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Recording the Cost of an Equipment Item
All costs associated with the initial acquisition of an equipment item are recorded as the “total cost” of the item. The costs include any accessories, installation, shipping, and training expenses associated with the initial acquisition of the item. Service, repair, and/or maintenance contract expenses and the cost of supplies used for the operation of an equipment item are not considered part of the cost of the equipment item.
PROCEDURES and RESPONSIBILITIES
To insure consistency in inventorying and applying cost to items of equipment with various components (those that do not operate independently of one another, but as a system), one (1) DSU property number will be assigned to the equipment system and the cost of all of the components will be recorded against the one (1) property number assigned to the system.
Special consideration for the inventorying and the recording of costs for workstations (i.e. systems furniture) and computers is provided as follows:
For an original purchase of workstations one (1) equipment inventory number will be assigned to the purchase order. The bar code tag will be required to be filed with the department head, departmental property officer or other individual responsible for maintaining departmental property records. Property stickers will be placed on all work areas. This will require that all workstations purchased on that purchase order be located in one (1) department or building. If the purchase order is for workstations installed in different buildings one (1) inventory number will be assigned for each area or building. The appropriate cost will be assigned to each number. Any purchase of parts or labor to rearrange work areas will not be coded as equipment if the individual parts are under $500. Any costs coded as equipment will be added to the existing workstation’s cost.
External computer components that are classified equipment regardless of cost are central processing units (CPU) and printers. A personal computer monitor shall not require a unique inventory number provided the monitor is a part of the initial purchase as a system.
Replacement of personal computer monitors and other external computer components under $500 will not be classified as equipment. Printers are equipment regardless of cost.
All internal computer components acquired at the same time as the original acquisition of a PC should be classified as equipment.
All internal computer components and/or upgrades acquired after the original acquisition of a PC and with a total cost of less than $500 will not be classified as equipment. These types of purchases with a total cost of $500 or more will be classified as equipment. All internal computer component purchase requisitions should have the DSU equipment inventory number and serial number of the equipment item the components will be installed in.
Section 29-9-1 thru 29-9-21, Mississippi Code of 1972, Annotated