Acquisitions Via Purchase Order

UCR's Inventorial Threshold

UCR and all other universities of the University of California system use an threshold of $5,000 to determine if an item of equipment should be on the universities inventory system.

How is Equipment Value Determined?

The acquisition value of equipment that determines if an item of property is inventorial or non-inventorial is based off rules established in the Accounting Manual. Below is a listing of items that are allowed to be capitalized on the inventorial accounts with the equipment purchased by the departments. This listing does not include training, equipment maintenance agreements, service agreements, warranties, or insurances that are not related to the equipments shipment so all of these cost are considered non-inventorial cost.


Accounting Manual - Plant Accounting - Costing and Reconciling Inventorial Equipment Acquisitions:
COSTING EQUIPMENT

The unit cost entered into the equipment inventory consists of cost for the following:

  1. Major items of equipment (less any discounts taken);
  2. Accessories needed to make the equipment usable;
  3. Installation, excluding cost for reassembling equipment dismantled for shipment;
  4. Freight, provided the amount was included in the invoice for major items of equipment. Also, freight charges may be included as a cost element where the charges represent a significant cost factor to the acquisition of the equipment, even if the charges are billed separately from that equipment.
  5. Taxes (sales, excise, use, duty); and
  6. Insurance cost to cover the equipment while in transit.

Non-Inventorial Equipment Accounts

Account
Description
720200
Non-Computer Equipment between $200 - $1,499 in value*
720205
Non-Computer Equipment between $1,500 - $4,999 in value*
770200
Computer Equipment between $200 - $1,499 in value*
770205
Computer Equipment between $1,500 - $4,999 in value*
*This is the total based on the total value per unit. This value can include the tax, installation, S&H of the property; this value does not include warranties or maintenance agreements

Inventorial Equipment Accounts

Account
Description
803130
Computer Equipment over $5,000 in value*
803150
Computer Upgrades over $5,000 in value*
803160
Fabrications**
803170
Equipment (Non-Computer) over $5,000 in value*
803180
Equipment Upgrades (Non-Computer) over $5,000 in value*
803215
Networking Equipment over $5,000 in value*
803220
Vehicles over $5,000 in value*
803240
Furniture over $5,000 in value*
*This is the total based on the total value per unit. This value can include the tax, installation, S&H of the property; this value does not include warranties or maintenance agreements
**Fabrications are special situations that are overseen by Equipment Management, please see the fabrications section for additional information

Inventorial Plant Equipment Accounts

Account
Description
873120
Plant Equipment (Non-Computer) over $5,000 in value*
873130
Plant Computer Equipment over $5,000 in value*
*This is the total based on the total value per unit. This value can include the tax, installation, S&H of the property; this value does not include warranties or maintenance agreements

Unique Transaction Accounts

Account
Description
803210
Equipment Sold Between Departments
*This is the total based on the total value per unit. This value can include the tax, installation, S&H of the property; this value does not include warranties or maintenance agreements