Definitions
Capital Equipment : Items with an individual
dollar value of $5000 or more and a life expectancy of at least
one year.
Upgrade: Used to describe an addition
to a piece of equipment that would allow it to perform a function
that the original equipment could not. (Capital Equipment, IACT
6730)
Replacement: Used to describe the replacing
of an existing asset for a like asset. The original asset still
performs the same function. (Non Capital, IACT 6085)
Repair: Used to describe a fix applied
to an asset that will make it function again. This could include
both parts and labor. (Non Capital Equipment, IACT 6265)
Trade-In: Used to describe the trading
of an existing asset on the purchase of a new asset. Under the
Actual’s model it is critical that the tag number(s), or mfg.
serial number of the asset being traded is noted on the requisition
at the time of ordering.
Computer Systems: These consist of
a processor (CPU), monitor, keyboard, mouse and any operating
system software. Printers are not considered part of a computer
system.
Furniture: These items must have an individual
cost of $5000 or more to be capital equipment. Probably not
many furniture items will end up being capital equipment.
Maintenance
Contracts: These are the contracts with companies to keep
the equipment repaired and in good working order. This is usually
an annual agreement and is not considered part of the capital
equipment purchase. (Non Capital Equipment, use IACT 6265)
