Management relies upon information provided by the Sponsored Projects unit of the Office of Research (via ORBIT) when determining the title status of inventorial equipment. It is VERY helpful if the department, at the time that it submits its requisition, notes all cases in which title vests with an agency other than the University.

It is especially important to indicate when title vests with the Federal Government, since such purchases are NON-TAXABLE. All other University inventorial equipment purchases, even if title vests with the State Government or one of its agencies, are taxable. (Some vendors are under the mistaken impression that the University is exempt from paying sales tax: it is not. If a vendor does not charge applicable sales tax when invoicing an order, Accounting will assess it in the form of use tax.)

Add-Ons, Upgrades, Replacement Parts and Repairs

As defined by BUS-29, Add-Ons (Upgrades) are “[c]omponent parts with a cost of [$5,000] or greater which permanently increase the value or useful life of a specific (as identified by the property number) University-owned unit of inventorial equipment … Equipment upgrades valued at less than [$5,000] are to be expensed as non-capital transactions.”

The cost of add-ons or upgrades may be charged to an inventorial equipment object code if three criteria are met:

  1. The amount being added via the add-on or upgrade is at least $5,000 (the inventorial equipment threshold also applies to add-ons and upgrades).

  2. The add-on or upgrade is to an existing piece of inventorial equipment – that is, one that has an active UC property number. For example, if you wish to add $6,000 in value to a $3,000 spectrometer purchased after July 1, 2004 (and which, therefore, does not have a UC property number), the add-on will have to be paid on sub 3. You cannot “transform” an item of non-inventorial equipment into inventorial equipment by adding value to bring it above the $5,000 threshold.

  3. The component part(s) being added upgrade the capabilities or extend the useful life of the existing piece of inventorial equipment.

Given the preceding requirement, per BUS-29, the cost of Replacement Parts and Repairs, “regardless of cost, shall … be expensed [as non-inventorial transactions].” Replacement parts – where a worn-out component is replaced with a (near) identical one, to allow a machine to continue functioning – do not add any NEW value to a piece of inventorial equipment: the deleted value of the old, replaced component cancels out the new value. Similarly, the cost of repairing a piece of equipment does not add to its base value, it only maintains it. (Repair costs, if provided by an outside vendor, should be expensed to sub 3, object code 7100.)

The only time that a replacement item may be expensed on an inventorial object code is if, when replacing a worn-out item, it is replaced with a newer/higher quality component – worth at least $5,000 – that upgrades the functioning and extends the useful life of an existing piece of inventorial equipment.

Tips / Helpful Hints When Entering Inventorial Equipment Orders into REx

Standard Inventorial Equipment Order

  1. As with all requisitions, enter the quantity, unit, unit price, line item description and model number in the header section of the REx screen (items within the green box).
  2. Since the order is for inventorial equipment – a copier, enter the correct sub and object code in the “Line Item Budget Data” section (entries within the blue circle).
  3. Enter the following information in the “Equipment Purchases” section. REx will not yet you proceed until this has been done (entries within the red box):
    1. Custody Code (mandatory)
    2. Building Number (mandatory)
    3. Room Number (optional)
    4. User Code (optional)

If processing an on-line requisition with multiple line items, you only need to add the equipment information for one line item. Only on rare occasions should you enter equipment information on multiple line items: when ordering two or more items that will be located in separate buildings or rooms, or that will have different users or, in the case of split-funded orders, when two or more items will have different custody codes.

Remember, if you enter room and user information at the time that an order is placed, you may save yourself data entry into CATS when the item is received, or when it is time to complete an EQ920/Physical Inventory.

  1. If you are placing a complex order, for several items of inventorial equipment with multiple line items that group together for each item, it is helpful to provide Equipment Management with this kind of information in the Notes section in REx. This may save you a phone call from Equipment Management asking how the order is configured, as we attempt to determine how many property numbers are needed and how to allocate the value of the various line items among the property numbers.

Add-ons

  1. In the “Equipment Purchases” section, enter Y in the “Add-On” field and enter the property number(s) of the item(s) to which the value is being added (entries within the red circles).

    Using the PF8 key to scroll within the property number field allows entry of up to 10 property numbers. If (rare case indeed) you need to reference more than 10 add-on property numbers, use the Notes section.

    You only need to enter the property number(s) of the items to which the add-on value is being added: once you hit the ENTER key, all associated custody code, building, room and user code information (entries within the purple box) will automatically fill those fields. (NOTE: This auto-filled information cannot be modified. If it is incorrect, changes must be processed in CATS.)

Trade-ins

  1. In the “Header” section, key in the amount as a negative number and enter N in the taxable field (entries within the green box).
  2. In the “Line Item” section, enter object code 9300 and the amount as a negative number (entries within the blue box).
  3. In the “Equipment Purchases” section, enter Y in the “Trade-In” field and enter the property number(s) of the item(s) that are being traded in (entries within the red circles).

    Using the PF8 key to scroll within the property number field allows entry of up to 10 property numbers. If (rare case indeed) you need to reference more than 10 add-on property numbers, use the Notes section.

    You only need to enter the property number(s) of the items being traded in: once you hit the ENTER key, all associated custody code, building, room and user code information (entries within the purple box) will automatically fill those fields. (NOTE: This auto-filled information cannot be modified. If it is incorrect, changes must be processed in CATS.)

Fabrication Components

When ordering inventorial or non-inventorial components of fabrications, it is important to remember several details:

  1. In the “Line Item” section, use object code 9610 (entry within the blue circle) for the expenditure.
  2. In the “Equipment Purchases” section, enter the fabrication name in the “Fabrication ID” field (entry within the green box). Since there are a limited number of spaces, you will probably need to abbreviate. (You can enter the full name of the fabrication in the Notes section of the requisition.)

    If this is the first purchase for a new fabrication, it is helpful to make note of that fact in the Notes section, where you can also inform Equipment Management of any Low Value and PHY numbers set up for the fabrication.

  3. If the purchase is for an established fabrication that already has a property number, enter its property number in that field (entry in the red circle): once you hit the ENTER key, all associated custody code, building, room and user code information (entries within the purple box) will automatically fill those fields. (NOTE: This auto-filled information cannot be modified. If it is incorrect, changes must be processed in CATS.)