What account code and/or category code should I use when purchasing equipment?

See Financial Operations equipment page for a list of the account codes and purchasing category codes. 

Why is an asset not on my inventory report even though the item’s value is over $5,000?

If the item is new, it may not have been processed or added to the Asset Management Module yet. Generally, it takes one to two months after an item has been paid for for it to appear.

If the item is not new, it may have been purchased using a non-equipment account code. If the item does meet the equipment definition, contact Property Control with as much detail as possible, (purchase order number, project/grant) so they can determine why the item is not on the inventory.

Why is there an item on my inventory valued under $5,000?

This cost for this item was probably shared between several departments, and if so, will show up on several inventories. The listed value is what your department paid on this particular item. Infrequent reasons are:

If the cost was not shared, the item may be on your inventory because of the conversion of the previous Capital Asset System. All items from that system were put in the equipment category (EQUIP). Financial Operations balances the general ledger to make sure equipment totals are correct.

2) Prior to July 1, 1995 the EQUIP category included any movable equipment with a cost of $500 and up. Anything over $1,000 was tagged, and anything less was assigned a non-tag number. EQUIP is depreciable and recorded in University Financials as assets to the university. As of July 1, 1995 the EQUIP category includes any movable equipment with a cost of $5,000 or more.

Why are there are multiple lines on my inventory with the same information for the same item?

This cost for this item was probably shared between several project/grants, and if so, will show up several times on the inventory. To get the correct value of the equipment, add these lines together.

Our unit has items that I know have been sent to Property Disposition. Why are they still appearing on my inventory?

Financial Operations removes items from the Asset Management Module based on the information provided on the Declaration of Surplus Form and your department’s bi-annual equipment inventory. If the Declaration of Surplus did not contain the tag number or serial number, or you did not provide this information during your department’s bi-annual equipment inventory, equipment will not be removed from the Asset Management System. Please see the Property Control website for inventory instructions and the Property Disposition web site for instructions on how to fill out the Declaration of Surplus form.

Where should I send the corrected inventory, and who should I contact if I have questions?

Property Control can answer any questions regarding your inventory at property.control.inventory@umich.edu.

Can I have access to the Asset Management Module to make the corrections myself?

Yes! Property Control offers classes on the Asset Management Module. This course is required, along with completing the OARS process. Once you are granted access you can update all non-financial information about equipment within your department (equipment location, contacts, serial numbers). Contact Property Control for details.

Is it really important that I verify the rooms in which my equipment is located?

ABSOLUTELY! The depreciation on the equipment is expensed to the room and the activity identified for that room. If equipment is not identified to the appropriate room, the University of Michigan Office of Cost Reimbursement will not have accurate information for calculation and negotiation of the federal Facilities and Administrative Rate Proposal (often called the “Indirect Cost Proposal”).

It is especially important to assign valid and accurate room numbers to scientific equipment, since it tends to be more expensive and has a shorter lifespan than other types of equipment. Annual depreciation for these items tends to be higher than for general-purpose equipment. Because these items tend to be housed in research areas, it is important to the university to have the proper room number recorded in the inventory.

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