Issuing a Banner FIS purchase order with a Capital account code

When an on-line purchase order is issued using the 40XXX account code (see PRO 202: Purchases), the Document Level Accounting flag must be set to null, which changes the PO to Commodity Level Accounting. This ties an accounting distribution to each commodity on the purchase order. When commodity level accounting is used, the accounting information and commodity value information feeds into the invoice and the Fixed Asset system ‘origination’ tag file (see below).

Issuing a Banner FIS invoice with a Capital account code

When payment is processed against a Purchase Order, the invoice defaults to the commodity level of the original document. If a direct-pay invoice is processed for equipment, it must also be processed on commodity level accounting with a 40XXX account code for each commodity that creates a fixed asset. The data from each commodity line automatically feeds into the fixed asset module, creating a temporary record (see Origination Tag, below).  The invoice must have text providing information from which the asset record will be completed.  This includes:

• The asset description, beginning with generic noun
• The Responsible Organization code (Department Org)
• Received date
• In use date
• Location (Building/Room number)
• Title-to Code
• Percent Used
• Condition (new, used)
• Acquisition Code (PF, PS, LP, etc.)
• Manufacturer
• Model number
• Serial number
• Manufacturer’s stock number
• Functional Use Code
• Grant/Contract Sponsor ID (if purchased on grant/contract funds)
• Responsible person (& PI Code, if used, as well as EIN)
• Note any important additional information, such as whether or not this is a trade-in or upgrade

If more than one asset is purchased on an invoice, information must be provided for each asset. Additional basic information for assets acquired on federal funds include quantity received, unit price and unit of measure, posting reference and date of transaction (see FAR 45.505-1). This information defaults into the asset record from the Banner FIS Invoice.

NOTE: When a capital asset and other items (supplies or minor equipment) are being purchased on the same invoice, care must be taken in the setup of the commodity line. The capital asset should have its own commodity line, and the related funding line should have only one account code - 40XXX. If the related funding line for a commodity is mixed between 40XXX and another account code, the asset record doesn't feed into the fixed asset module properly and the resulting origination tag must be disposed of, then recreated and capitalized.

Sample Text From a FIS Banner Invoice

Source of Funding

An asset may be purchased on multiple indexes as long as all funding sources default to a title code of SI (State-owned, insured). If the asset is purchased on a grant or contract that restricts ownership, then the entire purchase must be funded by that source. An asset may have accountability to only one grant or contract at a time.

Funding Distributions

Assets purchased on multiple funds will reflect those funds in the asset record. If multiple assets are purchased on an invoice with multiple indexes, and each asset is being purchased by a specific index, a commodity line must be created for each asset and tied directly to the specific index.

Origination Tag

Each commodity line from a FIS Invoice with a 40XXX account code creates a temporary record in the fixed asset module. This record is called an 'origination' tag (or 'O-tag'). The record number begins with a 'T' followed by 7 digits, and is the basis for creating the asset record. An origination tag must be created for each asset purchased on an invoice. It is no longer acceptable to issue a purchase order or invoice for 'one lot'. This will necessitate either one commodity line per asset, or multiple units under quantity if several of the same item are being purchased. (An O-tag is created for each unit when the quantity is more than one.) Property Management converts the O-tag number into a 6-digit inventory number and completes the inventory record with the information provided in the invoice text.

Attachments

An attachment is defined as a piece of equipment that is integral to the parent asset (they become one). When processing PO's and invoices the value of such items should be combined with the value of the parent, rather than listed separately. On occasion such pieces are backordered causing multiple invoices for one asset. In these cases, account code 40199 (Equipment Under Construction) should be used for all invoices. When all pieces have been received and payment processed, a journal voucher should be processed moving the cost to 40XXX. The journal voucher should have the necessary text to create the asset record. See PRO-Ex2: Completing a Journal Voucher for information on 'fabricated equipment'.

Freight and other capitalized expenses

As per the OUS policy defining an asset, shipping costs may be included in the capital value of an asset if the charges exceed $25. Installation costs should also be included in the capital value of the asset.

Since information from the PO/invoice feeds the Fixed Asset Module, the information should correctly reflect the physical reality of the asset. Shipping and installation charges should not be set up as commodity lines on the invoice. Instead they should be entered as 'additional amounts' to the primary unit.

Service Centers and Auxiliaries

The invoice payment process is a little more complex for service centers and auxiliaries. Please see the instructions in PRO 202: Purchases for the correct method.

Fabricated Assets:

• Fabricated equipment meeting the capital asset definition for OSU, or the threshold of the research sponsor funding the fabrication, must be recorded on inventory. (See PRO 210: Fabrication)
• During fabrication, costs are accumulated under 40199.  When the asset is completed and put into use, costs are redistributed to 40101.
• If the asset's construction isn’t finished within the first fiscal year, the expenses must be distributed to 40101, but left as a non-complete, non-depreciating record.
• When finally completed additional invoices are redistributed to 40101 with text to add to the value of the record and provide an in-use date or date of completion.
• Multiple invoices can be redistributed on one JV, and only two accounting lines are required, one crediting 40199 and one debiting 40101.  The invoices being corrected should be listed in the text.
• The text field must contain all the necessary information to create the asset record, including the start date of construction.  (This may not precede the start date of the grant or contract funding the fabrication.)  See PRO-Ex1 for required text. 
• On a constructed asset, the manufacturer would be ‘OSU Construction’ and there would be no model or serial numbers.  However, if any parts have unique numbers, these can be added as serial numbers for identification of the asset.

Note: Account code 40199 should be used any time there will be multiple payments for a single asset.  Situations may include:

• A vendor requires a prepayment,
• Parts may be back-ordered and invoiced separately,
• Freight may be invoiced separately.

Other Journal Voucher Entries on Account Code 40101:

Any journal voucher crediting or debiting the 40101 account code must have text explaining what action is being taken and referencing the inventory number of the asset affected.  If an inventory number has not yet been assigned, the original Invoice number used to purchase the asset should be referenced instead.

An item acquired by donation, transfer-in from another institution, loan, lease, or purchased on Agricultural Research or OSU Foundation funds (any method other than through FIS Banner) must be added to inventory if the value meets the capital threshold and/or the item must be insured by OSU. 

