FIXED ASSET MODULE PROCEDURES
All fixed assets received on or after July 1, 2001 are processed using $5,000 as the minimum capitalization
amount. Also, beginning July 1, 1998, all newly acquired computer equipment/software and telephone
equipment items are recorded with a useful life of three years instead of five.
Fixed asset records are created for items that are requisitioned using a Capital Expense Account. These are
expense accounts that are internally linked to an asset account. When an item, which is coded to one of these
accounts, is invoiced, an origination (temporary) tag is created. This tag will automatically be capitalized based
on the dollar amount. If the amount equals $5,000 or more, the system will debit the asset account and credit an
appropriate fund addition account in the NIP capitalization fund 8702.
Only origination tags (Otags) that are invoiced can be converted to a permanent tag (Ptag).
The Materials Control Department is responsible for receiving and physically examining the property acquired
from the vendor, ensuring that it is in good condition, and delivering the property to the appropriate department.
The staff verifies the packing slip, designates the item as “Received” in the Banner System, and forwards the
invoice to the Accounts Payable Clerk for payment.
The Materials Control Department is also responsible for assigning asset tag numbers to each item received,
updating the master asset files, maintaining all property records, conducting physical inventories on a periodic
and consistent basis, and sending yearly inventory reports to the custodian department. The Materials Control
Department notifies the Accounting Office of any adjustments that need to be made to permanent assets, i.e. an
increase/decrease in cost, deletion of asset, etc. The Accounting Office will make these adjustments.
Fixed asset items are physically tagged with asset tag numbers in the format of A$$ or B$$, where $$ is
a one-up number. For those items which cannot be