Zoom Instructions Please open the Zoom group chat by clicking on - - PowerPoint PPT Presentation

• Please open the Zoom group chat by clicking on

the Chat icon.

• Please also open the participants bar by clicking

the Participants icon.

Zoom Instructions

• Communicate via chat –

type questions into chat box

• Communicate via participant

responses – raise hand to be unmuted to ask question verbally

Zoom Instructions

Capital Asset Purchases in BUY.IU

Joy Maddox

• Assoc. Director of Capital Assets

• When equipment purchases should be capitalized
• What costs can be capitalized with the equipment
• What you need to know about making a capital

purchase in BUY.IU

• How to correctly fill out the asset configuration

document

What you will learn today:

Equipment purchases are capitalized when:

• the equipment is expected to be used for a period
• f one year or more,

AND

• the total capitalizable costs meet or exceed the

capitalization threshold of $5,000

See CSOP 1.0 Capitalization Rules

When is equipment capitalized?

Capitalized costs on moveable equipment

• Cost of equipment
• Freight/Shipping
• Installation
• Assembling/Preparing the site/asset for intended use
• Training
• In-transit insurance

Unallowable costs on moveable equipment

• Software licenses
• Service/maintenance agreements or warranties

What costs can be capitalized?

Object Code Description

5200 Expendable Equipment 7000 Capital Equipment 4776 Service Maint Contracts 4616 Computer software purchases

How do I know what object code to use???

Object Codes

Is cost of equipment including all capitalizable costs (shipping, installation, etc.) $5,000 or more?

• Yes – use object code 7000
• No – use object code 5200

Object Code Selection

Service agreements/warranties always use 4776 Software licenses always use 4616

ITEM DESCRIPTION QTY UNIT COST EXTENDED COST OBJECT CODE 1

Floor machine 1 $8,000.00 $8,000.00

2

Warranty 3 $500.00 $1,500.00

Additional Charges

Shipping and Handling $1,100.00 $1,100.00

INDIANA UNIVERSITY

9

Scenario #1

7000 7000 4776

Object Code Selection

ITEM DESCRIPTION QTY UNIT COST EXTENDED COST OBJECT CODE 1

Snare drum with stand 1 $1,000.00 $1,000.00

2

Bass drum with pedal 1 $2,500.00 $2,500.00

3

Cymbal 4 $400.00 $1,600.00

4

Tom drum with stand 2 $750.00 $1,500.00

5

Warranty 1 $600.00 $600.00

Additional Charges

Shipping and Handling $400.00 $400.00

INDIANA UNIVERSITY

10

Scenario #2

7000 7000 7000

Object Code Selection

7000 4776 7000

Asset Description: Drum set

ITEM DESCRIPTION QTY UNIT COST EXTENDED COST OBJECT CODE 1

Freezer 1 $4,299.00 $4,299.00

2

Installation 1 $500.00 $500.00

Additional Charges

Shipping and Handling $600.00 $600.00

INDIANA UNIVERSITY

11

Scenario #3

7000 7000 7000

Object Code Selection

ITEM DESCRIPTION QTY UNIT COST EXTENDED COST OBJECT CODE 1

Freezer 1 $4,299.00 $4,299.00

2

Warranty 1 $500.00 $500.00

Additional Charges

Shipping and Handling $600.00 $600.00

INDIANA UNIVERSITY

12

Scenario #4

5200 5027 4776

Object Code Selection

Requisitions in BUY.IU

• Lines with Capital Asset? checked must use capital
• bject code or requisition will be returned

• To receive notification of returned requisitions, go to

Notification Preferences in profile.

Requisitions in BUY.IU

• Returned requisitions are displayed in the My Action

Items section of the BUY.IU homepage

Requisitions in BUY.IU

• Asset Configuration Document will appear in the

KFS action list of individual listed as Prepared For

Requisitions in BUY.IU

• Collects information for capital asset database
• Asset description, manufacturer, location, etc.
• Created in application called FUSE
• Route stop added after PO created
• Document must be completed before PO is sent to

the supplier

• All other CAMS documents still in KFS

Asset Configuration Document (ACD)

Resources & Contact Information

CAMS Group Email capasset@iu.edu Theresa Cain Jason Lett CAMS Data Manager Capital Asset Inventory Coordinator tcain@iu.edu jmlett@iu.edu Joy Maddox Nicole Warweg

• Assoc. Dir. Capital Assets

Capital Asset Control Analyst jemaddox@iu.edu dwarweg@iu.edu

https://fms.iu.edu/capital-assets/capital-orders-buyiu/