Capital Inventory Additions

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Responsibilities of:

Responsibilities of Home Departments at Purchase Requisition

It is the responsibility of Home Departments to define a system of component parts when appropriate. See definition of a system for instructions on how to define a system of component parts. [Go to Definition Section] The following procedure reiterates the proper procedure from the definition section and should be used to requisition inventory systems.

  1. At the end of the purchase requisition, type the word "NOTE".
  2. List the PO line items that will make the system. Separate the items with commas.
  3. Insert 2-4 spaces after the number list.
  4. Indicate the number of systems with this configuration.
  5. Insert 1 space after the number of systems.
  6. Type the word "SYS".
  7. Start a new line for each new system configuration.

NOTE: If more than one vendor is used to purchase the component parts, a cover letter needs to be submitted with the requisitions to properly notify Purchasing of a system purchase that needs to be capitalized.

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Responsibilities of OIT at Purchase Requisition

All computer and computer related capital equipment purchases pass through OIT. It is the responsibility of OIT to initiate a Capital Inventory Addition Form for all pieces of equipment that, either individually or as a system, are valid capital inventory items.

It is the responsibility of OIT to define a system of component parts when appropriate. See definition of a system for instructions on how to define a system of component parts. [Go to Definition Section] The following procedure reiterates the proper procedure from the definition section and should be used to requisition inventory systems.

  1. At the end of the purchase requisition, type the word "NOTE".
  2. List the PO line items that will make the system. Separate the items with commas.
  3. Insert 2-4 spaces after the number list.
  4. Indicate the number of systems with this configuration.
  5. Insert 1 space after the number of systems.
  6. Type the word "SYS".
  7. Start a new line for each new system configuration.

NOTE: If more than one vendor is used to purchase the component parts, a cover letter needs to be submitted with the requisitions to properly notify Purchasing of a system purchase that needs to be capitalized.

The following items will always be entered on the Addition Form:

  1. The item description
  2. Contact person and department
  3. The manufacturer
  4. The model name
  5. The part number
  6. The vendor
  7. A listing of the parts of the system, if necessary, on the back of the form

If the form is photocopied, due to the purchase of multiples of the same item, then the photocopies should be stamped with an "ORIGINAL" stamp in red ink. All photocopies should have both sides of the form.

OIT should then initial and date the form in the "OIT P.R." box and pass the addition form on to Purchasing.

Responsibilities of Purchasing

Purchasing will initiate all Capital Inventory Addition Forms except for computer equipment purchased through OIT. OIT will initiate the Capital Inventory Addition Forms for computer equipment and pass them on to Purchasing with the corresponding purchase requisition. For all items other than computer equipment, it is the responsibility of Purchasing to make the determination whether the requested items are capital items which should be inventoried.

By the time the Capital Inventory Addition Form is ready to leave the Purchasing, the following information should be filled in.

  1. The item description
  2. The funding organization number(s)
  3. The purchase order number
  4. Contact person, department and telephone extension
  5. The manufacturer
  6. The model name
  7. The part number
  8. The vendor/donor, including vendor ID number
  9. A listing of the parts of the system, if necessary, on the back of the form

If the form is photocopied, due to the purchase of multiples of the same item, then the photocopies should be stamped with an "ORIGINAL" stamp in red ink. All photocopies should have both sides of the form.

Purchasing should then initial and date the form in the "Purchasing" box. Purchasing should then pass the Capital Inventory Addition Form with a copy of the corresponding purchase order to Central Receiving. Purchasing shall maintain a log of Capital Addition Forms issued.

Responsibilities of Central Receiving

When a capital inventory item is received, it is the responsibility of Central Receiving to assign a capital inventory tag to the item. Central Receiving will be issued a series of tags by Capital Inventory Control. If a tag is damaged, that number should be voided [Go to Voiding Tags]. Central Receiving should also keep a log book of the tag numbers assigned. The log need only have the tag number, the PO number of the item tagged, initials and a date.

  1. Procedures for Receipt of Capital Inventory Items

    Central Receiving will update the Capital Inventory Addition Form with the ID Tag Number issued, receipt date, and employee’s initials and date. Then attach the ID tag and Addition Form to the receiving slip and send all three items to the Home Department for item not purchased through OIT or to OIT for items purchased through that department.

    Before the Capital Inventory Addition Form leaves Central Receiving, the following should be present on the form:

    1. The ID tag number
    2. The receipt date
    3. The item description
    4. The purchase order number
       
  2. Outstanding Inventory Addition Forms

    Every April 1st and October 1st, Central Receiving should take a look at all outstanding Capital Inventory Addition Forms. Forms that are more than six months old should be sent to Inventory Control so that the status of the items can be determined. If the items have not been received by the home department, the corresponding Addition Forms will be returned to Central Receiving. If the items have been received by the Home Department, Central Receiving will be notified, by the home department to send the ID tag number and the Capital Inventory Addition Form to the home department.

