Purchasing Policies and Procedures 202.1.19
Capitalization
Criteria
Capital Equipment Defined:
Capital equipment is defined as any item that has a purchased price or market value of $1,000 or more and has a life-cycle expectancy of two years or more. This total dollar amount includes all additional fees associated with the purchase such as tax, shipping & handling and setup charges.
Processing Capital Equipment Purchase Orders
When the Purchasing Department receives a requisition that meets these criteria, the Purchasing Department will ensure, as a final auditing source, that the accounting distribution is valid.
When a discrepancy is found, it is incumbent upon the Purchasing Department to inform the requisitioning department and the Controller. The process for correcting this discrepancy can be handled one of two ways.
Upon receiving written authorization by
either the requisitioning department or the Controller, as well as written approval from
the President, the Purchasing Department may manually correct the accounting distribution
in the Banner purchase order form, FPAPURR, or
The Purchasing Department can cancel the requisition, requiring the end user to reenter a new requisition form with the corrected accounting distribution.
For additional information regarding capital equipment, please refer to the Shipping and Receiving Manual.