DE 431 ADVANCED INVENTORY

1
DE 431 ADVANCED INVENTORY
2
Contact Information

• Inventory Services
• Campus mail code K5306
• Main phone number 471-3838
• Fax number 232-7555
• E-mail oa.inventory_at_austin.utexas.edu
• We are located on the ground floor of the Main
  Building in room 14D. Room 14D can be found
  behind and to the right of the information kiosk.
  

3
Class Objectives

• Establish a better understanding of Inventorys
  role and inventory-related deadlines.
• Understand how Inventory adds equipment to
  DEFINE.
• Know the different types of purchasing documents
  and the necessary information needed for
  processing.
• Recognize the importance of using correct object
  codes and the resources available.
• Understand the self-tagging process and its
  requirements.

4
Roles Responsibilities
Office of the State Comptroller Mandates state
agencies to perform and report annual
inventories.
Department/Division Heads Responsible for
day-to-day care of property in their respective
departments/colleges.
Inventory Contact People Appointed to assist with
the daily care of property within their
departments.
Inventory Staff Records, tracks, reconciles and
reports inventory results to the State
Comptroller.
UT Property Manager Responsible for the
accountability of all property in possession of
the university.
5
Inventory Services Overview

• Maintain equipment inventory records on shared
  mainframe database.
• Locate and tag university equipment as it is
  purchased and received by departments.
• Conduct and monitor the annual physical inventory
  cycle and audit those reports submitted by the
  university departments.
• Report and reconcile inventory records and values
  to both the annual financial report schedules and
  the state property accounting record reports.
• Provide inventory information and reference
  resources to department personnel.

6
Inventory Deadlines

• Equipment meeting current thresholds must be
  tagged within 30 days of receipt.
• Inventory must keep the NU1 at about 100
  transactions each month in order to meet the Aug.
  31 deadline of zero transactions on the NU1
  necessary for accountings year-end closeout.
• We need all annual physical inventory report
  certifications submitted to us by your due date
  so that Inventory Services can reconcile them by
  Aug. 31.
• AFR DEFINE reconciliation to SPA system due by
  Nov. 1.

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Two types of Property

• 1. Personal property is a fixed or movable,
  tangible asset rendered into service for
  operations and benefits extend beyond one year
  from date of acquisition.
• Furniture and equipment
• Vehicles, boats, and aircraft
• Works of art and historical treasures
• 2. Real property is a nonmovable, permanent, or
  long-lived asset.
• Land and land improvements
• Buildings and building improvements
• Facilities and other improvements
• Infrastructure
• Leasehold improvements
• Construction in progress

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DE 437 Review Capitalized and controlled

• List of controlled items as deemed by the state
• Electronic/Computer valued at 500 to 4,999.99
• cameras
• camcorders
• computers (desktop or laptop)
• laserdisc players
• nonportable printers,
• stereo systems
• television sets
• VCRs
• MISC (regardless of cost) guns and rifles
• Capitalized means that the item purchased is
  valued at 5,000 or more.

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Different types of transactions that post to NU1

• VP1 purchase order payment request
• VP2 service payment request transactions
• VP7 ProCard transactions
• VC1 VC2 rebate or credit transactions
• VT5 IDT original charges transactions
• VT6 correction transactions
• VJ1 journal voucher entries and correction
  transactions

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What is the NU1 Screen?

• The Accept Accounting Transactions screen (NU1
  screen) gets populated every night with paid
  transactions using inventory object codes made
  throughout the university.
• Inventory Services must match those transactions
  to any tagging information, regardless of who
  tags the item. Once the match is made and the
  object codes are correct, the item gets added to
  DEFINE.

13
Example of the NU1

• Throughout the year, Inventory Services must keep
  the amount of unprocessed transactions to a
  minimum of 100 or less each month. The NU1 must
  be completely zeroed out by Aug. 31 of each
  fiscal year. This is one of our closeout
  requirements.
• DEQUAL ACCEPT ACCOUNTING TRANSACTIONS
  - NU1 Year 04 05
• Command NU1 Inv. Nbr. ________ Misc
  _______________ Month Dec
• 
  