A Fixed Asset Data Entry form should be completed and submitted to Property Management for each item.  This form documents the same information that would ordinarily be provided in Banner for the completion of the asset record. 

• New or Change: Check “New”
• Cond: Check the condition code that best describes the item.
• Status: Check the status code that best describes the current status of the asset.
• Asset Tag Number: Leave blank.
• Component of: Enter Asset tag number if this item is a component of another unit.
• Description: Complete description of the asset, generic or common noun first.
• Department: Department responsible for asset.
• Orgn Code: Enter the organization code for the owning department.
• Location: Building and room number or appropriate Bldg/Room code.
• Sound Value: Market value of item (equipment that isn’t purchased should be appraised for its current fair market value).
• Replacement Value: Replacement value, if different from sound.
• Book Value: Same as sound value. Note: Only OSU-owned items have a book value – i.e. they are added to the investment in plant.
• Insurance Value: Amount item should be insured for, if different from Replacement value.
• Title-to: Check the appropriate title code designating ownership and insurance.
• Percent Used: Fill in the amount of time that the asset will actually be used.
• Banner PO: Leave blank.
• Banner Doc: Leave blank.
• Manufacturer: Fill in manufacturer’s name.
• Model: Fill in manufacturer’s model number.
• Serial Number: Fill in manufacturer’s serial number.
• Grant or Contract: Fill in if appropriate (government furnished property is usually accountable to a current award).
• How Acquired: Check the acquisition code that describes the method of acquisition.
• Functional Use Code: Enter the use code that describes the primary use for the asset.
• Responsible Person: Full name of the person responsible for the asset.
• PI Code: Enter the two-digit code to identify responsibility (if used).
• Rec’d Date: Enter date received (date OSU became responsible for the asset).  Leave tag date blank.
• In Use Date: The date the asset is put into service. This will be the depreciation start date for the asset. 
• Asset Funding Source: Leave blank.
• Explanation: Explain reason for transaction, or note any information that should become part of the asset record.
• Requestor Name: Name of person submitting the form.
• Requestor Phone: Phone number of person submitting the form.
• Date: Date of request.

Note:   This form may also be used to update information in the asset record.  In this event, check the "Change" box at the top of the form, enter the inventory number of the asset to be updated under "Asset tag #" and then fill in the appropriate line with the correcting information.  Be sure to complete the "Requestor” section.

Fixed Asset Data Form with Sample Data

Transfer From One Responsible Organization (Org) To Another

The asset transfer form is used to transfer assets from one responsible Org to another or to correct a department's Org code, should it change. Asset transfers between departments require signatures from both the requesting and the receiving parties.

1. [ ]Org or [ ]Sub-Org Only or [ ]Locn Only: Check "Org."
2. Asset Tag #: Enter the asset number of the item to be transferred.
3. Transfer From Org: Enter the Organization code for the department currently responsible for the asset.
4. Transfer from Sub-Org: Enter the two-digit code for the Principal Investigator (PI), if any.
5. Transfer from Locn: Enter the Location code currently showing on the asset record.
6. Transfer to Org: Enter the NEW Organization to which the asset is being transferred.
7. Transfer to Sub-Org: Enter the NEW two-digit code for the PI, if any.
8. Transfer to Locn: Enter the NEW Location code for the item.
9. Reason for Transfer: Enter the reason the request is being made.  If a transfer of funds is involved, include the journal voucher number.
10. Text Comments: If other information should be appended to the text field of the asset record, enter it here, including the name of the new person responsible for asset.  Identify which asset record the text should be added to if more than one asset is being transferred on the same form.
11. Requestor: Type or print the name of the person requesting the transfer, and have them sign above their typed name.
12. Phone: Enter the Requester's phone number
13. Date: Enter the date of the request.
14. Receiver: Type or print the name of the person signing for the property in the new Organization (could be responsible person, department inventory coordinator, or department head), and have them sign above their typed name.
15. Phone: Enter the Receiver's phone number.
16. Date: Enter the date responsibility was accepted.
17. Property Mgmt: Leave blank.  Property Management will sign and date when the transfer is entered into FIS Banner.

Departments may also use this form to correct locations or PI codes.

Fixed Asset Transfer form with sample data.

OSU Equipment Inventory FIXED ASSETS TRANSFER FORM REV 9/97 [X] Orgn          [  ] Sub-Org Only          [  ] Locn Only                                             Transfer From                                        Transfer To     Asset Tag #   Org   Sub-Org   Locn   Org   Sub-Org   Locn   Reason for Transfer 1 309512 300600 00 AD205 301300 07 AP315 Move to Electrical & Comp Engr 2 309513 300600 00 AD205 301300 07 AP315 “  “   “   “   “   “ 3 309514 300600 00 AD205 301300 07 AP315 “  “   “   “   “   “ 4                 5                 6                 7                 8                 9                 10                 11                 12                   TEXT COMMENTS:  These computers were in a lab that has been updated with new equipment. Computers have been made available to Elect & Comp Engr for graduate student use.  Responsible faculty member is Joshua Wagner. Requestor:        Melody Bonner                    Receiver:        Chas Tackler                    Property Phone: 7-9999     Date: 3/21/02      Phone: 7-9595   Date: 3/22/02   Mgmt:  ___

The PDR form is used to remove assets from inventory.  Property Management will complete a PDR for any asset disposed of through the Surplus Property program.  Property Management will also prepare PDRs for assets released by Contract sponsors that do not meet OSU’s capital threshold.  For other types of disposal; departments should complete this form, attach any necessary documentation, and forward to Property Management.  See PRO 800: Equipment Disposal for additional information on the disposal of OSU equipment.

