Property Management Policy & Procedure Manual
Section 200: Equipment Acquisition
To define a procedure for the trade-in of university/sponsor owned capital equipment.
Units are permitted to trade all or part of an asset to reduce the cost of a new asset. All trades require prior approval from Property Management and must be fully documented in FIS Banner. Items acquired by trade are capitalized at their full value, not the amount after it was reduced by a trade-in allowance. Please see PRO 803: Trade-in of Equipment for additional information on trade transactions.
Exchange of an older piece of equipment for a reduction in cost on a new asset.
Note: If multiple assets are being traded there must be a specific amount for each asset – not a lump sum for all.
|Exception: If the traded item is not a capital asset, this process cannot be used as there is no way to return the proceeds (credit) to the unit through the ‘sale of asset’ function. In this case, the credit memo should reflect the same index as the invoice and use account code 06981 Sale or Trade-In of Assets to reduce the payment to the vendor. The new asset will be recorded on inventory at full value.|
One-to-One swap of equipment with no dollars changing hands.