When entering information on the Asset Global document for gifts, found assets, transfers in, and state excess assets, the initiator supplies the account number, object code, and the fair market value of the item. Accounting entries are then created based on the financial information provided. The affected account will show offset entries to the expense object code entered on the document and an income object code assigned based on the Asset Acquisition Type Code entry:
• 4997 - Found
• 1175 - Gift
• 1185 – Capital Transfer-in Federally/Other Owned
• 1175 - Transferred from Other University or Federal
Example: A department receives a projector as a gift from IBM. The gift is valued at 5,000.00.
Account information is entered on the Asset Global document with an Acquisition Type of G- Gift.
• General Ledger pending entry generated by the Asset Global document:
Account |
Object Code |
Object Code Description |
Debit |
Credit |
1912610 |
7700 |
GIFTS OF CAPITAL EQUIP |
5,000.00 |
|
• System-generated by the Asset Global document:
Account |
Object Code |
Object Code Description |
Debit |
Credit |
1912610 |
1175 |
CAPITAL EQUIPMENT GIFT |
|
5,000.00 |
• Capitalization process entries (system-generated by the GL Scrubber):
Account |
Object Code |
Object Code Description |
Debit |
Credit |
9510092 |
8610 |
CAPITAL EQUIPMENT |
5,000.00 |
|
9510092 |
9899 |
FUND BALANCE |
|
5,000.00 |
Note the following:
• The proper plant fund account number is determined by both the financial object code sub type and the organization code of the account. Within Kuali Financials, each account number is assigned to an organization and each organization is assigned two plant fund account numbers.
• The Organization plant fund account number is used in the capitalization process when movable equipment items are purchased.
• The Campus plant fund account number is used in the capitalization process when non-movable capital items are purchased.
• In the example above, the only information supplied on the Asset Global document was account 1912610, object code 7700, and the amount 5,000.00. The remaining entries were generated by the Asset Global document and the G/L capitalization process.
• General Ledger entries are not created for capital assets with Acquisition Type of New defined in parameter NEW_ACQUISITION_CODE and non-capital assets (status codes not included in parameter CAPITAL_ASSET_STATUS_CODES).
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