IUP artmark

Fixed Asset Justification

  • If at any time you have a question pertaining to what is or is not a fixed asset, please contact Michele Fatora at 357-4074 (Michelet@iup.edu). Having the correct GL/Account assigned correctly at the requisition point helps to streamline the entire ordering process.

    Two GL Accounts that reflect a fixed asset:

    • 740000 Equipment and Machinery (Example: centrifuge, laser, tractor, computer, vehicle)
    • 750000 Furniture and Furnishings (Example: desk, chair, bookcase, deskunit)

    Fixed Asset dollar amount:

    A fixed asset is any one item (or a system) with a purchase price of over $5,000 and a useful life of two or more years. This means the asset status is effective if the item (including all costs pertaining to its start up) is $5,000.01 and up.

    Purchase Price: This is the price that is included on one (1) purchase order

    Example:

    • Piece of Equipment ($4,500)
    • Software ($400)
    • Shipping ($150)
    • Total cost to get the item here and operation is $5,050—therefore, it is a fixed asset
    • Note: If the $400 software had been purchased on a separate PO, this item would not be a fixed asset

    Internal Items:

    If an item is an add-on, internal, or software, it is not a fixed asset.

    This includes switches, hard drives, etc., that may have a purchase price over $5,000 but cannot stand alone to work.

    General Rule to Remember:

    A fixed asset is a piece of equipment or furniture that can be used as a stand-alone item.

    Example:

    • Servers that are purchased with a price over $5,000
    • A computer system that is purchased on one (1) PO that is over $5,000
      • Computer $4,600 + monitor $500 =$5,100
      • Total cost of this system is $5,100—therefore, it is a fixed asset.
      • Had the monitor not been purchased, this would not be a fixed asset.
    • A system that consists of several pieces that make up one main item (this often involves the sciences and their equipment)
      • Detection system $4,000 + scanners 3 at $300 each = $900 = Installation/training $200 + freight $50
      • Total cost for this system is $5,150—therefore, it is a fixed asset

    Note: When a “system” is purchased, the main piece of the system is considered the main fixed asset and is assigned a fixed asset number. This is the piece of equipment that the serial number references. All accessories and components are considered sub-assets and are associated with the main asset.