Asset Creation Process

New Capital Asset Creation Process-Equipment, Art & Rare Publication

  1. Inventory Control reviews all requisitions that contains a capital or non-capital object code or any requisition that totals $5,000 or more.  
  2. Procurement can amend a purchase order to change any information on the order. Procurement must notify Inventory Control to approve any order changes to a purchase order that contains a capital or non-capital asset.
    • Accounts Payable reviews the purchase orders and invoice to determine if funds are available. A two-way match requires only a purchase order & invoice for payment; whereas, a three-way match requires a purchase order, invoice, and a fiscal officer approval for payment, which is set by the department when initiating the requisition.
    • Inventory Control initiates asset global documents once a partial or full payment is made through a payment request document.
      • Once a payment is made on a purchase order than contains a capital or non-capital asset, an entry to the GL (Invested in Plant Account-Capital Equipment University Owned 7799900-6730) is recorded in KFS even though the asset is not captured nor placed in service in Capital Asset Management System (CAMS). 
    • The asset global document is routed to the inventory coordinator group for the department that initiated the order. The inventory coordinator group must verify and input the tagging information for the asset (location, serial number, tag number, and responsible person). Inventory Control sends out a Pending Asset Global Document Report to the department’s inventory coordinators every other month as a reminder to complete and approve these documents.  
  3. The asset is created and is now active in CAMS, which activates the calculation of depreciation. 
  4. A Capital Physical Inventory is conducted on an annual basis and depreciation is calculated and posted on a monthly basis.