Accounting for Moveable Equipment

The following accounts are used to record purchases of movable equipment within the university. If a purchase is recorded on one of the accounts below and does not meet the criteria for the particular account as defined it will be re-accounted to a more appropriate account code.

Account Purpose
614000 (Equipment) Account used to track equipment purchases $5,000 and over with a useful life of at least 2 years.
614030 (Equipment Cost Distribution) Account used to track equipment purchases when two or more sets of ChartFields share the cost of the purchase. The ChartFields contributing the greatest share is charged for the whole purchase at an equipment account other than 614030, usually account 614000. The same ChartFields are credited at 614030 for the amount of all other contributions by all other ChartFields. The other Chartfields are debited at 614030 to record their share of the cost of the purchase.
614020 (Prefabricated Structures) Account to track the expenses for prefabricated structures.
614050 (Software > $50,000) Account to track expenses for software greater than $50,000
614060 (Equipment Component) Account used to track expenses for a fabrication when the estimated non-labor cost will exceed $5,000. A separate set of ChartFields is established to accumulate all non-labor costs for eventual capitalization to the one line item on the equipment inventory. This is currently only used for sponsored projects.
614210 (Equip - Upgrade Existing Equip) Account to track expenses related to components or modifications that increase the value of existing equipment by changing its performance capabilities. The threshold for using this account is $2,000. Transactions should reference the property tag number so that the appropriate assets can be adjusted.
614240 (Equip - Federal Accountability) Account used for equipment whose life may revert under some named condition to an outside sponsor, usually a federal agency.