1. Fixed Assets Policies and Procedures for Fixed Asset Purchases
Good morning/ Good Afternoon!
I’d like to welcome everyone today
and thank you all for your interest in learning more about Fixed Assets Policies and Procedures.
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Today‘s workshop is to give you information on the most current policies and procedures in the Fixed Assets Section.
I hope to answer any questions that you may have.
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Let me introduce myself and the Fixed Assets staff.
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Introductions-Names and Positions
Ask questions about any part of the presentation.
I will stop at the end of each section for questions about that area before moving on to a new subject, so please feel free to ask.
If I move too fast for you that take notes, signal me and I’ll slow down.
Will be an open question and answer period at the end of the presentation.
Robette Edwards,
Fixed Assets Supervisor
9/22/2018
Fixed Assets Section of Accounting Services

2. What does the Fixed Assets Section of Accounting Services do?
We are responsible for:
Determining new assets and bar-code tagging for identification
Performing annual inventory audits
Determining correct cost of assets recorded
Maintaining the University Fixed Assets accounting records that document equipment and property acquisitions and which are part of the annual University Financial Statements.
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Automated until stars are up.
Click for first paragraph and ledger graphic.
Click for second paragraph.
Click for Auditing statement.
Basically, our responsibility is to maintain records that reflects the actual physical equipment on campus as accurately as possible at the current time. This requires the cooperation of the custodian departments to provide this information.
We are part of Accounting Services under the Financial Services Dept.
9/22/2018
Fixed Assets Section of Accounting Services

3. New Fixed Asset Purchases
The first area we will look at is New Assets.
These are newly purchased assets that meet the criteria for being added to the Fixed Assets system.
9/22/2018
Fixed Assets Section of Accounting Services

4. Fixed Assets Section of Accounting Services
What are Fixed Assets?
DEFINITION
Capitalized fixed assets are land, buildings machinery, tools or furniture (Property, Plant and Equipment) that:
Are used in course of business operations
Have a normal life expectancy of two years
or more
9/22/2018
Fixed Assets Section of Accounting Services

5. Fixed Assets Section of Accounting Services
What are Fixed Assets?
Includes 3 types of assets-
Permanent – land, improvements to land, easements, buildings, building improvements, infrastructure, and structures
Moveable Equipment (Asset barcodes applied & inventoried) –
Office equipment and furniture,
Data processing equipment,
Educational, research and scientific equipment,
Motor vehicles- licensed,
Other equipment -unlicensed vehicles, machinery,
landscaping, dining hall, maintenance and other
equipment
Other tangible or intangible assets
Software, copyrights, etc
9/22/2018
Fixed Assets Section of Accounting Services

6. Fixed Asset Cost Threshold
$5,000 or more Per Asset ONLY
The recorded cost of each capitalized fixed asset in the General Ledger includes:
Asset Cost + (tax)
Installation Fees
Delivery Fees
Legal Fees + + + $
$300.00
$500.00 $
*All/Any of these must be combined to equal the NC State threshold of $5,000
IF the Total Cost ≥ $5,000 appropriate purchasing expenditure codes are required
9/22/2018
Fixed Assets Section of Accounting Services

7. Fixed Assets Section of Accounting Services
9/22/2018
Fixed Assets Section of Accounting Services

8. Fixed Assets Section of Accounting Services
9/22/2018
Fixed Assets Section of Accounting Services

9. Banner Fixed Asset Account Codes
Fixed Asset account codes all begin with
203###
WARNING!!
Some EDP non-capital equipment account codes for items under the $5,000 threshold are in the Property, Plant and Equipment Pool with account titles and codes similar to the capitalized account needed for Fixed Assets over $5,000.
Title Changes have been made to add the word Capital after all capitalized account titles for equipment over $
9/22/2018
Fixed Assets Section of Accounting Services

