Property Management Policy & Procedure Manual
Section 000: Introductory Material
The BANNER FIS software uses "accounts" or "account codes" to identify types or categories of expenditures. FTVACCT is a screen to validate account codes.
The following information is a brief description of the account codes most frequently used to pay for equipment acquisitions, upgrades, and repairs in FIS Banner, and when it might be appropriate to use them. This information is a Fixed Assets Property Management - Business Affairs interpretation of the account codes, and is not intended to serve as definitions for these codes.
202XX Minor Equipment
When a purchase meets the definition of equipment in every respect EXCEPT its unit value, a 202XX account code should be used for payment. Minor equipment is not included on the equipment inventory. The generic account code for minor equipment is 20200. Other more specific codes for minor equipment are:
OTHER IT RELATED PERIPHERALS (Non Capitalized)
20220 Inv Equip/Non-State Funds/Non-Cap
Equipment costing $5K or greater, purchased on non-state funds, and where ownership will likely remain with a non-state entity.
20250 Parts-Auto & Equipment
When replacement parts are purchased for a vehicle or other equipment, account code 20250 is used to identify the payment. This code is not used to pay someone to repair equipment (see 23501), nor is it used for parts that extend the life expectancy or enhance the original function of the equipment (see 23505).
23501 Equipment Maintenance and Repairs
When a piece of equipment is repaired, account code 23501 is used to identify the service charge from the vendor who performs the repair. See 20250 for replacement parts. Code 23501 is not used for repairs that extend the life expectancy of the equipment or enhance the original function of the equipment (see 23505)
Equipment repairs do not increase the value of the equipment on inventory. Sometimes researchers working with grant or contract monies will identify an expenditure as equipment when it should really be in this category. Please double-check "upgrades" to see if they are repairs.
23505 Major Reconditioning of Equipment
When a major reconditioning of equipment extends its life expectancy by more than 2 years, account code 23505 is used. Equipment reconditioning does not increase the value of the equipment on inventory.
23514 IT Hardware Maintenance Contracts (tax reportable)
Expenditures for Information Technology hardware maintenance covered by maintenance contracts.
23522 Maintenance Materials
Use this account code for the purchase of items such as paint for building maintenance, nuts and bolts for equipment maintenance, and bark dust for intramural field maintenance. Remember, this account code is for the purchase of a product or good, not a service.
24101 Equipment Rentals & Leases
Use this account code for the payment of equipment acquired by rental or lease.
28810 Interest Expense
When equipment is purchased on an installment plan, use account code 28810 for the interest portion of all payments. (The initial payment is made using the appropriate 40xxx account code). Interest is not included in the value of the equipment because the equipment is inventoried at its full capital expenditure value when the initial payment is processed. Interest expense must be identified separately from capital expense.
When general equipment meeting the equipment definition is purchased, the payment is made using account code 40101. All funds expended using this account code must be accounted for by corresponding additions of value to the equipment inventory.
Note on Upgrades: Sometimes a new part is purchased which the department wants to add to the value of an asset. (An example would be additional memory capacity for a computer.) These "attachments" may only be added to the value of an asset during the fiscal year in which the parent asset was purchased. Within that period, 40199 should be used to pay for the part, then a JV should be done to 401xx with a text notation on which asset is being increased in value and what is being added (see PRO-Ex1: Creating an Asset Record from a Banner Invoice). Additions made after that time period must be purchased as supplies.
Livestock herds are no longer capitalized. If the value of an individual animal met the capital threshold and the standard useful life it could be added to inventory.
40103 Art Work
Art work which is not permanently attached to buildings and meets the equipment definition for value and life expectancy is purchased on this account code and added to inventory. Since account code 40103 does not create a temporary asset record, the procedure for inventorying this artwork is the same as the procedure for inventorying gift assets – submit a Fixed Assets Data Entry Form (FADE form) and attach a copy of the invoice or other backup documentation for the acquisition.
This is a new account code (2003) in FIS Banner for self-propelled vehicles licensed for road use. All such vehicles are capitalized and added to inventory, regardless of value.
40111 Equipment Lease-Purchase
This account code may only be used with authorization from the university Contract Administrator. See PRO 204: Lease-Purchase for additional information.
40113 Principal Installment Payment
When equipment is purchased on an installment plan, 40113 is used for the principal portion of all payments after the initial payment (the initial payment is made using the 40101 account code). See PRO 203: Installment Purchase for additional information. Interest expense must be identified separately from capital expense, see 28810 above. 40113 payments do not add value to the equipment inventory because the equipment is inventoried at its full value when the initial 40101 payment is made.
40199 Equipment Under Construction
When equipment is fabricated by departments other than service departments and is for use by OSU, the costs are accumulated on this account code. When fabrication is complete and the asset is put into use, a single journal voucher should be done to transfer these costs to 40101. Asset information should be provided in the text field of the journal voucher, see PRO-Ex2: Completing a Journal Voucher.
A vessel is a boat or ship with a hull that is 25 ft. in length or more. When a boat meeting the capitalization criteria is purchased, use this code for the expenditure. This account code does not create a temporary asset record in FIS Banner. One of two options may be used for inventorying vessels: Process the invoice on 40199, then JV to 40201, providing text for the asset record (preferred method) or Process the invoice on 40201, then submit a Fixed Asset Data Entry form to Property Management.