12.1.5 Enter Account Codes when Purchasing Equipment

Policy Statement

All equipment records in Banner must have an equipment account code that reflects the equipment’s classification. Banner Fixed Assets uses the account code to create a skeletal equipment record that can be accessed and updated in FABweb.

Reason for the Policy

To properly account for all equipment and ensure accurate financial and operational reporting, the appropriate equipment account code must be used when purchasing equipment.

Applicability of the Policy

All University of Illinois System purchased equipment

Procedure

To enter account codes when purchasing equipment:

The account code and the account code range reflect the type and cost of the equipment. If the account code does not match the cost of the item, units must submit a Journal Voucher to correct the entry. If a non-equipment account code or an incorrect equipment account code is entered, units will have difficulties processing a new acquisition in FABweb, conducting the biennial inventory for the unit, or responding to auditors' questions.

Select an account code based on the total cost/value of the item, which includes such costs as design and fabrication costs, freight, installation, and transit insurance. If the vendor accepted a trade-in, calculate the total value of the item as the cash spent plus the amount of the trade-in allowance.

1. Determine the correct account code to use. Consult Equipment Account Codes to determine the correct code for the equipment. Be sure to assess all equipment related expenses from the vendor to ensure the appropriate final total cost value of the equipment. See Valuation of Equipment and Property, 12.1.4 Determine the Value of Equipment or Property for asset type specific costs to include/exclude.
2. Enter the correct account code in the FOAPAL string when purchasing equipment using:
   • Banner Requisition
   • PCard
   • IBuy
   • Journal Voucher
   • Emburse Enterprise
3. If units are struggling with incorrectly account coded purchases, it is the unit’s responsibility to escalate this problem internally within the unit to resolve the accuracy of account coding issue between unit staffers assigned procurement roles and staffers assigned property management roles. Please reach out to University Property Accounting and Reporting for further assistance if needed.