10. How does the fixed asset become an asset?
WHERE DOES IT HAPPEN?
A cost summary of asset values are recorded in the General Ledger (capitalized) while supporting detail is maintained within Fixed Assets.
HOW DOES IT HAPPEN?
Triggered by invoicing and receiving transactions, CAPITALIZED asset records are created in the GL & Fixed Assets modules automatically based on YOUR entry of:
the capital expenditure account code used by the purchasing organization and
the $ threshold for capitalization.
9/22/2018
Fixed Assets Section of Accounting Services

11. How does the fixed asset become an asset?
Therefore, a required list of appropriate expenditure account codes is used when the acquisition cost is greater than or equal to $5,000.
The capital account code you choose will create a capitalized and/or several non-capitalized Otag records that:
are to be joined by Fixed Assets staff for the complete asset over $5,000.
can only be removed by a Journal Voucher by Fixed Assets Accounting.
are assets to be permanently added to the Fixed Assets Module of the Finance database.
Click for title
Automated until stars are up.
Click for first paragraph and ledger graphic.
Click for second paragraph.
Click for Auditing statement.
Basically, our responsibility is to maintain records that reflects the actual physical equipment on campus as accurately as possible at the current time. This requires the cooperation of the custodian departments to provide this information.
We are part of Accounting Services under the Financial Services Dept.
9/22/2018
Fixed Assets Section of Accounting Services

12. Things to remember for purchases
Use EA for ‘Each’ as the Unit of Measure when purchasing assets with Quantity Unit Price.
2 @ $ EA
$11,734.00
9/22/2018
Fixed Assets Section of Accounting Services

13. Things to remember for purchases:
2. When all line items purchased create 1 asset, purchase with the same fixed asset capital expenditure account
If:
The combined items total $5,000 or more
Including shipping, handling, installation
and tax
NOT including extended warranties
or maintenance agreements
How: Use same expenditure account code in accounting block.
9/22/2018
Fixed Assets Section of Accounting Services

14. Fixed Assets Section of Accounting Services
Fixed Asset Example
Microscope with Laser
Requisition Line Items Cost Quantity Account
Frame $8, EA
Eyepiece EA
Stage , EA
Observation Tube , EA
SIM Laser Scanner 4, EA
Transmitted Light Detector , EA
Spectral Detection , EA
4th Channel , EA
PMT Detection Unit , EA
Fiber Port EA
Optional Software 4, EA
Shipping/Handling EA
Installation EA
Extended Warranty EA
TOTAL ASSET COST $40,774.93
REQUISITION TOTAL $47,273.93
9/22/2018
Fixed Assets Section of Accounting Services

15. Things to remember when purchasing Fixed Assets :
3. Any item purchased to be permanently added to, attached to, or installed into a previously purchased capital asset must be purchased using the same capital expenditure code used for that asset.
This includes equipment items such as a Handicap Lift for a Bus, Digital camera for a Microscope, but does NOT include expendable supplies such as copier toner or intangible assets such as software. (Contact Fixed Assets Department, if unsure.)
9/22/2018
Fixed Assets Section of Accounting Services

16. Fixed Assets Example: Bus with Handicap Lift
Installation 1,000.00
Total Cost $7,000.00
(To be installed into Asset N Bus)
9/22/2018
Fixed Assets Section of Accounting Services

17. Things to remember when purchasing Fixed Assets:
Extended Warranties
Maintenance Agreements
Service Contracts
Do not include in the asset cost
Do not use asset capital expenditure account code
Search by %Main% on FTVACCT: Use accounts for Maintenance Contracts
Search by %Support% on FTVACCT: Use accounts for Support Services.
9/22/2018
Fixed Assets Section of Accounting Services

18. Fixed Asset Example: Copier
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Fixed Assets Section of Accounting Services

19. Fixed Assets Section of Accounting Services
How we can help you!
Fax or scan quotes to us for help with correct account codes for fixed asset purchases before your requisition is entered incorrectly
Attend our workshop for all updated information, instructions, and policy changes. On UNCG Website, go to: Financial Services, Information, Workshop Registration, Banner Finance, A/P and Fixed Assets Workshop.
9/22/2018
Fixed Assets Section of Accounting Services