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Capital/Non-Capital Equipment


Capital Equipment:


Capital equipment is defined as a single item (not invoice) that costs $5,000.00 or more, is freestanding and has a use life of one year or more. Please fill in box #17 on your Requisition entitled “Asset Control Unit #,” for all such purchases. Purchases of capital equipment with accounting distributions using a project number are subject to approval from Grants and contracts Accounting prior to encumbering funds and the order being placed.

Non-Capital Equipment:


The Property Accounting Office wants to inform you of the required changes to noncapital equipment account codes due to the recent revision of Policy 3-041: accountability for noncapital equipment. The revisions now include three categories of assets, physical inventory requirements of these categories are outlined below.

Mandatory Inventory:
Mandatory Inventory:
Noncapital equipment with an acquisition cost greater than or equal to $3,000 but less than $5,000.
Mandatory Inventory:
Mandatory Inventory:
All university-owned computers, laptops, tablets, and cell phones of any value less than $5,000 that may contain Personally Identifiable Information (PII) at any point during the university’s ownership of the asset.
Optional Inventory:
Optional Inventory:
Noncapital equipment having an acquisition cost or donated value less than $3,000 and having a useful life in excess of one year. Assets in this category are to be inventoried at the discretion of the departments or units, but not required.

Fabricated Equipment:


What is Fabricated Equipment?

Fabricated equipment is defined as scientific or other complex equipment comprised of several components that are fabricated/built into a single functional unit. Fabricated equipment is capitalized as a single asset for a combined total cost of more than $5,000 and a useful life greater than one year. Typically, these components would be purchased with separate transactions and may be from multiple vendors. All components must function as a singular unit and will be collectively disposed of at the end of the useful life of the equipment. Individual components cannot be used independently of the remaining pieces of fabricated equipment and cannot function separately apart from the fabricated unit to which it is attached.

Any questions about capital/non-capital/fabricated equipment should be directed to Property Accounting.