Account Codes For Capital Expenses

NOTE: For capital account codes 46xx, include only those items that individually cost $5,000 or more and have a useful life of two years or more. The $5,000 minimum also does not apply to equipment accessories which are attached to previously purchased capital items. Ancillary costs, such as transportation and installation, should be capitalized. Replacement parts or renovation which costs $5,000 or more and which extend the useful life should be capitalized.

In any situation where land, buildings, equipment, software, vehicles, etc., are obtained through a lease agreement, the determination has to be made as to whether the transaction constitutes a rental, capital lease or a non-capital lease. Four criteria must be examined. Refer to Exhibit B and Exhibit C for guidance in making this determination. If the transaction meets one or more of the criteria, it is a Capital Lease. The portion of the payment on a capital lease related to interest should be included in the capital lease code and not recorded as interest expense.

SFS

Description

3830

TEXTBOOKS AND SOFTWARE - FOR RENTAL TO STUDENTS

4420

LIVESTOCK

Cost of horses, cattle, hogs, sheep, fish, etc., for agricultural, breeding and research operations conducted by UW/state agencies.

4480

LAND (Include Grounds Number)

Land, easements, rights-of-way, other interests in land, recording fees, abstracts, property taxes associated with the purchase, survey fees of proposed land purchases, etc.

4485

LAND - CAPITAL LEASE (Include Grounds Number)

Cost of payments made for leased land when the lease agreement meets the criteria of a capital lease.

4490

LAND IMPROVEMENTS (Include Grounds Number in Sub Class field)

All expenditures for improvements to lands such as fences, stone walls, roadways, bridges, ditches, dikes, drainage systems, fish rearing ponds, sewage lines, wells, water mains, landscaping, special assessment for land improvements, septic tanks, outdoor lighting, etc. Include payments to architects and consultants (external and internal) for designs, plans and specifications. The Social Security number must be provided for payments to individuals and sole proprietorships, and the employer identification number must be provided for payments to partnerships.

DO NOT CHARGE: Do not charge tax reportable services to this account (Note: Services as used below and for all tax reporting purposes means services performed by a person, not services in the sense of Utility Services like electrical, gas, etc.). For services performed by Individuals, Sole Proprietorships, Partnerships, or Limited Liability Company (LLC), use Account Codes 2620, consultant services with contractual agreements (use code 2621), data/word processing services (use code 2610), housekeeping and janitorial services (use 2680), medical services (use 2630).

4510

BUILDINGS - NEW CONSTRUCTION

Costs associated to construct a UW owned building. Include fees paid to architects and consultants (external or internal) for designs. Use account code 2628 for design fees related to projects not approved. All transactions to 4510 require a building number in the class field. Building improvements and betterments should be coded to account 4520.

4520

BUILDINGS AND ATTACHED FIXTURES (Include Building Number in Sub Class field)

Costs associated with purchase or construction of University owned buildings, additions and betterments thereto, including payments to architects and consultants (external and internal) for designs, plans and specifications. Costs, which constitute a full betterment to a building, should be charged to this code. Examples include addition of air-conditioning, an elevator system, security system, sprinkler system (fire prevention), etc. (Refer to Exhibit A for guidelines relating to use of this code.) The Social Security number must be provided for payments to individuals and sole proprietors, employer identification number must be provided for payments to partnerships.

DO NOT CHARGE: Maintenance and repair costs, which do not add to the value of the building.

DO NOT CHARGE: Do not charge tax reportable services to this account (Note: Services as used below and for all tax reporting purposes means services performed by a person, not services in the sense of Utility Services like electrical, gas, etc.). For services performed by Individuals, Sole Proprietorships, Partnerships, or Limited Liability Company (LLC), use Account Codes 2620, consultant services with contractual agreements (use code 2621), data/word processing services (use code 2610), housekeeping and janitorial services (use 2680), medical services (use 2630).

4525

BUILDINGS AND ATTACHED FIXTURES - CAPITAL LEASE (Include Building Number)

Cost of payments described in code 4520 when the lease agreement meets the criteria of a capital lease.

DO NOT CHARGE: Do not charge tax reportable services to this account (Note: Services as used below and for all tax reporting purposes means services performed by a person, not services in the sense of Utility Services like electrical, gas, etc.). For services performed by Individuals, Sole Proprietorships, Partnerships, or Limited Liability Company (LLC), use Account Codes 2620, consultant services with contractual agreements (use code 2621), data/word processing services (use code 2610), housekeeping and janitorial services (use 2680), medical services (use 2630).

