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(DPA guidance
documents. Non-DPAs contact your DPA).
FIXED ASSET (FA) ADD-ON DECISION TREE
ADD-ON: A component (1 item)
added to a FA more than 6 months after original purchase and which
can be procured in a 55xx object code and its cost added to the original
depreciable cost of the asset. To determine if the item qualifies
as an Add-On, answer the questions below.
| 1.
Will the item be permanently and intrinsically tied to the FA
for the duration of the FA's UCAR-life? |
NO |
Not
an add-on.
EXPENSE |
YES
Go on to question 2 |
2.
If the current asset cost is $5K-$50K, is item cost 10%+
of current asset cost
($1K minimum)?
If the
current asset cost is >$50K, is item cost $5K+?
|
NO |
Not
an add-on.
EXPENSE |
YES
Go on to question 3 |
3a.
Does item increase the FA's capacity, functionality, or operating
efficiency?
AND/OR
b. Does item extend the FA's useful life* by at least 1 yr? |
NO |
Not
an add-on.
EXPENSE |
YES
Read paragraph below |
|
Add-on
may be included in the cost of the FA and depreciated. Issue
a requisition using a 55xx object code and reference the FA
PPE#.
Complete
the add-on form, including the PPE tag number and account
key where the purchase will be charged, and send to the Property
Office. To access form, click on the link below that says "Add-On
Form."
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*UCAR applies
useful lives of 4 years for computer equipment and 5 years for technical/scientific
equipment, except where bond funding dictates otherwise. Therefore,
"yes" to 3b. means the useful life is extended beyond the initial
4 or 5 yrs.
Add-On
Form
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