• Start Doc ___________ Start Acct __________
  Start P.O. __________ Conv _
• 
  
• Document ID Account Obj Amount
  Rec Date Description
• ----------- ------------ ---- ---------------
  -------- --------------------
• _ N0VP1911656 19-7489-7650 1840
  7,549.00 11/20/02 SHERLOCK SYSTEMS INC
• _ N0VP1911732 63-0470-1156 1830 119,148.06
  11/20/02 NETWORK APPLIANCE
• _ N0VP1911875 19-5800-2480 1860
  3,855.00 11/19/02 ANIXTER INC
• _ N0VP1912353 26-3950-6380 1840
  3,099.20 11/21/02 DELL MARKETING LP
• _ N0VP1912531 19-9703-0350 1847
  553.00 11/14/02 AUSTIN BUSINESS COMP
• _ N0VP1912893 19-7830-5750 1840
  8,448.00 11/19/02 DELL MARKETING LP
• _ N0VP1912893 19-7830-5750 1847
  613.20 11/19/02 DELL MARKETING LP

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Purchase Order
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VP7 Procard purchases will not have purchase
order numbers, but they will have document IDs
that can be researched on DEFINE command GT6.
Use command NV6 to see if it has been added to
DEFINE.

• Command GT6 Account __________ Misc
  N0VP7989641____ Month DEC
• 
  
• 
  Transaction Status C
• Rec-Date Voucher Description
  Obj AC/RT Amount S
• Document-ID DTN P.O.Number Chk.Nbr
  T-Code Prc-Date Account
• --------------------------------------------------
  ----------------------------
• _ 09/04/02 S486439 PROCARD / PC NATION 1847 EX
  DI 674.92- C
• N0VP7989641 PAID
  0800 09/04/02 14-0205-0052
•  
• -Screens 1, 2, 4, and 5 provide very little
  account information and no equipment description
  or equipment location.
• -Screens 3 and 6 are blank.
• -Inventory Services will e-mail the creator and
  anyone associated
• with the VP7 document for additional information.
  Inventory Services
• requires additional information to determine if a
  document is codes
• correctly.

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Can you figure it out? What is this item?
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Can you figure it out? What is this item?
19
Can you figure it out? What is this item?
20
Can you figure it out? What is this item?
21
Can you figure it out? What is this item?
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Can you figure it out? What is this item?
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NEITHER CAN WE!
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Does this help?

• There are 1 pages of invoice detail. Press ENTER
  to see more.
• Vendor Name BANK OF AMERICA
  Screen 4 of 6
• Vendor Addr WARRANT
  NBR 2356990
• WARRANT
  DATE 09/06/04
• 
  
• Doc ID
  N0VP7989641
• Voucher
  S486439
• PO
  Number
• Service Dates Begin 08/27/04 End 08/27/04
  DTN
• Voucher Comments Procard payment KEVIN
  HEGARTY
• Procard payment for KEVIN
  HEGARTY
• 
  
• There are 1 invoices which total
  0.00
• Comments Invoice Nbr
  Invoice Amnt
• 5405823192991466

Answer a little
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Can you tell what this is?

• There are 1 pages of invoice detail. Press ENTER
  to see more.
• Vendor Name BANK OF AMERICA
  Screen 4 of 6
• Vendor Addr WARRANT
  NBR 2356990
• WARRANT
  DATE 09/06/04
• 
  
• Doc ID
  N0VP7989641
• Voucher
  S486439
• PO
  Number
• Service Dates Begin 08/27/04 End 08/27/04
  DTN
• Voucher Comments Procard payment Kevin
  Hegarty
• Hewlett-Packard Printer Main
  132 Room 02102
• 
  
• There are 1 invoices which total
  0.00
• Comments Invoice Nbr
  Invoice Amnt
• 5405823192991466

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The VP1 document can be researched on GT6, and
the purchase order on GT3.

• DEFINE TRANSACTIONS BY ENCUMBRANCE
  NUMBER - GT3 Year 04 05
• Command GT3 Account __________ Misc
  2002C01911_____ Month DEC
• 
  
• 
  Transaction Status E
• Rec-Date Voucher Description
  Obj AC/RT Amount S
• Document-ID DTN P.O.Number Chk.Nbr
  T-Code Prc-Date Account
• --------------------------------------------------
  ----------------------------
• _ 07/15/02 O536060 DELL MARKETING LP
  0200 EN EN 1,328.00- C
• N0PB4998611 2002C01911
  0200 07/15/02 29-1850-0050
• 6 08/01/02 L417216 DELL MARKETING LP
  1847 EX DI 1,328.00- C
• N0VP1942486 2002C01911 5195004
  0800 08/01/02 29-1850-0050
• _ 08/01/02 L417216 DELL MARKETING LP
  0200 EN EN 1,328.00_C
• N0VP1942486 2002C01911
  0200 08/01/02 29-1850-0050
• -Items in red show a paid transaction on 8/01/02
  ,vendor name, object
• code, amount paid, document ID, purchase order
  number, check 5195004
• used to pay, date, and account number.

