University Accounting implemented the Oracle fixed asset module in 2020. The new module will improve reporting and record assets on a timely basis. New capital natural accounts for moveable equipment are now required at the time of purchase (presuming capitalization criteria have been met).
Newly purchased equipment or additions* to existing assets that qualify as moveable equipment will be capitalized. The new capital natural accounts for moveable equipment are available for use in the system.
The process for moveable equipment/software is as follows:
- Units charge purchased item(s) to one of the capital natural accounts between 67041-67050.
- Property Management, upon review (if capitalizable), will add the asset to the new fixed asset system.
- If not capitalizable, Property Management will ask the units to move the expense to an appropriate account.
- Email: Fixed Assets Webinars - February 18, 2020
- Email: New Moveable Equipment Natural Accounts - January 29, 2020
- Email: Moveable Equipment Purchases - December 11, 2019
*Must be Rutgers-owned, have a life of more than 12 months, and cost $5,000 or more.
Disk Drive, CD Tape
254 Monitor 5 255 Printed Circuit Board (PCB) Chips, Memory, Card 5 256 Software 5 257 Printer, Plotter, Scanner 5 258 Card Reader, Keyp, Sorter, Verifiers 5 259 Miscellaneous Computer Equipment 5 280 Communication Equipment 5 300 Machinery 15 350 Tools 10 400 Kitchen and Dining Equipment 10 420 Custodial/Maintenance Equipment 10 450 Music Equipment 15 500 Laboratory Equipment 10 600 Furniture and Fixtures 15 700 Stage/Auditorium 15 800 Vehicles 5 801 Mobile Equipment 5 802 Boats 5 803 Boat Motors 5 804 Forklift & Accessories 5 805 Construction Equipment 5 806 Trailers 10 850 Farm Equipment/Lawn & Maintenance Equipment 10
You should be using them now. The new natural accounts became available/active in fiscal year (FY) 2020. Starting FY2021 (July 1, 2020), it is mandatory to use the new natural accounts and natural account 67040 will be disabled.
Prepare a journal entry to reclassify the charge to the appropriate account.
Refer to the “Class Code and Depreciation Chart” above. Please also discuss the natural account options with your business manager and/or send an email to email@example.com.
Contact the unit business office at firstname.lastname@example.org.
Typically, purchased assets have some type of standard warranty (frequently, one year). Extended warranties (two to five years) are not included in the capitalization process. Therefore, the warranty cost should be charged to another appropriate expense account.
If maintenance agreement is required to purchase the equipment, then it is included for capitalization purposes. For example, purchasing a server that a vendor is required to log in and maintains/apply patches.
Yes, as some assets require some consumables for initial startup. An example would be a copier; if delivered without ink and toner, the copier is not a working unit. The initial set-up includes the ink and toner for the copier to work part of total cost.
However, when you need to buy more consumables the following year, you should treat these expenses as regular supplies.