Property Management Policy & Procedure Manual
Section 200: Equipment Acquisition
Effective: 03/01/1979
Revised: 09/10/2020


Equipment purchases using state, local, or sponsored funds must be made in accordance with applicable federal and state law and Oregon State University (OSU) policies.  Equipment purchases over $5,000 must be made following the guidance in the Procurement and Contract Services Manual and the purchasing experts within your designated Business Center.

Units may purchase equipment out of multiple indexes except in two instances:

  1. Equipment purchased by Service Centers must be funded solely by the unit and must be used solely in support of the unit for which it was purchased.
  2. Equipment purchased on a grant or contract where the sponsor retains title, either fully or conditionally, must be purchased solely from that grant or contract.

Equipment purchased by Auxiliaries must be used solely in support of the unit for which it was purchased. Auxiliaries may fund their capital equipment purchases using auxiliary operating funds, plant funds where the auxiliary is responsible for the loaned and/or bond funds, or through OSUF funds.

It is extremely important to reflect the proper account code to classify purchases on all requisitions. Please consult your Business Center Accounting Staff for assistance. For sponsored awards, also review GCG 204-02: Cost Classification: Assigning Account Codes and GCG 205: Expenditure Account Codes in the Grant, Contract & Gift Accounting Manual. 

The requesting department is responsible for determining all factors affecting the installation or use of equipment including, but not limited to:

  • utility availability
  • space requirements
  • floor loading capacity, and
  • building accessibility.

Before purchasing used equipment, an individual must obtain approval from the department chair, dean, director, or designee. Approval may be given in a memo or as a statement on the requisition.

Most purchases require equipment to be in an approved capital budget. If the equipment is not budgeted, the supervisor’s or sponsor’s approval may be necessary before purchasing. For equipment purchased with sponsored funds see PRO 902-02: Ordering, Receiving & Tagging.

Capitalized Equipment (Costing $5,000 or More)

Responsible Party Action
  1. Prepare a departmental requisition, obtain necessary approvals, and send the document to buyer within your Business Center using the appropriate operating index and transaction account code:
  • 40101  Equipment
  • 40103  Art/Museum Collections
  • 40104  Vehicles
  • 40201  Vessels
  • 40199  Asset under Construction (should be used for fabricated equipment plus the initial invoice for Service Center and Auxiliary purchases)
Business Center Purchaser
  1. Ensure document is prepared properly.
  2. As needed, solicit bids or quotes on the item from vendors.
  3. Prepare purchase order in FIS Banner on commodity level accounting.
Business Center
  1. After unit has acknowledged that the equipment has been received (see PRO 301: Receiving Equipment), process the invoice in FIS Banner.
  2. Include appropriate information in the text field for the asset record.  See PRO-EX1: Creating an Asset Record from a Banner Invoice.
  3. When 40199 is used, a journal voucher (JV) is submitted to move the expense to 40101 or in the case of Service Centers and Auxiliaries to move the expense from the operating index and 40199 to the unit's fund and the appropriate capital asset account code:
  • A8011   Capital Equipment
  • A8012   Vehicles
  • A8015   Vessels
  • A8031   Collections
  • A8032   Works of Art and Historical Treasures
  • A8042   Library Books (General)

Note (a): The invoice number should be shown as the document reference on the JV. The JV must contain the necessary information to create the asset record. See PRO Ex2: Completing a Journal Voucher and PRO Ex1: Creating an Asset Record from a Banner Invoice.

Note (b): When an auxiliary is making their capital equipment purchase from an authorized plant fund or a FSxxxx index, the account code 40101 Equipment must be used as the debit entry on the JV and the JV text must include the accurate Fund-Org-Program code for the index where the depreciation should post.

Fixed Assets Property Management - Business Affairs
  1. Create an asset record from the invoice information and coordinate with department to affix bar code tag to equipment.

NOTE: See FIS 607: Depreciation for additional information when replacing existing equipment.

Additional Information

See the Procurement and Contract Services website for more information on purchasing requirements.

Automatic-pay vendors submit invoices directly to Business Affairs-Vendor Payment Operations (VPO) within Procurement, Contracts, and Materials Management (PCMM) for payment processing without routing to Business Centers for approval. The expense is then distributed to departmental indexes using journal vouchers. VPO makes every effort not to use auto pays for equipment expenditures. When identified, these invoices are forwarded to Business Center accounting personnel for payment through the regular Banner invoice process.

To assist in making that identification, the person placing the order should give the vendor the 40101 account code along with the Banner index code to be charged. Business Center accountants should review auto pays as they occur and enter JVs to correct any incorrectly coded purchases.

Oregon State University VISA procurement cards may not be used for the purchase of equipment or equipment upgrades. See FIS 401-01 Procurement Cards for further instructions.

Wire Transfers do not create an origination tag in the fixed asset module.  If a payment must be made via wire transfer, use account code 40199 and a journal voucher to redistribute to the appropriate transaction code.

The Multiple Invoice Function in FIS Banner under FAAINVE does not create an origination tag in the fixed asset module.  If a payment must be made via this process, use account code 40199 and a JV to redistribute to the appropriate transaction code.

Clearing 40199 Entries - It is important to set up capital equipment in a timely fashion. Any expenses that post to 40199 should be moved to the appropriate accounting data via journal voucher as early as possible to provide the Fixed Asset Team time to establish the asset record in Banner and properly tag the asset as part of OSU’s equipment inventory.

Beginning in FY19, all 40199 balances should be cleared at a minimum on a quarterly basis. If the equipment is received and not 100% completed, the JV text should state that it is a Work-in-Progress (WIP). Each subsequent quarter a JV should be done to move the “new” 40199 expenses and advise the Fixed Asset Team which Ptag to add the value to and then state whether the asset is completed or still a WIP. If a vendor requires a prepayment before shipping the equipment, the expense could be posted to A5008 Prepaid Equipment Expenses. Once the equipment is received, credit the prepayment and process with the appropriate accounting.