Equipment

Equipment

Before assembling the fabrication, you must set up a special fabrication task in Oracle Financials. OSR can assist you with this task. When the fabrication is completed and ready for initial use, the fabrication is “capitalized” and subsequently tracked as an asset in Sunflower Assets and Oracle.

An equipment fabrication must meet all of the following criteria: 

  • be a unique, one-of-a-kind item, fabricated by Stanford 
  • the aggregate cost of materials, supplies, and components must be $5,000 or greater and is included as part of the acquisition cost for the completed asset 
  • the cost of associated labor is included as part of the acquisition cost reported for the completed asset 
  • upon completion, have a useful life of more than one (1) year; or, if on a NASA contract, two (2) years
  • Ongoing maintenance or repair costs are not included as part of the acquisition cost of the fabrication.

 

Details on Fabrications

  • The university must capture and report the costs of materials, supplies, components, and labor related to bringing the fabrication to completion for initial use.

  • Equipment fabrications, while a work-in-process, will be accounted for in Oracle Grants Accounting (GA). 

  • To facilitate the process, specific tasks must be established with the Project-Task-Award (PTA) setup in the GA system for each fabrication. 

  • Each fabrication on a Sponsored federal contract will require a FAB task on a capital project and a burdened fabrication task. The task number for both tasks will include the four-digit FAB number assigned by the PMO to facilitate reporting. 

  • Throughout the fabrication process, project personnel must appropriately charge expenses for materials, supplies, labor and other associated costs to each appropriate fabrication task. Upon completion of the fabrication, the tasks will be closed and total cost reported is included in the subsequent asset record. Please see the Property Manual, for details on the fabrication record. Additional guidance may be obtained from your University Property Administrator (UPA).

  • All directly related costs associated with a fabrication will be accounted for under the designated project tasks and will be available for sponsor reporting (see below for types of allowable expenses). Costs required to bring the item to completion shall be properly documented, supported and retained; supporting documentation shall be made available for audit upon request.

  • Upon completion for initial use, the fabrication is “capitalized” and subsequently tracked as an asset in Sunflower Assets and Oracle Fixed Assets. 

  • Changes made to completed fabrications are considered modifications and accounted for as a separate task. 

  • Stanford will not capitalize labor and other indirect costs associated with a fabrication; this information is collected and available for sponsor reporting and property management records only.

  • Ongoing maintenance or repair costs are not included as part of the acquisition cost of the fabrication.

 

 

Category: 
Equipment
Sitewide Category: 
Fabrication
Related Links: 
Property Management Manual - Fabrications

Equipment

When assets become excess to the needs of the University or the Sponsored Project under which they were acquired, they must be declared excess and the disposition process initiated. Disposition is the process by which property owned by or otherwise accountable to Stanford is permanently removed from active University records. 

Department personnel must inform their Department Property Administrator when assets are no longer needed. The DPA is responsible for preparing the excess items for disposal and initiating the excess request. The Property Management Office approves and coordinates the physical collection and final disposition of all excess property from Stanford departments.

Key points in this process:

 

  • Department personnel are responsible to inform the DPA when items are no longer needed or require disposal

  • The DPA is then responsible to generate an excess request in a timely manner, and ensure items are protected and secured while disposition is pending

  • For items in operable condition, an attempt should be made to re-utilize within the University. See the Stanford University Reuse Website for details on reutilization for Stanford department use only

  • Non-Stanford owned equipment requires Sponsor approval prior to disposal

  • Prior to declaration of excess, departments are responsible for the removal of proprietary or sensitive data from all data-holding devices or equipment

  • Excess items must be processed for disposal via PMO procedures

  • Sales must be processed through Surplus Property Sales (SPS)

 

Category: 
Equipment
Related Links: 
Property Manual Chapter 4.2 Disposition and Transfers

Equipment

For items acquired through Stanford’s purchasing process, the acquisition cost is the cost incurred for the initial purchase of an item. Various types of cost may be included in the acquisition transaction.  The table below show expenses included and excluded from the purchase price of equipment.  Both types of expenses can be included in a sponsored project proposal budget. Expenses included should be in the equipment section and expenses excluded in the "other costs" section of a proposal budget.

Acquisition Cost for Purchases of Stanford-Owned Property
 

Expenses Included

    

Expenses Excluded

  
  1. Asset cost
  2. Freight
  3. In-transit insurance
  4. Federal excise tax
  5. Sales or use tax
  6. Duty
  7. Vendor installation costs directly attributed to the asset
  8. Accessories (e.g., lenses, covers, etc.)
  1. Warranties
  2. Maintenance service agreements
  3. Installation services or other in-house labor provided by Stanford personnel
  4. Upgrades to the infrastructure of a building necessary for the asset to become operational
  5. Training costs
  6. Vehicle license and registration fees

 

  

 

Category: 
Equipment
Sitewide Category: 
equipment

Equipment

Use the iProcurement application within Oracle Financials to place requisitions for capital equipment online. Requesters may create a Standard Purchase Requisition or order from SmartMart.

Proper selection of an account number (also known as PTA-Project/Task/Award), expenditure type (ET), and purchase order category are critical to ensure accurate completion of the transaction.

All requisitions require routing to the appropriate financial approvers. In addition to financial approval, requisitions for the following require approval of a DPA:

  • capital equipment
  • sponsor-owned equipment or materials
  • equipment leases, loans, and donations
  • fabrication components

The following guidelines apply when acquiring equipment:

  • The acquisition of equipment and or supplies is based on an established need in support of Stanford related business. 

  • The acquiring organization must screen for available items to minimize duplicative acquisitions. 

  • Acquisitions are allowable, reasonable, allocable, and consistent and are allowed by the terms and conditions of sponsored agreements.

Stanford policy prohibits the use of Stanford Pcards, personal funds or personal credit cards to purchase capital equipment or material for fabricated equipment.

Category: 
Equipment
Sitewide Category: 
purchasing equipment
Related Links: 
Overview Buying and Accounting for Capital Equipment
Buy/Pay Guide
Administrative Guide Memo 5.3.3 – Purchasing Cards

Equipment

Capital equipment must meet all of the following criteria: 

  1. Acquisition cost $5,000 or greater

  2. Useful life of more than one year

  3. Individual, stand-alone, moveable, tangible item 

Key Points About Capital Equipment

  • The capitalization threshold for Stanford-owned equipment is $5,000.

  • Software acquisitions <$500,000 are not capitalized – they are expense items.

  • Title to equipment vests with either the University or with the project sponsor. Title does not reside personally with faculty or staff.

  • Title to gifted or donated equipment vests with Stanford University.

  • Accountability for Stanford-owned equipment resides with the Department.

  • Accountability for equipment on Sponsored Projects resides with the Principal Investigator (PI).

  • The acquiring organization must screen for available items to minimize duplicative acquisitions.

  • Responsibility for accurately coding acquisition transactions for equipment and approving funding sources rests with the originator and the approvers.

 

Category: 
Equipment
Sitewide Category: 
equipment
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