|Tagging Moveable Equipment
|Capital Asset Management
To provide guidelines for the tagging of movable capital and non-capital equipment.
When assets cannot be tagged because they are internal to an existing asset a note should be entered in the Org Text Line indicating the tag number or asset number the internal asset was installed into. The Org Text can be entered using the Asset Edit document in the Capital Asset Management System.
Any asset that adds to an existing system and cannot be used independently should be merged into the primary asset. See CSOP 15.0 Asset Merge.
Capital assets are created based upon information from the Asset tab on a Requisition in the KFS Purchasing Section. In some instances, the Capital Asset tab information may not provide a clear indication that there is more than one asset being purchased. This usually occurs when purchases are made in 'bundles" as is the case with mass purchases of computer equipment. Physical inspection of the asset(s) upon tagging will confirm the need to separate it into the correct number of assets. Upon notification by the department, the University Capital Asset Office will issue an asset separate to create the correct number of assets. See CSOP 31.0 Mass Purchase.
Reviewing a capital asset for tagging should include verifying that the asset type code matches the type of moveable equipment being tagged. The asset type code chosen will assign a useful life to the asset which will set the depreciation term of the asset.
Reviewing a capital asset for tagging should include verifying its description in the Capital Asset Management System to make sure the asset can be correctly identified.
When moveable capital equipment is taken to Surplus Stores the yellow capital asset tag should remain on the equipment and an Asset Transfer Document initiated in the Capital Asset Management System within thirty days (30) of the asset having been sent to surplus.
Tagging of federally owned equipment
Federally owned capital assets in which title is vested in the Federal Government must be tagged with a Federal Government tag and a yellow university capital tag. These assets will appear on the tagging report with the following object codes: 7031, 7036 or 7046. When an asset has a government owned object code you will be contacted by the University Capital Asset Office to coordinate the tagging of the government equipment.
Tagging of capital leased equipment
When one FAS 13, Accounting for Leases, capitalization criterion has been met a capital leased equipment asset will be created and tagged as follows:
Moveable non-capital equipment may be tagged with (1) tags purchased from the University Capital Asset Office or (2) a tag purchased by the organization if the tag has been approved by the University Capital Asset Office.
The tag should be placed on a flat surface near the manufacturer's logo unless it is attached to a removable component or is inaccessible for inventory purposes. In either case, the tag should be placed in a visible permanent location since it may be scanned.
If it is not possible to tag the item due to its size, number of components, or delicate nature (i.e. microscope objectives, etc.), then a capital letter "N" should be placed in the tag number field of the Asset Tagging screen in the Capital Asset Management System to indicate that the asset can not be tagged.
Non-capital assets should be taken to Surplus Stores. However, non-capital assets do not require an asset transfer document to be issued. The white non-capital asset tag or the organizations tag should be removed when taken to Surplus Stores.
Replacement and removal of inventory tags
Procedures for the replacement and removal of inventory tags:
Capital Equipment- must have an acquisition value of at least $5,000 and a useful life expectancy of one year or more.
Equipment- The term “equipment” includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets.
Non-Capital Equipment- must have an acquisition value of less than $5,000.
Systems- are defined as components that work together to perform one function. These components must be necessary for the system to function.
|Organizations that purchase movable equipment.