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Inside InventoryVC1s and VC2s
Rebates and Returns These items are paid with
VC1 and VC2 documents and are typically prepared
by a departments accounting and purchasing
personnel.

• The purchaser should include
• expected rebates or discounts (if the department
  expects any) on the purchasing voucher note.
• reference inventory number if item has been
  tagged or the purchase order number associated
  with the credit.
• item description or line item number if multiple
  items were purchased. This will ensure that
  Inventory can locate the item that needs the
  rebate or credit and properly apply it to the
  asset. If the credit is going to an item that
  doesnt meet the controlled or capitalized
  thresholds, please code accordingly. For example,
  dont give your credit an 1840 object code if the
  item that is being credited was an 1846.
• Accounting personnel will be able to see extra
  monies being
• deposited into accounts and contact the Inventory
  section if
• transactions are coded with one of the inventory
  object codes.

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Trade-ins

• Trade-ins should be documented on new replacement
  purchase orders.
• The trade-in summary should include old inventory
  number to be replaced to ensure that it is
  removed from Inventory records. The replacement
  asset, if meeting current thresholds, should be
  tagged and added to DEFINE.

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What determines which items end up on NU1?
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Object Codes

• What are they?
• Object codes are four-digit codes used to
  categorize transactions for reporting purposes.
  Every accounting transaction must have an object
  code assigned to it.
• Where do I find them?
• Object codes may be viewed using the GG8 and GG9
  commands inDEFINE. An object code listing may
  be printed via the PF15 key in GG8 and GG9.
• http//www.utexas.edu/business/accounting/in/capit
  alized.html

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What are Inventory object codes?

• furniture and equipment object codes1830
  (capitalized),
• 1837 (controlled), 1836 (expensed)
• computer object codes1840 (capitalized), 1847
  (controlled), 1846 (expensed)
• computer software1841 (capitalized), 1842
  (expensed)
• telecommunications equipment1860 (capitalized),
• 1867 (controlled), 1866 (expensed)
• vehicle codes1810, 1811, 1813, 1814
• aircraft1812
• boats, motors, and trailers1820
• firearms1835 (controlled regardless of cost)
• museum artifacts, works of art and historical
  treasures1856
• animals1875

obsolete
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When to use an Inventory object code?

• Determine type of asset or commodity code if
  using Crosswalk.
• Things to consider
• Cost of asset
• Is it a controlled or capitalized asset?
• Is it on a 26-account? If so, see related object
  code threshold requirements and be familiar with
  your contract or grant restrictions and
  stipulations. For a 26-account checklist, go to
• http//www.utexas.edu/business/accounting/pubs/26a
  cct.pdf

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To print a hard copy of all object codes while in
command GG8 or GG9, use the PF15 key (ShiftPF3)
simultaneously. Choose to print in code order or
by keyword order.

• FISP JOB SUBMISSION
  12/17/2005
• Starting Jobgroup ________
  0449 PM
• Jobgroup Description
  
• --------------------------------------------------
  -----------------------
• _ AQJGAO11 OBJECT CODE REPORT - CODE ORDER
  
• _ AQJGAO12 OBJECT CODE REPORT - KEYWORD
  ORDER
• _ AQJGAO13 OBJECT CLASS CODES INCLUDING OLD
  CODES
• _ AQJGAO14 OBJECT CODE REPORT - SORTED BY
  STATE CODE
• _ AQJGAO18 OBJECT CODES - EXPENDITURE AND
  INCOME ONLY
• _ AQJGAO19 OBJECT CODE REPORT - SORTED BY
  LBB OBJECT DE

This printout includes a comprehensive list of
all object codes.
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GG9 search by keyword order

• Please press enter to page forward.
• DEFINE OBJECT CODES - KEYWORD
  ORDER - GG9 Year 04 05
• Command GG9 Account __________ Misc
  WARRANTY_______ Month AUG
• 
  
