Definition of Equipment

Items with a purchase price of $5000 or more and having an estimated useful life of two years or more are defined as equipment.

This includes but is not limited to computers, printers, vehicles, lab equipment, and telecommunications equipment. This also includes major equipment and software upgrades which cost over $5000, and which extend the useful life of the enhanced or repaired equipment by at least two years. The total cost of a piece of equipment includes the initial accessories or auxiliary apparatus that are necessary to make it usable. It includes costs normally considered to be supplies such as cables, operating system software purchased with a computer, shipping charges, and special installation costs or setup charges not included with the purchase price but necessary for use of the equipment.

Items NOT considered equipment include works of art, library acquisitions, carpeting, and goods purchased for resale.
 
Associated Costs:

The following costs will not be considered as equipment expenses: software not bought as part of an original system, licenses and maintenance agreements, demolishing or dismantling equipment, or moving items from one location to another.
 
Fixed Equipment:

Items which become part of the building such as carpeting, built-in furnishings, fire systems, etc. are not included in the Property Control System. These are capitalized as part of the building.
 
Which Account Code to Use:

Use an equipment account code when ordering equipment over $5000. All capitalized equipment account codes are in the 74000 range of Banner account codes. The following codes in that range should be used only for specific purposes:

• 740003  -  grant equipment purchases between $3000 and $5000. These costs are not capitalized. This account code is for equipment purchases on sponsored awards only.

• 740099  -  capital equipment adjustments only

All purchases previously classified as equipment costing between $500 and $5000 are now classified as supplies, therefore a supply account code should be used.  Most departments use 711100.

Please remember that software is considered equipment if purchased with a PC, regardless of the price of the software. Software purchased by itself will be considered equipment only when it costs over $5000.

When purchasing equipment that will be charged to a grant account, please contact Liane Sutcliffe, ext. 2554 for more defined policies and procedures.