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16.0 - Movable Equipment - Construction in Process to Complete


Movable Equipment – Construction in Process to Complete


Capital Asset Management



July 2018



January 2022




To provide guidelines for the process of initiating depreciation on movable equipment.


Per accounting guidelines, depreciation can only occur on assets that are in-service (being used for their intended purpose). It is for this reason, Capital Asset Management contacts the purchasing organization for the in-service date for construction in process (CIP) assets to confirm that the assets are being used before they are moved to complete.


Assets are normally assigned the CIP asset type code “40004” during the tagging process if the equipment is not available for tagging. This could be because the location for the equipment is under construction, the equipment has not been received, or the equipment is boxed and waiting installation. There could be many reasons, but these are a few of the more common ones.


Once the tag number is assigned in KFS, this triggers an inquiry to find out if the asset is in-service.


How in-service is defined:

  • Equipment like servers, switches, and video conference systems - Once they are installed and being used, they are in-service.
  • For technology equipment (like servers and switches) that are purchased with the intended purpose of being a spare, it is considered in-service when received.
  • For equipment (like a calibration tool) that is purchased to be used when needed - Items like this are in-service as long as they are ready to be used.
  • Equipment purchased for use in labs, classrooms, and experiments - This equipment is placed in-service when the asset is first available to be used in class or for research. For example, a smart board that is purchased in March for a new class that begins in August, would not be placed in-service until August even if the smart board is installed and operational in March.

How you can help...

  • You can update the asset in KFS when you know the asset is not in-service by changing the asset type code to 40004. Also, update the organization text with the expected in-service date, if known.
  • When you are entering the IU tag number in KFS and you know the asset is being used, update the organization text with something like “In-service date is 7/26/2018”. Be sure to include the in-service date.
  • If the asset type code is 40004, then the only time you would remove organization text “Not in-service” is when you replace it with the in-service text and date. If the asset type code is not 40004, you can remove the organization text “Not in-service”. 
  • When the asset type code is 40004, it should only be changed by the University Capital Asset Office.


Capital Equipment- must have an acquisition value of at least $5,000 and a useful life expectancy of one year or more.

Construction in Process- in regard to capital equipment, the state of not being completed, received, or in-service.

Equipment- The term “equipment” includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets.





CSOP 8.0 Capitalization of Moveable Equipment



Organizations that purchase capital assets.