• Type of Request: Check appropriate box.
• Department: Type department’s name.
• Agency No.: Type “580-300.”
• Unit or Division: Type “Oregon State University.”
• Date: Type the month, day and year the disposition is being initiated.
• Prop. Tag #: Leave blank.
• Inventory Number: Type the asset number.
• Quantity and Unit: Usually “1 Each.”
• Description, Location . . etc.: Type the following information from the asset record: Description, Manufacturer, Model, Serial number, Responsible Org number, Title-to code, How Acquired code, present location, and current condition code.
• Year Acquired: Type the year from the “Received Date” field of the asset record.
• Estimated or Inventory Value: Type the “Total Net Book Value” from the asset record. This is the depreciated value.
• Resale Price: For trade-ins enter the value of the credit offered by the vendor.
• We certify that the above is correct...: Explain the disposition of the asset.

1. Trade-In: include the vendor name, purchase order number if available, amount of trade-in credit, and a brief description of the new item being purchased.
2. Lost or stolen property: explain the circumstances of the loss and include the police case number, if any.  Attach a copy of the State Self Insurance Claim Report form (pdf).
3. Return to owner: include information on who the property has been returned to.  Attach a copy of the written instructions if property is returned to a third-party.
4. Transfer to another state agency: include specific information on the person and agency receiving the equipment, including address, telephone number and contact information.
5. Cannibalization: include information on the circumstances – was the unit non-functional?

• Signature of Accountable Person: Signature of the responsible person from the asset record, or signature of the departmental inventory coordinator.
• Date: Date signed by Accountable Person.
• Phone No: Accountable Person’s phone number.
• Signature of Department Head: Signature of the department head or designee.  Must be someone other than the person who signs as the "Accountable Person".  NOTE: OUS requires the signatures of two different signers (people) to sign the PDR
• Date: Enter the Date when Department Head signed the document.

Note:   Do not type or write in the lower one-third of the form below the two signature blocks.  Numbered Sections 1 - 4 are completed by Property Management.

 

The Intra-department equipment loan agreement is used to authorize and record the off site OSU-related use of university-accountable property. The form should be completed and signed by the borrower and the department head before the property leaves its university location. The original form is to be filed by the department; a copy should be forwarded to Property Management.   See PRO 701-01: Loaned Equipment To Employees for additional information on this type of loan agreement.

Complete the form as follows:

• Borrower: Enter the name of the person borrowing the equipment.
• Title: Enter the faculty rank or position.
• Off-Site Location: Enter the primary location where the property will be kept.  Note: some equipment will not be kept at a specific location, but will accompany the employee on business.
• Justification for off-campus use: Explain why the equipment is needed off-campus.
• Inventory # (if applicable): Enter the inventory numbers of the equipment that will be removed from campus.  If the item is not capital equipment, enter “none”.
• Description (include model#, serial# & condition): Enter identifying information for each piece of equipment that will be used off-campus.
• Borrower’s Signature: Employee must sign the form acknowledging that they have read the form and will abide by the terms of the agreement.
• Date: The employee should date the form.
• Department Name: Name of the Department responsible for the equipment.
• Period of Authorization (not to exceed two years) From and TO: The beginning and ending dates of the loan agreement.  Equipment should not leave campus until this form is completed.
• Insurance: The department must complete the statement at the bottom of the form noting who will be responsible (Borrower or Owning Department) for; (1) the deductible, should the equipment be lost, stolen or damaged while in the custody of the borrower, and (2) any loss or damage due to perils not covered by the State insurance fund.
• Department Head Signature and Date: The Department Head must sign and date all loan agreements.

The Form can be downloaded from the Business Affairs web site.

Intra-Department Equipment Loan Agreement for Employees with Sample data

Occasionally OSU property may be loaned to other universities or research institutions in support of cooperative research or some other cooperative activity.  Departments should contact the Property Manager (541-737-7350) for assistance in evaluating equipment to determine whether it qualifies for such a loan.  Any equipment qualified for loan should be recorded on this form.

Page 1:

NAME/ADDRESS (top of page): Type the name and complete mailing address of the institution borrowing the equipment.

Equipment Loan Agreement form with sample data (page 1)

Page 2:

To Be Completed by Borrower:

• Institution: Enter name of Institution
• Address: Enter complete mailing address of institution.
• Telephone/Fax: Enter the telephone and fax number for the contact person at the institution. (This should be a person in the Contracts or Property Management Office of the other institution.)
• Email: Enter email address for the contact person at the institution.
• Printed Name/Title: Enter the name and title of the primary contact at the institution.
• Signature: Signature of the primary contact at the other institution.
• Signature (PI/Borrower): Signature of the person who will be physically responsible for the equipment while on loan.

To Be Completed By OSU:

• Department: Enter name of department responsible for the equipment.
• Address: Enter the location for the department (building/room number for on-campus department or mailing address for off-campus department).
• Telephone/Fax: Enter the telephone and fax numbers for the primary contact person in the department.
• Departmental Contact: Enter name of the person coordinating the loan.
• Signature (Dean, Director): Signature of Dean or Director authorizing the loan.
• Signature (V.P. for Research): The Vice President for Research must sign off if equipment valued in excess of $25,000 is loaned to another institution.
• Signature (Property Management): Signature of Property Management staff approving the loan.

List of Equipment on Loan:

• Description: Enter a complete description of the item or items to be loaned.
• Inventory#: Enter the inventory number of any capital asset to be loaned.  (If non-capital, note “none”.)
• Fund: Enter the fund code from the funding source page of the Fixed Asset Record, if applicable.
• Purch MO/YR: Enter the month and year the asset was originally acquired.
• Purch $ Amount: Enter the original acquisition cost of the equipment.
• Title-To: Enter the title code from the asset record.
• Equipment Condition: Enter the code from the asset record, or note the current condition of the asset.

Statement of cooperative activity: Enter a brief explanation of the cooperative activity and how it will benefit OSU.

Date equipment will be removed: Enter the date the equipment will leave OSU.

Date equipment will be returned: Enter the date the equipment will be returned. This date should not exceed two years, although renewals are possible with the approval of all parties.

Equipment Loan Agreement form with sample data (page 2)

This agreement is used when property is loaned to OSU.  The completed agreement and signed exclusions page should be forwarded to Property Management.  If the property will be in OSU’s custody for more than 90 days and is to be insured by OSU, a completed Fixed Asset Data Entry (FADE) form should be attached as well.

Page 1

• Lender: Enter full name of individual or organization loaning the property to OSU.