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Responsibilities of OIT at Time of Delivery

Computer equipment purchased through OIT that meets the definition of capital equipment is handled differently upon receipt. OIT will be responsible for placing the ID tag on the capital item. [Go to Standards for Tag Placement.] If the tag is damaged in some way, the number should be voided and a new number issued. [Go to Voiding Tags] Contact Inventory Control for a new tag.

OIT will receive the original Capital Inventory Addition Form and the ID tag from Central Receiving. After the tag is placed on the equipment, the inventory addition form should be filled out. Before the Capital Inventory Addition Form leaves OIT, the following information should be present on each form.

  1. The tag number
  2. The receipt date
  3. The item description
  4. The purchase order number
  5. The building abbreviation from the table on the back of the addition form
  6. The room number
  7. The correct model name or part number
  8. The equipment serial number
  9. The correct system configuration on the back of the form if applicable

Initial and date the form in the "OIT Rec." box. Send the addition form to Inventory Control.

NOTE: Return of the Capital Inventory Addition Form to Inventory Control should not be delayed because of pending installation of equipment. If the equipment will not be installed within two weeks of receipt of the equipment, the equipment should be unpacked, the inventory tag affixed to the equipment and the serial number recorded. The equipment can then be repackaged for storage. The equipment should be assigned to the location where it is being stored. When the equipment is moved, a Capital Inventory Update Form must be filled out so the location of the equipment can be changed on the Capital Inventory Control System.

Responsibilities of Home Departments at Time of Delivery

When the Home Department takes delivery of a Capital Equipment Inventory item other than equipment purchased through OIT, the following should occur.

  1. If the item was delivered directly to the Home Department, Central Receiving should be notified immediately by the home department to receive the Capital Addition form and ID tag number. Central Receiving will then forward the necessary inventory forms and ID tag number.
  2. As soon as the item is unpacked, the inventory tag should be placed on the item. [Go to Standards for Tag Placement]. If the tag is damaged, the tag should be voided and a new tag issued. [Go to Voiding Tags] Contact Inventory Control for a new tag.
  3. After the tag is placed on the item, the following items on the Inventory Addition Form must be filled in.
    1. The building abbreviation from the table on the back of the addition form
    2. The room number
    3. The serial number of the equipment.
  4. Review all other information already entered on the Addition Form for accuracy.
  5. Initial and date the Addition form in the "Home Dept." box and return it to Inventory Control for processing.

NOTE: Return of the Capital Inventory Addition Form to Inventory Control should not be delayed because of pending installation of equipment. If the equipment will not be installed within two weeks of receipt of the equipment, the equipment should be unpacked, the inventory tag affixed to the equipment and the serial number recorded. The equipment can then be repackaged for storage. The equipment should be assigned to the location where it is being stored. When the equipment is moved, a Capital Inventory Update Form must be filled out so the location of the equipment can be changed on the Capital Inventory Control System.

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Responsibilities of Inventory Control

The Capital Inventory Addition Forms will be sent from the Home Departments or OIT to Inventory Control. The voucher number and the total item cost, including shipping, should be entered on to the Capital Inventory Addition Form. For systems of component parts, the item cost should be the total cost of all of the component parts. The voucher number for the system should be the voucher number for the main component of the system, which is described on the front of the Capital Inventory Addition Form.

A final check will be made by Inventory Control to ensure that all necessary information has been entered on the Addition form. If any information is missing, Inventory Control will return the form(s) to the appropriate department for completion.

Inventory Control will enter the Profile ID, Asset Class, account code, fiscal year, and title holder on the Capital Inventory Addition Form. Inventory Control will then initial and date the addition form to signify that the form was processed.

Every six months, Inventory Control will assist Central Receiving in checking on the status of long outstanding Capital Inventory Addition Forms and following up on same forms.

  1. Outstanding Inventory Addition Forms

    If the item remains encumbered for an unusual period of time, the home department should be contacted to see why that item has not been paid for.

    If the purchase of the item has been canceled and a tag number has already been issued, the Capital Inventory Addition Form should be forwarded to Inventory Control with a memo that the purchase of the item has been canceled and the ID tag number should be voided.

    Periodically, Inventory Control should take a look at all outstanding Capital Inventory Addition Forms. If the items have not been received by the Home Department, the corresponding addition forms will be placed in a pending file. If the items have been received by the Home Department, Inventory Control will issue the tag number to the Home Department.

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Responsibilities of Data Entry

The data on the Capital Inventory Addition Form is then ready to be entered into the Capital Inventory Control System. The entering person will enter the data from the form, initial and date the form. The forms, after entry, should be filed by inventory number as a record of tag issue.

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