Equipment Acquisitions

The University assumes title to equipment that is acquired through purchase, constructed using University funds, or received as a donation or transfer. All equipment must be recorded in the FABweb system, including Capital Development Board equipment. However, you do not have to include items in your departmental inventory if:

• Your storeroom unit acquires equipment for resale
• Your unit has purchased items for the use of a non-University entity

Correctly coding equipment and property from the beginning is important because the codes affect so many activities in the life cycle of your equipment. If property codes are incorrect, you may have difficulties processing a new acquisition in FABweb, conducting the biennial inventory for your unit, or responding to auditors' questions. For more information, consult Types of Codes.

Purchased Equipment

If your unit purchased equipment through the requisition/purchase order process, Pcard, a standing order or direct pay, using an equipment account code, an initial record (Otag) will be created in FABweb for you to complete. For an explanation of how equipment purchases are entered into FABweb, consult Equipment-Banner Tags Process Flow. For information about processing purchased equipment, consult OBFS Policies and Procedures Manual, 12.1.5 Process a New Acquisition in FABweb.

Determining the Value of Equipment
To value equipment, not only is the purchase price of the equipment itself included, but all ancillary charges necessary to place the asset into its intended location and condition for use need to be included. These costs include things like shipping, installation, transit insurance, testing, professional fees, site preparation costs and trade-in-allowance. If any of these charges are on an invoice with multiple items, use the prorated amount based on the total invoice amount minus the ancillary charges. Do not include charges such as finance fees or maintenance. Also refer to: 12.1.3 Determine the Value of Equipment or Property.

Equipment issued from storerooms

If your unit purchased equipment from a University storeroom, follow the procedures outlined in OBFS Policies and Procedures Manual, 12.1.5 Process a New Acquisition in FABweb.

Non-Cash Additions

A non-cash addition is equipment that is not acquired in exchange for cash. Since there is no invoice payment, no Otag is created and the equipment will not automatically appear in your list of FABweb new acquisitions. Therefore, you must enter it in FABweb. Common examples of non-cash additions include found, donated (gifts), loaned, fabricated or equipment transferred from another institution.

Transfer from State Surplus

Equipment obtained from the State Surplus Warehouse in Springfield or directly from another State of Illinois agency is considered a non-cash addition and must be entered in FABweb.

Transfer to the University with Researcher

When equipment from another university has accompanied a researcher, it is considered a non-cash addition and must be entered in FABweb.

Loaned Equipment

Equipment received on loan from outside the University is considered a non-cash addition and must be entered in FABweb with the correct Title-To code.

Fabricated equipment (Equipment Constructed by the University)

Drawings, designs, labor, component parts, materials, and supplies purchased for use in constructing a piece of equipment are initially recorded separately as fabricated equipment in process. When the construction of the equipment is completed and the equipment is placed in use, units must report its completion to UPAR using FABweb for addition to Banner Fixed Asset. When plant craftsmen construct the equipment as part of a stores or service operation, it is recorded essentially the same as equipment issued from storerooms. For information about account codes to be used for fabricated equipment, consult FA101 Introduction to Property Accounting and FA102 FABweb Additions and Updates

For additional information about all non-cash additions consult OBFS Policies and Procedures Manual, 12.1.7 Identify Donated, Found, and Other Non-Cash Addition Equipment and 12.1.8 Add Donated, Found, and Other Non-Cash Addition Equipment to FABweb

Equipment Transferred from University Surplus

If your unit has received equipment from the surplus warehouse, you will receive a notification email from Property Accounting that the transfer has been completed.

Transfer of Equipment within the University

Complete the transfer of equipment from one unit to another in FABweb. For additional information, consult OBFS Policies and Procedures Manual, 12.3.1 Transfer Equipment to Another Unit or FA103 FABweb Transfers and Disposals Lesson 1.

Title Transfer from Sponsor

In some instances equipment bought with certain sponsored project funds (grants, contracts, gifts, or federal appropriations) is owned by the sponsoring agency but is used in research at the University of Illinois. For more information, consult "Title Transfer From Sponsor" in FA104 Equipment Loans and Other Transfers Training.

Last Updated: June 30, 2015