Personal Property Loan Agreement with sample data (page 1)

Page 2

To Be Completed By Lender:

• Name: Enter full name of individual or organization loaning the property to OSU.
• Address: Enter mailing address of lender.
• Telephone: Enter phone number of lender.
• Date Object(s) Will Arrive: Enter month, day and year the property will arrive at OSU for loan.
• Date Object(s) Will Be Removed: Enter month, day and year the loan will terminate, not to exceed two years from the day the property arrives.
• Title of Exhibit (if any): Enter title, if loaned item is displayed.
• Name & Telephone of LENDER’s Insurance Co.: Enter name and phone number of the insurance company that insures the lender’s other personal property (either corporate or homeowner’s insurance).
• Will LENDER’s Insurance Company Cover Object(s)?: Check “Yes” if the lender’s insurance will insure the property while it is loaned to OSU; check “No” if the lender’s insurance will not insure the property while it is loaned to OSU.

To Be Completed By OSU:

• Department: Enter OSU department borrowing the equipment.
• Address: Enter address of the OSU department borrowing the equipment.
• Telephone: Enter departmental phone number of the department borrowing the equipment.
• Contact Person: Enter name of person coordinating the agreement for the OSU department borrowing the equipment.
• Is Insurance To Be Provided By OSU?: Check “Yes” if OSU is expected to insure the property, and “No” if OSU is not expected to insure the property.
• If yes, explain. . .: Follow instructions on the form.

Listing of Object(s) on Loan:

• Description: Enter complete description of property on loan (i.e., common or generic noun, manufacturer, model number, etc.).
• Serial number or ID No.: Enter manufacturer’s serial number or lender’s identifying number, if marked.
• Estimated value: Enter replacement value supplied by lender.
• Identification Numbers: Enter manufacturer serial number or other identifying number.
• Condition on Arrival at OSU: Enter lender’s and borrower’s estimate of condition.
• Examined By: Enter name of OSU employee who examined equipment and verified condition, identification numbers, etc.
• Title: Enter position title of OSU employee who examined equipment.
• Date: Enter date equipment was examined.
• LENDER: Legal signature of lender, and date of signature.
• Property Management: Signature of Property Management staff approving the loan.

Personal Property Loan Agreement with sample data (page 2)

TO BE COMPLETED BY LENDER: Name:____ELLEN HELMRICK__________________ Address:1450 NW Grant Ave.,Corvallis, OR 97330 Telephone:      (541) 752-7722                       Date Object(s) will arrive at OSU:    01/05/02     Date Object(s) will be removed:     05/31/02       Title of Exhibit (if any):__________________________________ Name & Telephone number of LENDER’S Insurance Co.   State Farm Insurance Co., (541) 758-6767   Will LENDER’S Insurance Company cover object(s)? Yes:___________ No:             X              .

TO BE COMPLETED BY OSU: Department:          FORESTRY                          Address  104 Peavy Hall                                Telephone:        (541) 737-4047                         Contact Person:       Eileen Gibby                      Is insurance to be provided to OSU?  Yes X No __ If yes, explain what direct or material benefit will accrue to OSU by the loan of this object(s). If personal property is being loaned to OSU for on-the-job use by LENDER, explain why OSU does not provide the equipment.   Equipment is not available within the department   and is only needed for a short term project.

LISTING OF OBJECT(S) ON LOAN:                 Description / Manufacturer / Model         Serial or ID No.      Value         Condition on Arrival at OSU   Cassette Recorder, Mitsubishi HS-U54, s/n U54009188M____$499.00___________Good_________ _Camera, Olympus 35mm SLR, s/n N/A___________________$250.00___________Good_________ ____________________________________________________________________________________ ____________________________________________________________________________________ Examined by:___Eileen Gibby_____________       Title:_Office Specialist II               Date:__01/03/02____ LENDER has read the Department of General Services, Policy Manual, “Exclusions” to insurance provided by OSU and understands what is not covered.  The parties have caused this Agreement to be executed as of the date of the last signature. ____Ellen Helmrick____________01/03/02      _______________________________________ LENDER                                   Date                 PROPERTY MANAGEMENT             Date NOTE: If OSU agrees to provide insurance, agreement must be signed by OSU Property Management.  Send to Property, Contract & Risk Management, 644 SW 13th Street, Corvallis, OR 97333-4238). Direct questions to Property Management at 737-7350.

 

Page 3

Personal Property Loan Agreement with sample data (page 3)

Page 4

• Signature: Legal signature of lender, and date of signature.
• Typed or Printed Name: Enter full name of lender, typed or printed.
• Telephone Number: Enter telephone number of lender.

Personal Property Loan Agreement with sample data (page 4)

Occasionally OSU leases OSU-owned equipment to outside organizations.  Equipment proposed for such lease agreements must be reviewed by the Property Manager to determine whether it is eligible for lease.  Once verbal approval is given for the lease, the form should be completed as indicated below and forwarded to Business Services for approval of the Contracts Office.  See PRO 702 Leased Equipment for more information on leasing OSU property.

Page 1

• LESSEE: Enter the complete name of the organization leasing the equipment from OSU.
• LESSEE agrees to provide OSU with the following compensation: Enter the money, goods or services the lessee is providing OSU in exchange for use of the equipment.
• LESSEE shall return . . . address: Enter the OSU address to which the property should be delivered at the conclusion of the agreement.
• OTHER: Enter any other terms desired for this particular agreement (subject to contract officer’s approval).

OSU-Owned Equipment Lease Agreement with sample data (page 1)

 

Page 2

To Be Completed By Lessee:

• Company Name: Enter name of company leasing the equipment.
• Street Address: Enter address of company leasing the equipment.
• City/State/ZIP: Enter City/State/Zip portion of lessee company address.
• Contact Person: Enter person responsible for the lease at the lessee company.
• Email: Enter email address of contact person at the lessee company.
• Telephone/Fax: Enter phone and fax number of the contact person at the lessee company.
• Date equipment will be picked up from OSU: Enter month, day and year.
• Date equipment will be returned to OSU: Enter month, day and year equipment will be returned (not to exceed two years from the date equipment is picked up from OSU).

