Equipment (EQ) Module
ISRS Accounting Procedure
Purpose
Updated 4/11/17
To establish a framework that will provide the ability to validate asset purchases with entries in the
EQ module.
Recording equipment in the EQ Module
If the equipment is above the $10,000 threshold, it should be recorded on the EQ module.
Equipment below the threshold that is deemed "sensitive" should also be recorded on the EQ
module, to ensure the asset is included on system inventory reports.
While System Procedure 7.3.6 Capital Assets gives examples of sensitive items, each school should
exercise professional judgment when determining what other equipment below the $10,000
threshold is "sensitive" as to warrant being tracked through the EQ module.
Per System Procedure 7.3.6 Capital Assets, examples of sensitive items include, but are not limited
to, weapons (firearms, swords, crossbows, etc.), electronic equipment (computers, projectors, etc.),
and assets purchased with federal funds greater than $5,000.
Physical Inventory Requirements
System Procedure 7.3.6 part 4 requires an annual physical inventory of all assets with an
acquisition cost or value of $10,000 or greater.
Assets purchased with federal funds must be inventoried at least once every two years.
A physical inventory of all other assets maintained in the EQ/Capital Asset module must be
completed at least once every three years.
Upon completion of the physical inventory process, assets recorded on the EQ module should
match the inventory on hand. Missing assets should be recorded as disposed of. Assets on hand, but
not recorded in the EQ module, should be added.
Minnesota State is an affirmative action, equal opportunity employer and educator
Use of Supply & Equipment Object Codes
3000-Supplies and Materials (not for resale)
To record the purchase of supplies that are expended in use, therefore should not be entered on the
EQ module.
3001-Supplies and Materials - IFO/MSUAASF Contract
Same as the object code 3000 activity but specified for IFO/MSUAASF contract.
3002-Equipment Purchased as Supplies
To record the purchase of equipment with a cost below the capitalization threshold of $10,000 and
is not deemed "sensitive". (Object code 3006 should be used for recording sensitive items.) The
system is not designed to ensure this activity has a matching entry in the EQ module. Therefore, it
should be limited to equipment that is not required to be inventoried.
3003-Donated Supplies and Materials (not for resale)
To record the donation of supplies that are not capital assets, and therefore should not be entered
on the EQ module.
3004-Software Purchases
To record the purchase of non-IT or systems related software, below the capitalization threshold of
$10,000, and therefore not entered on the EQ module.
3005-Laboratory Supplies
To record the purchase of Lab/Medical supplies, that are not capital assets, and therefore should
not be entered on the EQ module.
3006-Sensitive Equipment Purchased as Supplies
To record the purchase or donation of equipment below the capitalization threshold of $10,000, but
is deemed "sensitive", therefore should be entered on the EQ module to enable tracking by the
EQ0025CP exception report and ensure the assets are included in system inventory reports.
4000-Equipment
To record the purchase of equipment valued above the $10,000 threshold. These assets must be
entered in the EQ module.
4001-Donated Equipment
To record the donation of equipment valued above the $10,000 threshold. These assets must be
entered in the EQ module.
4004-Equipment- Ancillary Expense (1099 reportable)
To record the 1099 reportable expenses, beyond the cost of the capital asset, incurred in order to
place the capital asset into service. These costs must be entered on the EQ module as part of the
cost of the original asset they relate to.
4005-Equipment- Ancillary Expense (non-1099 reportable)
To record the non-1099 reportable expenses, beyond the cost of the capital asset, incurred in order
to place the capital asset into service. These costs must be entered on the EQ module as part of the
cost of the original asset they relate to.
Reconciliation between ISRS Equipment and Accounting Module
EQ0025CP
The EQ0025 exception report allows for reconciliation between the ISRS equipment and accounting
modules.
The following will result in exceptions on the EQ0025 report, and will alert the user that a
correction in either the ISRS equipment or accounting modules might be necessary:
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Equipment over $10,000 entered on the EQ module, without a corresponding entry to
object code 4000 or 4001 on the accounting module.
Equipment over $10,000 recorded to object code 4000 or 4001 on the accounting module,
without a corresponding entry on the EQ module.
Equipment below $10,000 recorded to object code 3006 on the accounting module, without
a corresponding entry on the EQ module.
For questions or comments please contact Campus Assistance unit for additional information or
email at [email protected].