Equipment is defined as “an item $100.01 and greater and has a useful life of one year or longer.” (Internal Governing Policy No. 163). Items costing $100.00 or less are properly coded as commodities. Software, other than when considered part of an initial computer order, should be coded as contractual services (accounts 71282 through 71284), even when greater than $100.00.
All equipment should be monitored to maintain proper inventory, regardless of value. Custodians are responsible for maintaining proper accountability, prudent use, care, and safeguarding of all university property within their jurisdiction. All disposals of equipment, regardless of value, must be coordinated through Property Management and Events Setup.
How Do I Determine If an Item is Equipment?
- Does the item cost $100.01 or more? Remember to include shipping/freight costs, assembly costs, and any other costs necessary to get the item ready for use. If yes, go to the next step. If not, the item should be coded as a commodity (accounts 713xx).
- Will the expected useful life be over one year? If yes, the item should be coded as equipment (see accounts below). If not, the item should be coded as a commodity (accounts 713xx).