To Be Completed By OSU:

• Department Name: Enter name of the OSU department responsible for the equipment being leased.
• Address: Enter department mailing address.
• Contact Person: Enter OSU employee in the owning department responsible for coordinating the lease.
• Email: Enter email address for the departmental contact.
• Telephone: Enter phone number of the OSU Contact Person.
• Department Head (Print): Enter name of Department head.
• Department Head Approval Signature: Enter signature of department head or chair approving lease.

List of Property on Lease

• OSU INV Number: Enter asset inventory number of the item being leased.  (If none, write “none”.)
• Description: Enter complete description of property on lease (i.e., common or generic noun, manufacturer, model number, serial number, etc.).
• Value: Enter replacement value of the item from the asset record.
• Receiving Inspection Date/Condition: Date the lessee inspected the property after receiving it, and condition of the property when inspected by the lessee.
• Examined for LESSEE by: Enter name of Lessee representative who examined the property, and date of examination.
• Returning Inspection Date/Condition: Enter date OSU inspected the property after its return, and condition of the property when inspected by OSU.
• Examined for OSU by: Enter name of OSU representative who examined the property, and date of examination.
• LESSEE: Enter signature of an authorized representative of the Lessee organization agreeing to the terms of the agreement, and date of the signature.
• OSU CONTRACT OFFICER: Leave blank. The Contracts Office will sign this agreement when approved.

OSU-Owned Equipment Lease Agreement with sample data (page 2)

BE COMPLETED BY LESSEE: Company Name:          Paradise Farm, Inc.          Street Address:        88000 Hwy 101, Box 298     City/State/Zip:             Florence, OR  97444       Contact Person:         Roy  Cob                         E-mail:              cobb@aol.com                          Telephone: (541) 786-2259  Fax:(541) 786-2529    Date equipment will be picked up from OSU:                        5/14/02                     Date equipment will be returned to OSU:                       6/13/02

TO BE COMPLETED BY OSU: Department Name:    Food Science & Technology  Address:     100 Wiegand Hall                             Contact Person:              Annie Avery                 E-mail:          annie.avery@orst.edu                    Telephone:        (541) 737-6485                        Department Head (Print):  Robert McGillicutty      Department Head (Signature):Robert McGillicutty

LIST OF PROPERTY ON LEASE:                                                                             Receiving                Returning OSU INV                                                                Inspection               Inspection NUMBER     Description (w/Model & Serial Numbers)    Value    Date/Condition     Date/Condition  313218     Blentec Mixer, m/n DM10028-JDV, s/n 94092               $10,650.00           Good          __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ (Additional items may be included on attached sheet)                     Examined for     Examined for                                                                                               LESSEE by        OSU by                                                                                              John Good                                                                                                 5/14/02        __________                                                                                             Name/Date         Name/Date The parties have caused this agreement to be executed as of the date of last signature:                                                           OSU Contract LESSEE:_____Roy Cobb      05/10/02            Officer_______________________________________                            (Name/Date)                                                 (Name/Date)

 

When university property (inventoried or not) is no longer needed by a department, an SPR form is completed and submitted to the Surplus Office.  If time is short, it may be faxed to 541-737-2170.  The Surplus Office will schedule a pick-up once the form is received. 

Page 1

• Date: Enter the date the form is being completed.
• Department: Enter department name (please do not use an acronym).
• Contact person: Enter name of the person who is the primary point of contact in arranging for the pick-up.
• Phone: Enter work phone number of the contact person.
• Call before pick-up? [ ]YES [ ]NO: Check the appropriate box to let Surplus know if an appointment is necessary.
• Inventory number: Enter the asset inventory tag number of the item, if any. If the item is not on inventory but has an old inventory tag on it, include the tag number anyway. If there is no tag number, put “none.”
• Item Description: Enter the description beginning with a common noun (e.g., “computer” or “motorcycle” rather than “Personal” or “Honda”), and including any key information about internal or external components and model number and serial number, if any.
• Does it Work? Y/N: Enter “Y” for yes or “N” for no.
• Location (Bldg Name/Rm #): Enter the building name (not the number) and the room number where the property to be picked up is currently located.
• Additional information/comments: If there is other information about this pickup, please put it here (e.g., “15-ft. python in room, enter with care”).  If there is insufficient space in this block for a message, leave the last few lines of "Item Description" blank and type the message there instead.
• Property Management Use Only: Please leave this area blank.

Donations: If the department wishes to donate equipment to another agency or non-profit organization, the box at the top of the form must be completed.  Add the department name, the name of the authorizing Dean, Director or Department Head and the date. (The authorizing person must sign.)  The organization receiving the donation should be noted, along with address, contact name and telephone number.  If there is not enough room on the form, submit on a separate memo attached to the SPR.

OSU Surplus Property Pick-up Request with sample data (page 1)

OSU Surplus Property Pick-up Request (page 2)

Page 2: If additional space is needed to list items for pick-up, complete this page and attached to Page 1.

When university property (inventoried or not) is no longer needed by a department, this form is completed and submitted to the Surplus Office.  This form can be completed on-line and sent to the Surplus Office via the web or email, or can be printed and then faxed or mailed.  The Surplus Office will schedule a pick-up once the form is received. 

Screen 1:

Complete all fields:

• Department Name (please spell out – no acronyms);
• Contact Person;
• Phone number;
• Call before pick-up?  Y/N;
• Email address of department contact.

Screen 2:

• Inventory number of item or “none”;
• Item Description including generic noun and other identifying information;
• Does it Work?  Y/N;
• Location (Bldg/Room#).

A copy of the completed form should be printed and retained by the department.

Note:   This form cannot be used for donations because an original signature from a Department Head, Dean or Director is required.

The Fixed Asset record now consists of 6 pages plus a text field.  Each page is a separate table in FIS Banner, which is why some information from page 1 repeats as a header on the following pages.  Here is a brief summary of the fields you may see on each page, and what they mean.  To look at an asset record in FIS, use query screen FFIMAST.

