Wayne State University

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Policies and Procedures

APPM

6.1.2 Enhancement of Capitalized Equipment

POLICY

Rebuilt, refurbished or enhanced capitalized equipment items may add to the value and/or extend the useful life of capitalized equipment.  When enhancement occurs, Fiscal Operations PMO in consultation with the department will determine if the enhancement should be capitalized or expensed. Department communication with Fiscal Operations in situations where asset enhancements occur is essential, imperative and required.  The university's capitalization threshold for equipment enhancements is a cost of $2,000 or greater and potential enhancement cannot operate independently.

PROCEDURE

Responsibility

Action

Equipment Acquirer

(PI/their designee or other authorized departmental representative)

  1. Initiate requests for the purchase of equipment in accordance with the appropriate university procurement procedures.

  2. Consult with Fiscal Operation's PMO regarding capitalization or expense of enhanced items.

Requisition Processor

  1. Complete online purchase requisition consistent with university requirements.

  2. Enter the equipment tag number in the online purchase document text to which the enhancement will be added.  This ensures that PMO updates the fixed asset record for the equipment being enhanced.

  3. Complete online purchase requisition.

S/C/D Administrative Manager

  1. Approve online purchase requisition.