4602

EQUIPMENT - LABORATORY & CLASSROOM

Ion accelerators, multi-channel analyzers, refrigerated centrifuges, spectroscopy amplifiers, seismographs, spectrographs, etc.

DO NOT CHARGE: Lab and classroom equipment below $5,000, use code 3195.

4603

EQUIPMENT - MEDICAL

Cardiograph, electro-surgical unit, ophthalmoscope, electromyography, x-ray equipment, etc.
DO NOT CHARGE: Medical items below $5,000, use code 3195.

4604

EQUIPMENT AND FURNITURE - NON-WOOD

Purchase cost of all types of equipment & furniture, except wood (both fixed and moveable) that is not specifically identified in any other account code and has a unit cost of $5,000 or more and a useful life of at least one or more years. Accessory equipment purchased to be attached to a newly purchased capital equipment item should be charged to this code (even if the unit cost is less than the capital limit) if the accessory increases the value of the host component.

4605

EQUIPMENT AND FURNITURE - CAPITAL LEASE

Cost of payments for leased equipment & furniture when the lease agreement meets the criteria of a capital lease.

4620

COMPUTER EQUIPMENT INCLUDING DATA COMMUNICATION AND DATA/WORD PROCESSING EQUIPMENT - $5,000 OR MORE

Computer mainframe, tape drives, disk drives, mass storage devices, printers, readers, key punch machines, laser printers, terminals, mini/microcomputers, word processors and printers, lines, modems, communication cable and associated peripherals etc., whether purchased or under lease/purchase agreements. DO NOT CHARGE: Computer equipment below $5,000, use 3194.

4625

COMPUTER EQUIPMENT - CAPITAL LEASE

Cost of payments for leased equipment defined in code 4620 when the lease agreement meets the criteria of a capital lease.

4630

SOFTWARE PURCHASE - $5,000 OR MORE

All software or software license, which costs $5,000 or more.

4635

SOFTWARE - CAPITAL LEASE

Cost of payments for leased software when the lease agreement meets the criteria of a capital lease.

4640

FURNITURE - WOOD

Purchase cost of all wood furniture that has a unit cost of $5,000 or more and a useful life of two years or more, including workstations, desks, chairs, partitions, tables, bookshelves, etc. This information is necessary to comply with Wisconsin statutory reporting requirements. Institutions may devise their own criteria for making this determination.

4652

AUTOMOBILES

Purchase of new or used cars, station wagons, vans, buses, etc., when primary use is for conveyance of employees and students on public highways in performance of assigned duties. Include cost of permanently attached accessories that are not classified elsewhere, e.g., trailer hitch, spotlight, luggage rack, etc.

4655

AUTOMOBILES - CAPITAL LEASE

Cost of payments for leased cars, station wagons, vans, buses, etc., when the lease agreement meets the criteria for a capital lease.

4660

TRUCKS AND OTHER VEHICLES

Cost of new or used motorized vehicles such as trucks, farm tractors, boats, snowmobiles, all terrain vehicles, etc., when primary use is not related to passenger conveyance. (A vehicle is defined as a motorized device that travels from point-to-point on wheels, tracks, water, etc., under the control of an onboard operator).

4665

TRUCKS AND OTHER VEHICLES - CAPITAL LEASE

Cost of payments for leased trucks, tractors and other special purpose vehicles described in code 4660 when the lease agreement meets the criteria of a capital lease.

4670

EQUIPMENT - FABRICATIONS IN PROGRESS

Used to record the cost of component parts and/or direct labor when an equipment item with aggregate cost of $5,000 or more is to be fabricated over time (i.e. the item is not ready to put into service pending future costs). Component parts must be attached to, or internal to the completed fabrication. Direct labor must be hands-on assembly labor or direct supervision fo that hands-on labor and traceable to the specific equipment (e.g. Physical Science Lab charges). this is the ONLY capital (46XX) code for which it is permissible to code single items with cost less than $5,000.

4680

CAPITAL PURCHASES - INTER-INSTITUTIONAL AGREEMENTS

For use by the buying and selling institution for transferring the expenses and the credit. Must use Legacy Class Code.