Fixed Assets Master Information                  (Page 1 of 6 of the Asset Record)

Origination Tag #:  The temporary tag that FIS creates from the Invoice commodity information that feeds into the Fixed Assets module.   An Origination Tag is necessary for creating an asset record and can be created under a special function for an Asset acquired in any way other than a purchase (e.g., gift, transfer-in).

Origination Tag Date:  The date the Origination Tag is created in FIS.

Permanent Tag #:  The 6-digit OSU inventory number, which the Origination Tag is converted into.

Permanent Tag Date:  The date the Origination Tag is converted into a regular asset record with a 6-digit bar code inventory number.

Primary Tag #:  Used to identify the Parent asset for a subordinate record (either “component of” or “attached to”).

Subordinate Type:  There are three subordinate types: None, Component, and Attachment.

• “None” indicates that the asset is not subordinate to another asset.
• “Component” indicates that this asset works in conjunction with another asset as a system.  Components are ‘stand-alone’ capital assets and have their own 6-digit Permanent tag number.
• “Attachments” are additions to a Parent asset.  They have a unique Origination Tag number, but have no Permanent tag number. They are linked in the FIS system to the Parent asset through this function.

System Status Code: This code indicates whether the asset is in use or disposed.  It also indicates the way the asset was acquired. 

• “I” = Invoice
• “N” = Non-Banner Procured Assets 
• “G” = Gift
• “L” = Loan
• “D” = Disposed

Capitalization Indicator – a null field indicates an uncapitalized asset which is an asset not owned by OSU, and not included in the Investment in Plant.

Unit of Measure: The grouping by which the asset is inventoried, such as EA for Each.  This code is tied to the commodity code.

Text Exists:  Indicates whether or not information is recorded in the asset’s text field.  The text field can only be accessed from the Master Information page via the ‘navigate’ button.

Sample Asset Text Screen

Tag in Use:  Indicates that some activity (adjustment or transfer) is in process affecting that asset record.

Gift Indicator: Indicates whether or not an item was gifted to the University.

Asset Description: The asset description, up to 60 characters, beginning with the generic or common noun.  This feeds directly into the asset record from the FIS invoice, and then is modified as needed.  Example: “Computer, Power Mac Model 8500/120 w/16MB.

Commodity:  This field now prompts off of the Purchase Order, and isn’t currently being used by Purchasing.  Disregard.

Asset Type:  This code comes from an OUS table and is used to group assets into broad, general categories (such as NO--non-expendable office furniture, NB--non-expendable laboratory equipment, etc.).  Each Asset Type is assigned a useful life, which drives depreciation on a given asset.

User Status Code:  Same as System Status Code.  Should be either “I” (in use) or “D” (disposed).

Insurance Value:  The value the asset is insured for.  This value is adjusted annually based on the Consumer Price Index.  If it is uninsured, or not owned by OSU and is insured by the owner, this value would be blank.

Market Value:  Market value of the asset, usually the same as Book Value.

Replacement Value:  What it would cost to replace the asset.   This value is adjusted annually based on the Consumer Price Index.    

Book Value:  The acquisition or fair market value of the asset. If the asset is gifted to OSU, the donor must set the value of the asset on the letter of acknowledgement.  Non-owned assets have no book value because they are not part of our investment in plant.

Cost:  Amount of initial commodity line from the invoice or invoices.  This field would also reflect the value if an asset was acquired as a gift.

Total Cost:  The total of all funding lines from the Parent tag & any Otags (attachments) to the asset record.

Net Book Value:  Total costs plus/minus adjustments to write-up or write-down the value of an asset, less depreciation. 

Total Net Book Value:  Total of parent record plus attachments, plus/minus adjustments and depreciation.

Fixed Assets Acquisition Information                  (Page 2 of 6 of the Asset Record)

Origination Tag:  Repeated from Page 1.

Permanent Tag:  Repeated from Page 1.

Acquisition Method:  This 2-character field is from an OUS table, and identifies how the asset was acquired (purchase, loan, gift, etc.) and, as applicable, the fund source (state, federal, other). 

Acquisition Date:   Date OSU gained title to the asset--typically this is the same as the date received, except for non-owned assets.

Make: This field is used to record the old FMS sub-account, PI, or LOC code number, which used to appear at the end of the inventory account.  It is a 2-digit code used to further sub-divide a department’s inventory below the level of responsible org. 

Model:  Manufacturer’s model number, if any.

Manufacturer:  This field is used to record the manufacturer of the asset, which is not always the same as the vendor in the case of third-party re-sellers.

Serial #/VIN:  Manufacturer’s serial number, if any, or vehicle identification number.

Part #/Vehicle Tag:  New field for a part number or a vehicle license plate number.

User Reference Number:  This field will be used for the Sponsor ID # for grants and contracts (the alpha-numeric grant or contract code the research sponsor uses to identify the research award on their records).  Research sponsors want this number to appear on any correspondence about the award.   The field can also be used for other information, like the Historic Property Number for antiques, or the name of the owner for equipment on loan to the university.

Barcode Number:  This field will not be used, as our barcode number is the inventory number.

In-Service Date:  Date the asset was put into service.

Last Inventory Date:  Records the date the asset was scanned during the biennial physical inventory.

Percentage Used:  The percentage of time the asset is actually in use.  This information is required by the state and by the federal government, to avoid unnecessary duplication of assets that could be shared.

Work in Progress: If the field is flagged (not null), the asset is currently under construction.

Condition Code: Current condition of the equipment. 

Title-To: This 2-character code comes from an OUS table and identifies who has title to the equipment.  It also shows whether or not the asset is insured (2nd character “I” means insured, “N” means not insured).

Disposal:  This 2-character code comes from an OUS table and identifies how the asset was disposed.  

Disposal Date:  Records the date an asset record is actually terminated.

Fixed Assets Procurement Information                  (Page 3 of 6 of the Asset Record)

 

Origination Tag:  Repeated from Page 1.

Permanent Tag:  Repeated from Page 1.

Vendor Code:  The data for this field defaults from the originating invoice.  The field includes the vendor code from the FIS vendor table, followed by the vendor name associated with that vendor.  The field is blank for records that cross-walked from FMS (the accounting system used prior to FIS Banner), or for assets acquired by means other than purchase.

