Fixed Assets FAQs

General

1). When should I begin to use new G/L accounts for capital moveable equipment purchases?

–The new natural accounts are available and active to be used for the remainder of FY2020.
–Starting FY2021 (7/1/2020), it is mandatory to use the new natural accounts.
–Starting FY2021 natural account 67040 will be disabled.

2). Do I need to reclassify to new G/L accounts for 2020 purchases?

–No, only going forward for the remainder of FY2020.

3). What should I do if I charged the wrong account?

–Prepare a journal entry to reclassify to the appropriate account.

4). Who should I contact if I’m not sure on what natural account to charge?  As an example should I use lab equipment or medical equipment?

–Refer to the “Class Code and Depreciation Chart” above.
–Discuss with your business manager.

5). What should I do if I get an error message when using the new natural accounts?

–Contact the Unit business office.

6).  Should I include the warranty cost part of the total asset cost?

–Typically purchased assets have some type of standard warranty (1 year). Extended warranties like year 2-5 years are not included in the capitalization process.  Therefore, it should be charged to another appropriate expense account.

7).  Should I include the maintenance agreement cost part of the total asset cost?

–If maintenance agreement is required to purchase the equipment, then it is included for capitalization purposes. For example, purchasing a server that a vendor is required to log-in and Maintains/Apply Patches.

8).  Can I charge consumables to capital moveable equipment?

–Some assets require some consumables for initial startup. An example would be a copier. If delivered without ink and toner, it is not a working unit. The initial set up includes the ink and toner for the copier to work part of total cost. However, the following year when you need to buy more consumables, then treat such expense as regular supplies.