What Object Code to Charge When Purchasing Equipment
November 30, 2022
When making purchases, it is important to be aware if any portion of the purchase meets the criteria to be considered capital equipment. If the purchase meets our capitalization criteria, we need to follow OU Equipment Inventory policy 19.054 Equipment Inventory Control. This includes using specific object codes and tagging the purchased equipment. Please see the updated equipment inventory webpage as a resource when making purchases.
It is critical to properly charge the equipment to the correct object code as well. See the below chart for guidance:
Pay particular attention to the object code when purchasing equipment on a sponsored award to ensure it is identified properly in our accounting records. This also ensures that we tag the equipment as either University-owned or Sponsor-owned (Green tag vs Red tag) if the University remains in possession of the equipment. The following are examples:
University owns equipment and in possession of equipment. Use equipment object code if meets equipment threshold.
Example: The statement of work advises the equipment is being purchased and located in University space and the sponsor regulations advise the equipment title is vested with the University.
Sponsor owns equipment and University is in possession of equipment. Use object code 715210 EQUIP VESTED IN SPONSOR.
Example: The statement of work advises that the equipment is being purchased and located in University space and the sponsor regulations advise the equipment title is vested with the Sponsor.
Sponsor owns equipment and University is returning to sponsor at end of the project. Use object code 744700 RESTRICTED NONTAG EQUIP when it is non-capitalizable equipment. Equipment does not receive a red or green tag since the University will not be in possession of the equipment.
Example: The statement of work advises that the equipment is being purchased and located in University space and the sponsor regulations advise the equipment title is vested with the Sponsor.
Equipment built by University and University is in possession of equipment. Use object code 744700 RESTRICTED NONTAG EQUIP during the time period the equipment is being built per the statement of work. Once the equipment is complete contact finance.grants@ohio.edu for review and attach journal to correct expenditures to proper equipment object.
Example: The statement of work advises that the equipment is being purchased and located in University space and the sponsor regulations advise the equipment title is vested with the Sponsor.
For questions, please contact financecustomercare@ohio.edu.