Recording Equipment in Banner Fixed Asset
Description
All controlled and capitalized equipment must be recorded in Banner Fixed Asset. In most cases, title of the equipment will vest to the University (State of Illinois). However, Federal sponsors may require retaining ownership.
For further guidance, please refer to:
OBFS Policies and Procedures, Section 12 Property Accounting
Equipment Constructed by the University (fabricated) -Drawings, designs, labor, component parts, materials, and supplies purchased for use in constructing a piece of equipment are initially recorded separately as fabricated equipment in process. When the construction of the equipment is completed and the equipment is placed in use, units must report its completion to UPAR using FABweb for addition to Banner Fixed Asset. When plant craftsmen construct the equipment as part of a stores or service operation, it is recorded essentially the same as equipment issued from storerooms https://www.obfs.uillinois.edu/equipment-management/equipment-acquisitions/
The chart below provides a quick reference of equipment characteristics for proper recording and tracking.
| Value Threshold and Useful Life of 1 year + | Description and Banner Account Code | Purchased with Sponsor Funding | Title for Ownership | Must Affix Property Label |
|---|---|---|---|---|
| $2,500 - $4,999 | Controlled, non-capitalized equipment; account code 127xxx | Federal, in whole or in part | University | University Banner Fixed Asset Label (Ptag) |
| >=$5,000 | Capitalized equipment; account code 163xxx | Federal, in whole or in part | University | University Banner Fixed Asset Label (Ptag) |
| >=$5,000 | Capitalized equipment; account code 163xxx | Federal dollars only | Federal title or conditional title1 to University if compensates government for its share exceeding $5,000 | University Banner Fixed Asset Label (Ptag) and Federal Equipment Tag |
| >=$5,000 | Fabricated equipment; account code 128xxx | Component parts and labor are purchased on sponsor funds in whole or in part | University | Once equipment is put into service - University Banner Fixed Asset Label (Ptag) and change account code to 163* |
| >=$2,500 - $4,999 if sponsor does not specify | Non-capitalized equipment; account code 127xxx | Non-federal funds | Review terms and conditions of award | University Banner Fixed Asset Label (Ptag) and sponsor provided inventory tag, if applicable |
| >=$5,000 if sponsor does not specify | Capitalized equipment; account code 163xxx | Non-federal funds | Review terms and conditions of award | University Banner Fixed Asset Label (Ptag) and sponsor provided inventory tag, if applicable |
1In general, equipment purchased on Department of Energy National Lab awards vests with the lab and/or funding agency. Departments are responsible for identifying these situations and contacting SPA to obtain a Federal Property tag.
Sample Property Tags
Inventory Equipment Physical Label
Equipment is $2,500 or more
Federal Ownership Equipment Physical Label
Equipment is $5,000 or more