Major equipment: exploring the process.
Has your department purchased or are looking to purchase major equipment and you are curious about the process? Let’s explore!
Major equipment is defined as any equipment with an acquisition cost greater than $5,000 and having a life greater than one year. Departments who purchase major equipment are required to code the equipment to an account code beginning with 69. After the invoice has been paid, asset management is made aware of the purchase by review of the general ledger detail.
Q: My department purchased major equipment but used the wrong account code.
A: Submit a journal voucher to correct the account code to a major equipment account code, begins with 69.
Q: My department purchased a piece of major equipment but has not received a tag.
A: Was the purchase coded to a major equipment account code? If so, the tag will be sent. General ledger activity is reviewed the month subsequent to the month the invoice was paid.
Q: My department purchased a piece of major equipment that needs a tag immediately upon receipt due to the nature of the equipment.
A: E-mail firstname.lastname@example.org or call 701-777-5672 to visit about receiving a tag early.
Q: My department is looking to purchase a piece of equipment, but we’re not sure if it qualifies as major equipment.
A: E-mail email@example.com or call 701-777-5672.
Q: My department is purchasing equipment that together meets the $5,000 threshold, but individually does not. Is this major equipment?
A: No, major equipment must meet the threshold by unit.