Purchase Order:  Originating PO, if invoice was processed from a purchase order.

Purchase Item:  Not used.

Receiving Code:  Not used.

Received Date:  Date the department received the asset.

Invoice Code:  The payment document (e.g. FIS invoice or journal voucher, or the FMS check or journal voucher) used to pay for the asset

Invoice Date:  Transaction date of the FIS or FMS payment document referenced.

Invoice Item:  Not used.

Cancel Date:  Added by system when invoice is cancelled.

Credit Memo: Should always be null (N).

Installment: Should always be null (N).

Recurring: Should always be null (N).

COA (Chart of Accounts):  C = Oregon State University

Organization:  This code from the Organization Hierarchy Report (see FGRORGH) identifies the department responsible for the asset.  This is the ‘umbrella’ code for the entire department, not the subsidiary org code found in the FOAPAL line.  See list of current Banner Code: Organization Code on the Inventory Control web site.

Location:  The alphanumeric code that identifies the building and room in which an asset is located.  The first 2 characters of the code (prefix) usually identify the building, and the final three or four characters, the room number.   See list of current location code prefixes on the Inventory Control web site.

Grant:  This code comes from the chart of accounts for restricted funds, and is used to group together all indexes for a particular grant or contract.  

Custodian ID:  Employee Identification Number (EIN) for responsible person.

Equipment Manager:  Employee Identification Number (EIN) for departmental inventory coordinator.

Fixed Assets Funding Source Information                  (Page 4 of 6 of the Asset Record)

- -- -- -- -- -- -- -- -- -- Asset Funding Source -- -- -- -- -- -- -- -- -- --

CoA   Index    Fund    Orgn    Acct    Prog    Actv    Locn   Project 

The Asset Funding Source information shows which Chart / Index / Fund / Org / Account / Program (FOAP) combination(s) paid for each sequence of a particular asset.

Origination Tag:  Repeated from Page 1.

Permanent Tag:  Repeated from Page 1.

Sequence:  An asset that was paid from one invoice with one commodity line and one funding line will have only one sequence.  If there are multiple commodity lines, or multiple funding lines for a commodity, each will create a separate sequence.  These sequences correspond to the sequences on the Capitalization page. 

Document: The invoice from which the asset record was created.

Attachment Origination Tag:  This is the Origination Tag (Otag) created from each commodity line.  On the initial sequence, the Origination Tag number is located in the header.  Subsequent Otags are listed by the sequence number.  Each Otag can be looked up separately under FFIMAST.  A complete record is created for each Otag.

Cost:  The cost associated with the particular commodity line.

Percentage:  The percentage of the total asset value that this cost represents.

Fixed Assets Capitalization Information                  (Page 5 of 6 of the Asset Record)

Origination Tag:  Repeated from Page 1.

Permanent Tag:  Repeated from Page 1.

Change Sequence #:  If the asset is a Gift/Donation, the default for this field is zero.  This change sequence keeps track of any changes made to the capitalization accounting distribution, either on the Capitalization Information window of FFAMAST or through the Fixed Asset Adjustment form FFAADJF. 

Sequence #:  Corresponds to the sequence from the Funding Source Page.

Direct Asset Ind:  Information in this field signifies that a capitalization entry is present for the asset, and is included in the Investment in Plant.

COA:   C = OSU

Capitalization Fund:  The Investment in Plant fund code to which the asset is booked.  Assets purchased by service centers and auxiliaries are booked to the specific fund for the organization.

Equity Account:  E1001 (Net Investment in Plant)

Asset Account:  The appropriate Capital Asset Account code for the type of asset (A8011 for general equipment, A8012 for vehicles, etc.).

Accumulated Depr Acct:  The appropriate accumulated depreciation account code that corresponds with the Asset Account.

Bank Code:  B1

Attachment Otag Code:  Ties sequence to particular Otag.

Cost:  Amount from commodity line/FOAPAL for sequence.

Adjusted Cost:  Cost plus/minus adjusting entries (write-ups or write-downs) and depreciation.

Percentage:  Percent of total value of asset.

Accumulated Depr:  Total of accumulated depreciation.

Depr/Posting Ind:  Indicates that depreciation is posting or not.

Fixed Assets User Fields                                    (Page 6 of 6 of the Asset Record)

 

Origination Tag:  Repeated from Page 1.

Permanent Tag:  Repeated from Page 1.

Functional Use Code:  This 2-digit field is from an OUS table and is required by the federal government.  It identifies how the asset is being used at OSU (examples include IN--Instruction, DA--Departmental Administration, OR--Organized Research, OS--Other Sponsored Activities, etc.).

Include Equipment Reserve:  No longer used.  This field was used to flag assets purchased on equipment reserve indexes by auxiliary and service departments. 

The BANNER FIS software uses "accounts" or "account codes" to identify types or categories of expenditures.  An official detailed list of these codes may be printed off the FIS Banner Screen "FGRACTH". 

The following information is a brief description of the account codes most frequently used to pay for equipment acquisitions, upgrades, and repairs in FIS Banner, and when it might be appropriate to use them.  This information is a Property Management interpretation of the account codes, and is not intended to serve as definitions for these codes.

202XX Minor Equipment

When a purchase meets the definition of equipment in every respect EXCEPT its unit value, a 202XX account code should be used for payment.  Minor equipment is not included on the equipment inventory.  The generic account code for minor equipment is 20200.  Other more specific codes for minor equipment are:

20201 20202 20203 20204 20210 20215 20216

COMPUTERS SOFTWARE PRINTERS OTHER IT RELATED PERIPHERALS (Non Capitalized) OFFICE EQUIPMENT SPECIALIZED EQUIPMENT SPORTS EQUIPMENT

 

20250 Parts-Auto & Equipment

When replacement parts are purchased for a vehicle or other equipment, account code 20250 is used to identify the payment.  This code is not used to pay someone to repair equipment (see 23501), nor is it used for parts that extend the life expectancy or enhance the original function of the equipment (see 23505).

