CMP 430-24: Capital Equipment

To list and define the capital object and sub-object expenditure codes

Advantage accounting system

Sub-object Code Name	Code Number		Definition
	Object	Sub- object
Freight/Shipping	7830	05	Shipping or freight charges on capital purchases
Office Machines, Equip. & Furniture	7830	10	Desks, File cabinets, conference tables, typewriters microfilm/fiche equipment. (excludes computer equipment and copiers)
Office Furniture	7830	12
Classroom Furniture	7830	13
Conference Room Furniture	7830	14
Lounge/Commons Furniture	7830	15
Data Processing/Computer Equip.	7830	20	Mainframe, Personal Computers, Printers, Terminals, Monitors, Scanners, CD ROM, etc. Expansion boards, Memory chips, graphic boards, etc., are considered enhancements and will be capitalized as part of the original host computer system, if ordered on the same Purchase order, regardless of cost. "Betterments" (upgrades or enhancements) are defined as extensions, expansions, or accessories to existing capital assets which extend the useful life, increase the efficiency or change the asset's use, and will be capitalized if the additional costs total $5,000 or more.
Copiers & Educational Equip.	7830	30	Copiers (but not leases) and equipment used for educational purposes. Such as: musical instruments, athletic equipment, potters wheels, etc
Scientific/Medical Equipment	7830	40	Includes all scientific and engineering lab equipment and all medical and dental equipment. Ex., Microscopes, various testing meters, centrifuges, CPR dummies, dental scalers, balances.
Research equipment, tax exempt	7830	42	All equipment purchased for the purpose of performing research. The AZ legislature has exempted research equip. from state sales tax
Video and telecommunication	7830	50	Video related equipment (camcorders, TV monitors, VCR), cameras, projection equipment, sound systems, telephone equipment (central switches, cabinets, nodes, etc.)
Vehicles	7830	60	Motor vehicles (cars, buses, trucks, tractors, boats)
Maintenance and shop equipment	7830	70	Floor cleaning machines, vehicle maintenance machinery, Shop equipment. Ex. : floor buffers, engine analyzers, Plumber snakes, lathes, paint sprayers, band saws, mowers.
Capital installation/Labor	7830	80	Installation charges related to capital purchases only.
Other capital equipment	7830	90	Includes household-type equipment and other types of equip. not clearly defined in other Object/Sub-Obj codes. Ex., dining hall equipment, dormitory furniture, alarm systems
Non-Title Equipment	7830	95	ALL capital equipment purchased by a Sponsored Project acct. in which the granting agency retains title to the equipment and NAU maintains a custodial responsibility for the equip. Contact Sponsored Project Services for additional information. (Only Units starting with 3, R, or W should use this sub-object)
Library Acquisitions	7840	XX	Purchases of library acquisitions materials: reference books, periodicals, books, media, databases, contract binding, contract cataloging, etc. These codes should only be used by Cline Library and NAU Yuma library for additions to their collections. Other departments should use 7322-10, Educational and Classroom M&S. 10 Library Books 20 Periodicals 30 Government Documents 40 Maps 50 Micro film/Text 60 Media 70 Databases-CD 75 Databases-Access 80 Binding 90 Other Library Acquisitions
Collections and museum acquisitions	7850	XX	Art objects, displays, and other miscellaneous collections Donations are valued based on appraisal (fair market value at the time of the donation).  10 Special Collections (Specialized  library holdings not included in the general library holdings)  20 Art Work 30 Museum Acquisitions 90 Other capitalized collections
Intangible Asset - Purchase/License Cost (see CMP 140 - Intangible Assets)	7865	10 15 20	Software Websites Non-software Licenses
Intangible Asset Internally Generated Costs (see CMP 140 - Intangible Assets)	7867	10 15 20 25	Consulting Services Salaries Employee Related Expenses Other Implementation costs

Accessories or Components

Items purchased that add convenience or additional effectiveness to the primary unit being purchased and are shown as separate line items on the RX document.

Capital Equipment

Movable tangible property having a life expectancy of one year or more and a unit cost of $5,000 or more. All accessories or components with a unit cost of $5,000 or more associated with the host unit are also capitalized. Accessories or components with a unit cost less than $5,000 are charged to an operational object code. Refer to CMP 430-14, Noncapital Equipment, for a listing of noncapital object/sub-object codes.

NAU has established a university standard for microcomputer purchases. The following items are capitalized when ordered on the same purchase order and have an aggregate cost of $5,000 or more:

1. central processing unit (CPU)
2. keyboard
3. monitor

   and

4. operating system.

   Note:

   Operating system software does not include application software such as Excel or Word Perfect. These software purchases are charged to object/sub-object code 7320 20.

Intangible Assets - see see CMP 140 - Intangible Assets for capitalization thresholds

For additional assistance with capital equipment accounting concerns and coding, please contact John Rabe in the Comptroller's Office.