2.0 Coding of Equipment Purchases


2.1

All items of equipment or systems of equipment with an acquisition cost of $5,000 or greater are considered capital (major) equipment and should be assigned G/L Account 421818. All items of equipment or systems of equipment between $1,000 and $4,999 are considered minor equipment and should be assigned G/L Account 421827. All computer related items under $1,000 are considered to be EDP expense and should be assigned G/L Account 421900. Office-related items under $1,000 are considered to be office supplies and should be assigned to G/L Account 420258. Laboratory related items under $1,000 are considered to be materials and should be assigned to G/L Account 420226. All maintenance and repairs of equipment should be assigned to G/L Account 420220.

2.2

Enhancement parts with an acquisition cost of at least $2,000, which materially and permanently increase the value or useful life of a capital item, will be capitalized and their cost added to the capital cost of the item being enhanced; otherwise, they will be expensed. The purchase order or the tag number of the enhanced capital item must be referenced on the requisition and purchase order for the enhancement part in order for the enhancement part to be considered capital.

2.3

Enhancement parts with an acquisition cost of at least $2,000, which permanently increase the value of an item of minor equipment to $5,000 or greater and are acquired within 60 days of the acquisition date of the item of minor equipment, and which also permanently increase the useful life of the item, will have their cost added to the cost of the item of minor equipment being enhanced and both the enhancement part and the item of minor equipment will be capitalized; otherwise, they will be expensed. The purchase order or the tag number of the enhanced item of minor equipment must be referenced on the requisition and purchase order for the enhancement part in order for the minor equipment item and the enhancement part to be considered capital.