The value of property is the net amount paid through Accounts Payable which is the invoice price less all discounts (except trade-in allowances). Freight, on-floor delivery and installation costs are also included. Please note if software is purchased as part of/in conjunction with an equipment purchase, then its cost is to be included in the cost of the computer equipment.
Equipment on Capital Lease
The inventory value is the stated cash sales price at the inception of the lease.
All donated items must be processed through the Advancement Office. This office provides the necessary donation paperwork to the recipient department, who will complete the gift-in-kind form. For non-cash gifts and identity, the different offices may need copies of the gift-in-kind form. The Property Control Department should also receive any information that will aid them in recording the item(s) in the Fixed Asset Inventory System.
The Property Coordinator is responsible for tagging and recording the cost and physical attributes of these equipment items. The acquisition cost of donated equipment is recorded in the Asset Management System as the fair market value of the item at the time of acquisition. Only if the current value is determined to be greater than $1,000, should a UMass Lowell property tag be applied.
Fair market value will be provided to the Property & Asset Management Department by the Advancement Office.
Custom-Built Items & “Children”
A parent is defined as the main asset, like a printer, for example. A child is any component with a cost of $5,000 and above, such as a sorter for the parent printer. The child will have a different asset number, but will have the parent's asset number as a reference. Though the child will not need a separate tag, it will take on the parent's tag number, plus a dash and a number (-1, -2, etc., depending on the number of children). When the parent asset is retired, its children will be retired along with the parent unless it can be used on another device. (UMPO guidelines)
The valuation of fabricated equipment includes all identifiable costs such as drawings, blueprints, component parts, materials, and supplies consumed in fabrication, labor and installation.
Upgrade v. Replacement of Property
Property has “upgrade” status if a new purchase increases the capability or useful life of an existing product. The value of the item may be capitalized.
“Replacement” status indicates that an old unit has failed and is being replaced. A replacement is not typically capitalized.