23501 Equipment Maintenance and Repairs

When a piece of equipment is repaired, account code 23501 is used to identify the service charge from the vendor who performs the repair. See 20250 for replacement parts. Code 23501 is not used for repairs that extend the life expectancy of the equipment or enhance the original function of the equipment (see 23505)

Equipment repairs do not increase the value of the equipment on inventory.  Sometimes researchers working with grant or contract monies will identify an expenditure as equipment when it should really be in this category.  Please double-check "upgrades" to see if they are repairs.

23505 Major Reconditioning of Equipment

When a major reconditioning of equipment extends its life expectancy by more than 2 years, account code 23505 is used. Equipment reconditioning does not increase the value of the equipment on inventory.

23514 IT Hardware Maintenance Contracts (tax reportable)

Expenditures for Information Technology hardware maintenance covered by maintenance contracts.

23522 Maintenance Materials

Use this account code for the purchase of items such as paint for building maintenance, nuts and bolts for equipment maintenance, and bark dust for intramural field maintenance.  Remember, this account code is for the purchase of a product or good, not a service.

24101 Equipment Rentals & Leases

Use this account code for the payment of equipment acquired by rental or lease.  Rented and leased equipment held for more than 90 days must be recorded on equipment inventory if OSU is responsible for insurance.  A Fixed Assets Data Entry Form (FADE form) is used to add the item to inventory.

28810 Interest Expense

When equipment is purchased on an installment plan, use account code 28810 for the interest portion of all payments. (The initial payment is made using the appropriate 40XXX account code).  Interest is not included in the value of the equipment because the equipment is inventoried at its full capital expenditure value when the initial payment is processed.  Interest expense must be identified separately from capital expense.

40101 Equipment

When general equipment meeting the equipment definition is purchased, the payment is made using account code 40101.  All funds expended using this account code must be accounted for by corresponding additions of value to the equipment inventory. 

Note on Upgrades: Sometimes a new part is purchased which the department wants to add to the value of an asset. (An example would be additional memory capacity for a computer.) These "attachments" may only be added to the value of an asset during the fiscal year in which the parent asset was purchased. Within that period, 40101 should be used to pay for the part with a text notation on which asset is being increased in value and what is being added (see PRO-Ex1: Creating an Asset Record from a Banner Invoice).  Additions made after that time period must be purchased as supplies.

40102 Livestock

Livestock herds are no longer capitalized.  If the value of an individual animal met the capital threshold it would be added to inventory.  Submit a Fixed Asset Data Entry form with appropriate back-up documentation for the acquisition.

40103 Art Work

Art work which is not permanently attached to buildings and meets the equipment definition for value and life expectancy is purchased on this account code and added to inventory.  Since account code 40103 does not create a temporary asset record, the procedure for inventorying this artwork is the same as the procedure for inventorying gift assets – submit a Fixed Assets Data Entry Form (FADE form) and attach a copy of the invoice or other backup documentation for the acquisition.

40104 Vehicles

This is a new account code (2003) in FIS Banner for self-propelled vehicles licensed for road use.  All such vehicles are capitalized and added to inventory, regardless of value. 

40111 Equipment Lease-Purchase

This account code may only be used with authorization from the university Contract Administrator.  See PRO 204: Lease-Purchase for additional information. 

40113 Principal Installment Payment

When equipment is purchased on an installment plan, 40113 is used for the principal portion of all payments after the initial payment (the initial payment is made using the 40101 account code). See PRO 203: Installment Purchase for additional information.  Interest expense must be identified separately from capital expense, see 28810 above.  40113 payments do not add value to the equipment inventory because the equipment is inventoried at its full value when the initial 40101 payment is made.

40185 Non-OUS Equipment

Use this account code when equipment is purchased from a grant account with non-state funds, is never possessed or controlled by any Oregon University System institution, and is insured by a third party instead of OUS.  The Office of Post Award Administration will audit each use of this account code. Equipment purchased with this account code is not added to the equipment inventory.

40199 Equipment Under Construction

When equipment is fabricated by departments other than service departments and is for use by OSU, the costs are accumulated on this account code. When fabrication is complete and the asset is put into use, a single journal voucher should be done to transfer these costs to 40101. Asset information should be provided in the text field of the journal voucher, see PRO-Ex2: Completing a Journal Voucher.

40201 Vessels

A vessel is a boat or ship with a hull that is 25 ft. in length or more.  When a boat meeting the capitalization criteria is purchased, use this code for the expenditure.  This account code does not create a temporary asset record in FIS Banner.  One of two options may be used for inventorying vessels:

1. Process the invoice on 40199, then JV to 40201, providing text for the asset record (preferred method),

   OR

2. Process the invoice on 40201, then submit a Fixed Asset Data Entry form to Property Management.

Agency-Owned

Agency-owned property is equipment in OSU's custody that is owned by an outside agency.  At OSU, the term is usually applied to federally-owned equipment that belongs to the federal agency sponsoring the research for which it was acquired.  It is recorded on the university's inventory as federally-owned property, and is insured by the federal government rather than by the State of Oregon.

Contractor-Acquired

Contractor acquired property is equipment bought by OSU with contract funds.  Title may vest with the sponsor or with OSU, depending on agency regulations and the terms of the individual contract.  Often title vests with OSU, but the sponsoring agency reserves the right to transfer title back to itself or to a third party at the close of the contract.  The Office of Post Award Administration supplies departments with information about how title is vested and checks the Banner invoice to see that the department has coded the equipment record accordingly.

Government-Furnished

Government-furnished property is equipment acquired by loan from a federal agency. Such property is usually furnished by the agency sponsoring the research, and is considered agency-owned.  At the close of the contract, the sponsoring agency may transfer accountability for such equipment to another contract or direct that the equipment be returned to the owning agency.

Federal Excess

Federal excess property is equipment, minor equipment, and supplies declared excess by a federal agency.  It is then made available to other federal government agencies through the federal excess personal property program administered by GSA.  Such property may be transferred to an eligible research contract, and is recorded and treated like other government-furnished property while it is in OSU's custody.

The transfers of federal excess property to OSU are usually coordinated through Property Management.  When federal excess equipment is no longer needed, it is re-excessed into the federal excess property