Adding an inventorial asset or pending asset to an existing inventorial tagged asset.
Click on a term below to view its definition. Limit the results by entering a search term.
Costs that are directly attributable to asset acquisition, such as freight and transportation costs, site preparation costs, installation costs and professional fees, that are necessary to place a capital asset into its intended state of operation. Ancillary costs are capitalized as part of the cost of a capital asset.
An agreement to spend a specific amount of money with a supplier over a period of time. Click here for details on when a blanket purchase order may be a better option than other ARIBA modules.
Combining certain items together as a system (one inventorial asset) as allowed by State and/or University policy.
Assets that meet the state's capitalization policy such as land, improvement to land, easements, buildings, leasehold improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in state operations and that have initial useful lives extending beyond one year. Capital assets do not include depletable resources such as minerals or timber.
A lease that meets one or more of the following criteria:
- Lease term is greater than 75% of the equipment's estimated economic life.
- Lease contains an option to purchase the equipment for less than fair market value.
- Ownership of the equipment is transferred to the University at the end of the lease term.
- Present value of the lease payments exceeds 90% of the fair market value of the equipment.
The value of future payments is significant to the University and requires recognition as a long-term debt in the University's annual audited financial report (as determined by Financial Reporting). A capital lease of equipment transfers all benefits and risks inherent in ownership to the University.
The custodian/user is the name of the person currently using the asset. The custodian is not the person that has the ultimate responsibility for all department assets (chair or administrator) or the person responsible for inventorying the assets. One exception is computer labs, where the custodian may be the name of the lab manager. The custodian must be a person not a job title or location.
Assets acquired by gift, donation, or payment of a nominal sum, which is not reflective of the assets' true market value.
Earned credit equipment results from in-store credit, or any similar type of credit based on accumulated spend. An equipment item acquired through earned credit is considered equipment if it meets the equipment definition (value greater than $5,000 and a life expectancy of more than one year).
The preferred method of purchasing at the University of Washington. Also referred to as ARIBA.
Tangible property other than land, buildings, improvements other than buildings, or infrastructure with a unit cost (including ancillary costs) of $5,000 or more which is used in operations and with a useful life of more than one year. Equipment may be attached to a structure for purposes of securing the item, but unless it is permanently attached to, or an integral part of, the building or structure, it is to be classified as equipment and not buildings.
The transformation of salaries, benefits, supplies and materials, services, equipment, maintenance, and/or travel into one or more items of customized capital equipment for University of Washington use.
A new form in the ARIBA system, used for reimbursing UW employees for expenditures made on behalf of the University up to $3,500.
The amount that could reasonably be expected to be received for an investment in a current sale between a willing buyer and a willing seller.
A gift is considered equipment if it meets the equipment definition (value greater than $5,000 and a life expectancy of more than one year). University departments are responsible for approximating the fair market value of a gift at the time of receipt. If the approximate fair market value is $5,000 or more and the life expectancy is more than on year, then the gift must be tagged and inventoried.
Equipment brought to the University for free use. Even though no payment is involved, other costs such as insurance and repair costs may be incurred and need to be covered by a loan agreement that has been negotiated and signed by the appropriate departmental authority (department chair, director, or administrator).
Also included in this definition are exhibits and demonstration equipment.
Sometimes referred to as a service contract, a maintenance agreement is an agreement which requires the specific performance of repairing, cleaning, altering, or improving of tangible personal property on a regular or irregular basis to ensure its continued satisfactory operation. (WAC 458-20-257)
Tangible property other than land, buildings, improvements other than buildings, or infrastructure with a unit cost (including ancillary costs) of less than $5,000 which is used in operations and with a useful life of more than one year. Non-inventorial equipment is not capitalized. For more information on tagging and tracking non-inventorial equipment, please go here.
An online tool in ARIBA used to make a payment to a supplier when a PO is not required and the invoice is under the "Direct Buy Limit". Non-PO Invoice provides users a convenient means of making quick payments as an alternative to Procard while providing the same visibility users have come to enjoy with ARIBA.
A lease that does not meet one or more of the criteria included in the Capital Lease definition. In addition, at the University of Washington, any lease where the cost of documentation, accounting and disclosure, and audit support significantly exceeds the benefit to University stakeholders will be accounted for as an operating lease, even if it otherwise meets the capital lease criteria. Generally, the present value of the lease payments needs to be $1M or more in order for a lease to be considered capital but Financial Reporting will help with the proper determination. Operating leases should be coded 03-XX with the sub object code range of 80-89.
An indication as to who is responsible for possible claims against the asset by outside parties (e.g., federal government, state, agency). Ownership tells who has the legal or rightful title to the property.
A University of Washington purchasing option. It consists of a Visa charge card utilized for most business related purchases, but it should never be used for personal expenditures. The card can purchase items up to $3,300 per transaction. The system includes an online (PaymentNet) method for transaction reviews and budget reallocation. It is available to any University staff or faculty with appropriate authorization from their Department Head and the ProCurement Card Administrator.
Assets that do not meet the state's capitalization policy but that an agency considers particularly vulnerable to loss, thus subject to special property control. At the University, this includes all weapons, firearms, and permanently attached accessories such as rifles, pistols, flare guns, net guns, tasers, rifle scopes, signal guns, line-throwing equipment, and animal control devices.
Items purchased from the Surplus Property Office Warehouse. These are viewed as being acquired from an outside vendor. They are considered equipment if they meet the equipment definition; current market value of $5,000 or more and an original life expectancy of more than one year.
Equipment item brought into the University or department from another university, agency, or another University department. Equipment transferred in is treated as equipment if it meets the equipment definition. University departments must approximate the fair market value of equipment transferred in at the time of receipt. Equipment that has an estimated fair market value of $5,000 or more, with a life expectancy of more than one year, must be tagged and inventoried.
Unit cost is the purchase price or fair market value of one piece of equipment and can include ancillary costs such as calibration, installation, freight, trade-in, and sales and excise tax.
An estimate of the total time that an asset is usable and in service.
Sometimes referred to as a guarantee, a warranty is an agreement which calls for the replacement or repair of tangible personal property with no additional charge for parts or labor, or both, based upon the happening of some unforseen occurrence, e.g., the property needs repair within the warranty period. (WAC 458-20-257)