Capital Equipment is defined as a unit of equipment which costs $5000 or more. The cost of this equipment is depreciated over several years.

Each unit of equipment is assigned to an Equipment Custodian who is usually the Department Head or Operations Manager at the location of the equipment. These custodians are responsible to ensure that the equipment is properly utilized and accounted for until proper disposal. They are assisted by the Financial Services personnel who take an periodic physical inventory of capital equipment.

Capital Equipment Category Code Determination Flowchart

Purchase Requisition Line Item Capitalization Flowchart


  1. Account custodians initiate Capital Equipment purchases using an electronic Purchase Requisition. This request is first forwarded to the Budget Officer for approval and then on to the Purchasing Department. The account number being charged must include a category code of 8400. If the account custodian wants to use the budgeted funds in 8400 to purchase a different type of equipment than the one originally approved in the budgeting process, he must complete a Capital Equipment Change Form, including his supervisor's signature, and send it to the Budget Officer. Otherwise, the purchase request will not be approved.
    All appropriated budget requests for Capital Equipment must be processed as separate items during the annual budget request cycle. The requests for appropriated Capital Equipment items are submitted with stewardship review materials.
    A fixed asset number will be assigned to each captial equipnment item purchased. Capital items that are portable will have a "Property of BYU-Idaho" bar code tag physically attached to them.
  2. Account custodians initiate the purchase of Operating (non-capital) Equipment through the regular purchasing procedures. The purchasing requirements for Capital Equipment do not apply to Operating Equipment.

    • Operating Equipment is not placed in inventory for tracking by the University. "Property of BYU-Idaho" tags without and fixed asset number can be placed on the equipment.
  3. All portable equipment in inventory (category 8400) will be tagged with a BYU-Idaho bar code number when received or by a fixed asset specialist. An inventory count will be made periodically by Financial Services using bar code scanning technology. Equipment custodians will be asked to account for any missing equipment.
  4. Disposal of Equipment and Relief of Accountability procedures are found on the Surplus Sales website.

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