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Business and Financial Policies and Procedures

Avoiding Property Accounting Problems

Perform a Monthly Reconciliation
The Monthly Activity by Chart and Organization Report in EDDIE (Electronic Data Delivery Information Environment) allows you to create your own list of additions, updates, disposals, and transfers. Running this report each month will help you find and fix errors while the transactions are still recent. If your unit relies on a record-keeping system other than Banner Fixed Assets you must reconcile the parallel system to Banner Fixed Assets at least monthly.

Update when the Property Accounting Contact Changes
When your unit property accounting contact changes, submit the Property Accounting Contact Change form immediately. Your unit contact receives important communication from University Property Accounting and Reporting that they will need as they maintain your unit's property accounting records.

Develop a Communication Process
To keep property records accurate, each unit should develop a process for unit faculty, staff, and students to alert the unit property accounting contact about:

  • New equipment purchases
  • Changes to equipment location, custodian, condition, etc.
  • Anticipated transfers
  • Disposals

Maintain Accurate Equipment Information
If the information about equipment is accurate on the requisition and purchase order, processing a new acquisition in FABweb will be easier. Pay particular attention to:

  • Account codes - The code and code range reflect the type and cost of the equipment. If the account code does not match the cost of the item you will have to submit a Journal Voucher to correct the entry. Consult the Account Code Reference Guide for Equipment Purchases to determine the correct code for your equipment.
  • Commodity Codes - Make sure you enter the correct commodity code because the depreciation rate is based on the useful life, which is part of the commodity code.
  • Document Level Accounting - When you create a Banner requisition, remove the checkmark from the DOC Level Accounting field. If you leave the checkmark in place, your fixed asset record in Banner will be created with incorrect dollar amounts. Consult Appendix E: Fixed Assets/Lease Capital Requests, PO101: Requisition Processing.

If you keep the record updated regularly it will also be easier to conduct the biennial inventory for your unit or respond to auditors' questions.

Document Trade-ins on Purchasing Documents
When moveable equipment is traded in on the purchase of new equipment:

  1. Include the following information about the trade-in equipment on the purchase documents (requisition, purchase order, invoice voucher):
  • Property control (PTag) number
  • Description
  • Serial number of the equipment to be traded
  1. Report the new asset to University Property Accounting and Reporting using FABweb and add the property control number of the traded-in equipment in the ""External Cross Reference" field.
  2. To dispose of traded-in equipment, return to the main menu of FABweb, select "Dispose" and continue through the tabs.

Related Policies and Procedures

Dispose of Unneeded Equipment
Serve as Unit Property Accounting Contact
Enter Account Codes when Purchasing Equipment
Importance of Accurate Equipment Coding

Additional Resources

PO101: Requisition Processing
Account Code Reference Guide for Equipment Purchases
Commodity Codes
Introduction to Property Accounting
FABweb Additions and Updates
FABweb Transfers and Disposals Webinar
FABweb Transfers and Disposals Participant Guide
Equipment Loans and Other Transfers
Physical Inventory of Equipment
EDDIE

Last Updated: June 1, 2011 | Approved: Senior Associate Vice President for Business and Finance | Effective: June 2011

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