OBFS Policies and Procedures Manual
Equipment Cost Valuation for Purchasers
When purchasing equipment, it is critical that you use the correct equipment account code. Not only do account codes categorize equipment by cost and type, but equipment account codes generate the Otag record in Banner if the correct equipment account code is used. To correctly value equipment, include installation costs, freight, transit insurance, initial inspection, testing. These costs need to be coded to an equipment account code 127* or 163*. Consider the trade-in allowance when choosing the account code. The final cost of the equipment, including the trade-in amount, will determine the correct account code to use. Do not include finance charges or the maintenance contract on an equipment account code.
If an equipment account code is not used, Banner will not create an Otag record, and the new acquisition will not show up in the unit’s FABweb inbox. Below are the equipment account code ranges that will generate an Otag:
127* - $2,500 - $4,999.99 - controlled but not capitalized equipment
163* - $5,000 and greater - controlled and capitalized equipment
Account codes starting with 121, 122, 124 and 126 DO NOT generate Otag records.
If an incorrect account code is assigned to an item, it can affect the reconciling of the unit's monthly operating ledger, as well as biennial inventory. To correct account codes, a journal voucher must be submitted in Banner. If you have questions about equipment account codes, contact University Property Accounting and Reporting (UPAR).
For additional information on equipment account codes:
To locate the person responsible for Equipment in a specific unit use the Department Property Contacts spreadsheet located on the Equipment Management Website under Helpful Documents.
Last Updated: December 1, 2023