A trade-in is considered a sale when one or more pieces of existing equipment are returned to a vendor in conjunction with a new equipment purchase for a specified dollar amount discount or adjustment to the full cost of the new equipment. The reduction represents proceeds from the disposal and are used to adjust the recorded cost basis of the new equipment. New equipment meeting the university capitalization threshold will be appropriately tagged.
Determine who holds title to equipment. Title must vest with the university to be used as a trade-in unless approved in writing by the sponsoring agency.
Contact Purchasing for assistance in determining the feasibility of trading in equipment.
Process an online purchase requisition for new equipment. Include the equipment tag number of the equipment being traded-in and a description of the item along with the trade-in amount negotiated by Purchasing.
Complete Declaration of Surplus Equipment form to record the disposition of all traded-in equipment and submit form to the PMO.
Retain copy of applicable form.
Advise department of value for inclusion on the Purchase Requisition.
As necessary, facilitate or arrange for the pick-up of traded-in equipment.