PCS 209: Acquisition of Equipment for Resale
To define a procedure relating to the acquisition of capital equipment specifically for other university departments
Departments desiring to purchase capital equipment specifically for resale are required to use the cost-of-goods-sold object code (7010) on the initial purchase order. When the department sells the equipment to another university department, the acquiring department must use an internal purchase order (PO) charging the appropriate capital object code (normally 7810).
|Note:||This policy does not apply to equipment that has already been capitalized and is being considered by a department for acquisition or sale (see PCS 210, “Interdepartmental Acquisition of Used Equipment”).|
The department acquiring equipment specifically for resale prepares a purchase order for capital equipment using the cost-of-goods-sold object code (7010). When the equipment arrives, the equipment is placed in a secured area.
The department acquiring equipment prepares a PO for capital equipment using a capital object code (7810).
For information about equipment that has already been capitalized and is being considered by a department for acquisition or sale, see PCS 210, “Interdepartmental Acquisition of Used Equipment.”
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