During financial statement reporting periods (quarter 2 and year-end),
Accounting Services reviews Capital Equipment purchases coded to the
capital equipment asset accounts (850101 and 850104).
* Any purchase that is identified as not belonging in capital
equipment will be re-classified via a journal entry by Accounting
Services to the non-capital equipment expense accounts (750xxx)
using the same chartstring as the original purchase.
* If the purchase was on a sponsored chartstring, and the 750xxx
budget code has not been established, Accounting Services will work
with the academic unit's Certified Approver to have the necessary
budget chartstring added to the project.
/This is not a new process./ However, while it was communicated during
the Asset Management Business Process change that was implemented in
fiscal year 2014, it may not have been communicated as well as it should
have been and may not have been understood by departments.
For purchases prior to fiscal year 2015, we have elected to re-class
those purchases identified as non-capital at a /central /chartstring
level rather than the detailed chartstring level.
Effective fiscal year 2015, the non-capital re-class entry will be
recorded in March and November. Charges for items that are not
considered to be capital and are on sponsored projects will be recorded
to non-capital equipment and F&A, if applicable, will be charged
according to the current business process.
The re-class entry is important to the institution because of the
additional business processes and requirements that correspond with
capital equipment (i.e., depreciation, financial reporting, and tracking
of capital equipment).
These additional business processes and requirements are not necessary
for non-capital equipment.
If you have questions, please contact Sherrie Kutzler at
kutzl013@umn.edu <mailto:kutzl013@umn.edu> or Amy Hagen at
akhagen@umn.edu <mailto:akhagen@umn.edu>.
The information above has also been posted on the EFS message screen
<http://finsys.umn.edu/news/ne
