Wednesday, October 18

Accounting Issues

Questions have been asked about several accounting issues related to purchasing. Below is some guidance about those issues.

Equipment vs. Supplies

Equipment vs. Supplies

Equipment is defined as an individual item with a cost in excess of $100 that has an expected life of one year or more. Equipment will have an object code of 7300 or 7410-7470, while supplies typically have an object code of 6110. Equipment with a cost of over $1,000 will be capitalized and reported to the State.

Supplies vs. Repair Services

Supplies vs. Repair Services

When a vendor makes a repair to an item, the repair object code 4300 shold be used. When Greater Clark employees purchase materials to make a specific repair, the repair object code should also be used. However, if multiple items are purchased that will be used to repair several items, those supplies should be purchased using the supply object code 6110.

Sufficient Funds

Sufficient Funds

There must be sufficient funds in the account to pay for the order, including the cost of any expected shipping charges. If there is not enough money in the account, a budget transfer should be initiated before the requisition is submitted or the scope of the order should be reduced so the cost of the order does not exceed the amount of funds available. On the “Submit Budget Transfer Request” screen, in the batch field, you need to enter your initials along with an identifying number (vw1). Each time you enter an individual transfer, you will need to increase the number next to your initials by one. This is needed because each transfer requires a unique batch number.

Correct Accounts

Correct Accounts

The correct account should be used for each purchase. Do not simply use an account because it has money available. If a budget transfer needs to be made, make the transfer rather than corrupting the integrity of the accounting system. If an order needs to be placed from an account that does not yet exist, work with the staff in the Business Department rather than temporarily using an incorrect account.

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