Asset Management
The asset management process, which is jointly administered by Inventory and Accounting, is in place to insure that UNL complies with government regulations regarding capitalization of equipment, land improvements, buildings, etc. This process involves specific coding of each asset so it can be capitalized and depreciated over its useful life. The information below will assist departments with identification and coding of assets. For additional questions, please contact Jenny Gilmore in Accounting at 472-1397 or Becky Hastings in Inventory at 472-2085.
What is considered an asset?
An asset is defined as long-term, tangible, property owned by the University that cannot be easily converted to cash and will be held for a long period. For most departments, this translates to equipment. The University of Nebraska capitalization policy states that all equipment purchased with a unit cost of $5,000 or more that has a useful life of more than one year is an asset and must be tagged/capitalized. Buildings, land and land improvements are also assets that are capitalized but not tagged. For more information on assets, see the University of Nebraska capitalization policy. Click here for information on equipment systems.
Choosing the Correct G/L for Your Equipment Purchase
The single most important thing a department can do to make the asset management process run smoothly is to use the correct G/L when purchasing equipment. Use this decision tool to assign the correct G/L.
| If the single item unit price of the item is <$5,000 | Use G/L from the non-capital listing |
| If the single item unit price of the item is >$5,000* | Use G/L from the capital listing |
| For upgrades to existing tagged/capitalized assets | Use G/L from the capital listing |
| For repair of existing tagged/capitalized assets | Use appropriate repair/maintenance G/L (525xxx) |
| For purchase of replacements parts/components for existing tagged/capitalized assets | Use G/L from the non-capital listing |
| For components of equipment systems | Use G/L 553820. |
* Not all associated costs on capitalized equipment are included in the capitalized value. Costs related to the purchase of capitalized equipment should be itemized separately on the purchase order and the corresponding G/L should be coded as follows:
- Capitalized costs include - the actual cost of the asset, shipping/freight, installation/labor (both internal and external charges) and insurance. Use these capital G/L's.
- Non-capitalized costs include - software, warranty agreements, consumable items (toner, syringes, etc.), supplies, training and travel expenses for training/installation. Use these non-capital G/L's where applicable.
The Equipment Tagging Process
When equipment is purchased that needs to be tagged/capitalized, the following process takes place:
- Inventory assigns the department, location and type code to the asset.
- Inventory assigns a UNL identification number to the asset and creates a tag.
- An asset record is created in SAP and Accounting sets the value of the asset.
- The identification tag is sent with a memo containing the asset information to the department.
- The department reviews the information in the memo and returns it to Inventory.
- The department securely affixes the tag to the item in an accessible place.
Yearly Inventory Listings
Annually, the Inventory Department generates and distributes an inventory listing to the departments for review. The departments should make any necessary notations regarding items that have been returned to inventory, transferred to another dept or items received that are not included on the listing. These inventory listings enable the University to maintain accurate records.
Biennial Inventory Audit
Every two years the Inventory Department will audit the departmental inventory by performing a physical inventory inspection. These inventory listings are subject to review by State and Federal auditors so it is very important they are accurate.
Asset Management Links
University of Nebraska Capitalization Policy
UNL Property Policy
Purchasing Orientation for Departments
Capitalizing Projects at Year End
