For accounting purposes, the unit cost is used instead of the total invoice amount. The unit cost is described in the Spend Category. Cost Centers are required to create requisition(s) with correct Quantity, Unit Cost, Extended Amount and Spend Categories to reflect Invoice/Quotation. To minimize the number of Accounting Adjustments (Journal Entries), re-posting, and reconciliations due to incorrect spend category usage, please utilize this document supplied by Property Control.
Business Asset Classification
To be classified as State-owned equipment an item must meet the following requirements:
• Equipment purchases with an acquisition cost of $3,000 or more. (Individual equipment items costing $5,000 or more will be budgeted as capitalized equipment, with no overhead charges).
• Item has a life expectancy of more than 1 year
• Item is owned by Georgia Tech, not the sponsor
• Item is not permanently attached to a building
• Firearms and vehicles are still to be tagged regardless of their value.
Equipment Spend Categories
Small Value Equipment (Equipment < $2999.99 or > $3000.00)
| Spend Category | Description |
|---|---|
| SC743100 | Equipment Purchase - Small Value - Non-Inventory (per item cost less than $3,000) |
| SC743200 | Equipment Purchase - Small Value - Inventory (per item cost $3,000-$4,999) |
| SC743500 | Furniture/Fixtures - Small Value - Inventory |
| SC744100 | Information Technology Equipment Purchase - Small Value - Non-Inventory (per item cost less than $3,000) |
| SC744200 | Information Tech Equipment Purchase - Small Value - Inventory (per item cost $3,000-$4,999) |
Sponsored Equipment (Equipment >$2999.99)
| Spend Category | Description |
|---|---|
| SC743300 | Equipment Purchase- Small Value - Sponsor Holds Title (per item cost $3,000-$4,999) |
| SC743301 | FAR Equipment Purchase Delivered to Sponsor (per item cost $3,000-$4,999) Sponsor Retains Title |
| SC744300 | Information Tech Equipment Purchase - Sponsor Holds Title (per item cost $3,000-$4,999) |
| SC843143 | Equipment Purchase Sponsor Holds Title (per item cost greater than $4,999) |
| SC843144 | SP Equipment Purchase Del. To Sponsor - Sponsor Holds Title (per item cost >$4,999) |
| SC843145 | FAR Equipment Purchase Del. To Sponsor - Sponsor Holds Title (per item cost >$4,999) |
Capitalized Equipment (Equipment > $4999.99)
| Spend Category | Description |
|---|---|
| SC843101 | Equipment Purchase GT Holds Title (per item cost greater than $4,999) |
| SC843131 | Equipment Purchase - Computers GT Holds Title (per item cost greater than $4,999) |
| SC843142 | Equipment Purchase Information Technology (non-computer) GT Holds Title (per item cost greater than $4,999) |
Special Equipment
| Spend Category | Description |
|---|---|
| SC743201 | Equipment - Weapons (Public Safety Only) $3,000-$4,999) |
| SC743202 | Equipment Purchase - Small Value - Motor Vehicle (less than $5,000) |
| SC841100 | Equipment Purchase - Motor Vehicle |
| SC714127 | Supplies and Material-Fabricated Equipment |
Lease/Purchase Equipment – (Select if GT is leasing the Equipment)
| Spend Category | Description |
|---|---|
| SC843102 | Capital Lease Equipment Purchase GT Holds Title (per item cost greater than $4,999) $3,000-$4,999) |
| SC843132 | Capital Lease Equipment Purchase – Computers GT Holds Title (per item cost greater than $4,999) |
| SC843146 | Capital Lease Equipment Purchase IT (non-computer) GT Holds Title (per item cost greater than $4,999) |
Proper Account Code Examples
| Description | Unit Price | Quantity | Ext. Price | Spend Category |
|---|---|---|---|---|
| HP ProLiant BL460c G7 Server | $2,975.44 | 7 | $20,828.08 | SC743100 |
| Dell PowerEdge R310 | $5,498.25 | 3 | $16,494.75 | SC843142 |
| Cisco 2960 Switches | $3,798.00 | 4 | $15,192.00 | SC744200 |
1) Please make sure to look at the quantity column to determine the proper Spend Category.
2) Freight charges should be added to the value of the equipment.
3) You are allowed to use multiple Spend Categories for a Campus Requisition in Workday.
An Asset May Have Multiple Parts
Sometimes an asset is not a single item but is comprised of several items. This configuration, known as a Host and Components, is considered as one asset. For example, a CPU, monitor, and keyboard are a “computer”, and added to the inventory records as one asset. The CPU is considered the Host, and the monitor and keyboard are considered components. Other components, such as memory boards or chips may be purchased later as an addition to the asset which increases its value. These items are recorded in Workday as component parts. All costs for components added to the host equipment should be combined into the host equipment cost under one asset ID and Tag number.
The following is a glossary of terms commonly used when discussing a host/component asset:
| Term | Definition |
|---|---|
| Host Equipment: | A stand-alone, independent item is called a host (the “main” item). This includes an existing piece of equipment with a CAE tag. |
| Component: | Any item(s) that goes into or belongs to a host. Components are a part of the host, and their value is added to the host’s value. Components are not issued a separate CAE tag number; they are referenced by the CAE tag number of the host. |
| Add-To: | A component that is purchased AFTER the host has been tagged. (If an item is an Add-To contact Property Control and provide the host (CAE tag number) information. Property Control will add the component value to the host. |
Component Scenarios to Consider
If a new component will be integrated into an existing tagged piece of equipment, the new component needs to have the same spend category as the tagged equipment. To know the value of the existing piece, contact your Financial Administrator. Before submitting the new requisition in Workday, be sure to answer the question “Is this purchase an addition to existing inventoried equipment?” in the Requisition Questionnaire. If yes, please provide the CAE tag number of the inventoried equipment to minimize research for approvers and Property Control.