This account will include charges for computers, computer systems consisting of the CPU, monitor, keyboard, printer, and any software costs included with the system at the time of purchase.

Cost:  Between $1,000 and $4,999

These computer systems will appear in the equipment inventory, but will not be capitalized or depreciated.

Use account 614000 for computers costing $5,000 or more.

Will be automatically added to the Asset Management System through the interface between Asset Management and Procurement.

This account includes the cost of photocopiers, fax machines, and printers.

Cost:  Between $1,000 and $4,999

These items will appear in the equipment inventory, but will not be capitalized or depreciated.

Use account 614000 for copiers, fax machines, and printers costing $5,000 or more.

Will be automatically added to the Asset Management System through the interface between Asset Management and Procurement.

Items costing less than $5,000 and not meeting the definitions for accounts 614390 and 614510

These items will appear in the equipment inventory, but will not be capitalized or depreciated.

Will be automatically added to the Asset Management System through the interface between Asset Management and Procurement.

Use for classifying assets with a useful life exceeding 2 years:

The following items should be excluded from account 614000:

*	Equipment rental or use charge (ex. payments to external vendors for copier rentals).
*	Small items costing less than $5,000 and which are not considered parts of larger pieces of equipment (ex. refrigerators costing $500).
*	Equipment purchased by a Federal Fund that will revert to the Federal Government at the end of the grant.  (see account 614300)
*	Test vehicles or crash vehicles for UM Transportation Research Institute (UMTRI) whose useful life is 2 years or less.
*	Items whose per unit cost exceed $5,000, but whose useful life is less than 2 years or for some other reason should not be considered as equipment (ex. glasssware, laser tubes, etc)
*	Items that become part of University Library's inventory should use account 615590, including books, manuscripts, and rare documents regardless of their cost.
*	Value of trade-ins should be classed at 614360.
*	Account 614000 should not be used in the following funds: Agency Payroll Unallocated Receipts University Investment Pool, Endowment, and Funds Functioning as Endowment Funds Plant Financing and Plant Asset Funds Unitrust Tax Basis Student Loan

Used in cases of fabrication when the estimated non-labor cost will exceed $5,000.

A separate chartfield combination is established to accumulate all non-labor costs for eventual capitalization to one line item on the Equipment inventory.

Used to record equity payments on Xerox equipment

Used to accumulate monthly miscellaneous installment payments.

Used to record the principal portion of installment payments on equipment purchased through the internal loan program.

Replacements of portions of equipment, which expenditures do not significantly alter the capitalized value.

Cost:  Must be $2,000 or higher.  (Purchases under $2,000 would use account 615560).

Components or modifications that increase the value of existing equipment by changing its performance capabilities.

Cost:  Must be at least $2,000

Examples:  Computer chips, boards, and larger storage units

Used for equipment whose title may revert under some named condition to an outside sponsor, usually a Federal agency.

Will be automatically added to the Asset Management System through the interface between Asset Management and Procurement.

Used if two or more chartfield combinations share the cost of an equipment purchase.

The chartfield combination contributing the greatest share is charged for the whole purchase, usually at account 614000.  

To record the equipment distribution, debit the sharing chartfield combinations at account 614030 and credit the chartfield combination from the above bullet at 614030.

Do not use this account number in Construction Fund.

Use only for books and manuscripts that become part of the useable inventory of the University Library or its branch libraries.

Do not use for printed materials charged to research grants, expendable restricted project accounts, or dormitory accounts when such items will not become a part of the University Library System.

Printed materials purchased for the benefit of clubs, individual professors, special projects, or departmental libraries are not considered as equipment.  Use account 615200.

Used when the University purchases equipment, but title to the equipment will rest with the sponsor.

Use of the equipment will remain with the intended project until the sponsor calls for it.