Recosted Equipment Transactions

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Distribution

Director of Fixed Assets Accounting

FA Administrator

Ownership

The Director of Fixed Assets Accounting is responsible for ensuring that this document is necessary, reflects actual practice, and supports University.

Overview

OSP may recalculate (recost) project costs at any time. When projects are recosted, a debit and credit entry is created for each transaction. IS sends recosted equipment transactions to the Mass Additions Table. Invoice equipment transactions are approved once a week (currently Wednesday night; may be changed in the future) during the “Supplier Invoice Approval” process then, sent to the Mass Additions Table. This produces duplicate equipment invoice transactions that should not be posted to Fixed Assets. Cost transfer equipment transactions should also not be sent to the Mass Additions Table and not posted to Fixed Assets. Processing and reconciling of recosted transactions is described in the following paragraphs.

Processing Procedures

When OSP recalculates project costs, the results are reflected in the “Interface Supplier Invoice Adjustments to Payables” report. This report is reviewed in the Finance Application Support Center (ASC). The Finance ASC will notify Accounts Payable and Property Accounting via email that recosted transactions were identified on the report.

Property Accounting will use the Request Log responsibility to retrieve the report and determine whether the recosted projects include any recosted equipment transactions. Property Accounting will note the PTAEO, cost, and description for the recosted equipment transactions.

Processing Recosted Invoice Transactions

The Supplier Invoice Approval process approves the invoices identified in the “Interface Supplier Invoice Adjustments to Payables” report. Recosted equipment transactions will be pushed to the Mass Additions Table the following day (currently the approval process is run in the Wednesday nightly processing and the transactions will appear on the Mass Additions Table Thursday morning). Property Accounting should delete all the recosted transactions on the Mass Additions Table.

For transactions that have an offsetting positive and negative amount, both transactions should be deleted and no additional processing is required.
For transactions that have only a positive or a negative amount, the single asset line must be deleted and a journal entry must be prepared that reverses the debits and credits.

NOTE: These transactions have the expenditure type that was remapped. Recosting causes the credit entry to be mapped to the original expense object code and the debit entry to the new asset clearing account object code. Generally, they also have an expenditure item date in FY 2002.

The correction journal entry will be a credit to the asset clearing account object code (17XX) and a debit to the old expense object code (7XXX). This will correct the reconciling difference created by recosting a remapped transaction.

Processing Recosted Cost Transfers

Property Accounting should not select identified recosted cost transfers when preparing equipment cost transfers for loading to the mass additions table. Recosted cost transfers can be identified using the PTAO information recorded from the “Supplier Invoice Adjustments” report. Recosted cost transfers should not be added to fixed assets since they are duplicate transactions.

For any one sided cost transfers, a correction journal entry will be prepared in a manner similar to the invoices without offsetting amounts. The journal entry will be a credit to the asset clearing account object code and a debit to the old expense object code. This will resolve the reconciling difference from recosting a cost transfer with a remapped expenditure object code.

Effective: 08/13/04

Revision: 2

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