SUBJECT: |
Mass Purchase of Equipment and Other Durables
|
SOURCE: |
Capital Asset Management |
ORIGINAL DATE OF ISSUE: |
April 2008 |
DATE OF LAST REVISION: |
April 2008
|
CSOP NO: |
31.0 |
RATIONALE: |
To provide guidelines for the capitalization of equipment from mass purchases. |
CSOP: |
Equipment may be mass purchased in volume to receive volume discounts. A mass purchase is considered a volume purchase represented on one line item of a purchase order with a total cost that potentially represents multiple individual assets.
|
DEFINITIONS: |
Capital Equipment- must have an acquisition value of at least $5,000 and a useful life expectancy of one year or more. Equipment- The term “equipment” includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets. Systems- components that work together to perform one function. These components must be necessary for the system to function as a whole. Removal of any one component would result in the system not operating at the required capacity or for the intended purpose. |
CROSS REFERENCES: |
CSOP 1.0 Capitalization Rules
CSOP 8.0 Capitalization of Moveable Equipment Policy FIN-ACC-150 Ownership, Depreciation and Capitalization of University Assets |
RESPONSIBLE ORGANIZATION: |
Organizations that purchase capital assets. |