• Keyword Object Class Code
  Total Keywords (including
• -------------------- -----------------
  --------------Misc.)
• _ WARRANTY-COMPUTER 1481
  39
• _ WARRANTY-EXTENDED 1475
  99
• _ WARRANTY-EXTENDED 1481
  39
• _ WARRANTY-INDUSTRIAL 1475
  99
• _ WARRANTY-OFFICE 1475
  99
• _ WASH/WAX-AUTOMOBILE 1475
  99
• _ WASTE DISPOSAL 1772
  21
• _ WASTE DISPOSAL-CHEM 1303
  11
• _ WASTE DISPOSAL-HAZAR 1303
  11
• _ WASTEWATER 1772
  21
• _ WATCHMAN HUTS-PURCH 1802
  11

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Choose GG9 to research by keyword order or GG8
for a specific object code. Type an X next to the
code for more detail.

• DEFINE OBJECT CODES - CODE ORDER -
  GG8 Year 04 05
• Command GG8 Account __________ Misc
  1830___________ Month AUG
• 
  
• Object State Title
  PPA Inv BF-T
  Keyword
• ------ ----- ----------------------
  --- --- ---- ------------------
• X 1830 7373 FURN EQUIP - CAPITAL
  X IN 8100 AIR CONDITIONER-
• _ 1832 7388 FABRICATION OF EQUIPME
  8100 ADHESIVE-FABRICATI
• _ 1833 7376 LEASE/PURCH FURN/EQUIP
  8100 EQUIPMENT-LEASE/PU
• _ 1835 7374 SPA ITEMS FUREQ FIREARMS
• _ 1836 7334 FURN EQUIP - EXPENSE
  8100 ADAPTER-F E-N/C
• _ 1837 7374 FURN EQUIP - CONTROL
  BALANCES
• _ 1839 7334 FURN EQ- CONT 26 ACC
  FRN/EQ 1000-4999.
• _ 1840 7379 COMP EQUIP - CAPITAL
  8100 BOARD-EMULATION-CA
• _ 1841 7387 COMPUTER SOFTWARE-CAP
  8100 CAPITALIZE-SOFTWAR
• _ 1842 7380 COMP SOFTWARE-EXPENSED
  8100 AGREEMENTS
• _ 1843 7385 LEASE/PURCH COMPUTER/E
  8100 CAPITALIZE-LEASE/P
• _ 1845 7378 COMP EQ - CONT 26 ACC
  COMPUTER EQUIPMENT
• _ 1846 7335 COMP EQUIP - EXPENSED
  8100 ADAPTERS-COMPUTER
• _ 1847 7378 COMP EQUIP - CONTROL
  BUNDLES

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Example

• Type DI Status A
  LBB 5000
• 
  USAS Batch Type 1
  Bal.Fwd.T-Code 8100
• PPA Interest Sw X USAS Doc.
  Type J
  Inventory Sw IN
• 
  
  Taxable Sw _
• Abbreviation FURN EQUIP
  Display old
  codes? _
• 
  Short Title FURN EQUIP - CAPITAL
  
• Long Title
  FURNITURE EQUIPMENT - CAPITALIZED_____
• 5,000
  
  
• Keywords
  
  Total Keywords 83
• AIR CONDITIONER-CAP_ AIR CONDITIONING
  SYS ALARM SYSTEM-BURGLAR
• ALARM SYSTEM-CAPITAL ANCHOR-CAPTALIZED___
  ASPHALT HEATER______
• BACKHOE_________
  BARGE_______________ BOAT-PURCHASE_______
• BOILER-PURCHASE_____ BULLDOZER-PURCHASE__B
  URGLAR ALARM SYSTEM
• CAMERAS OVER 1000__ CAPITALIZE-F EQ___
  CAPITALIZE-LEASE/PUR
• CATERPILLARS-CAPITAL COPY
  MACHINE-PURCH__ DESKS-CAPITALIZE____

Object code 1830 is used for furniture and
equipment that is capitalized. Items
in red indicate the type of capitalized furniture
and equipment that can have an 1830 object
code. Press ENTER to view more.
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Object code 1837 is used for 26-accounts for
controlled items.

• Object 1837 State 7374
  Trans Type DI Status A LBB 2000
• 
  USAS Batch Type 1
  Bal.Fwd.T-Code ____
• PPA Interest Sw X USAS
  Doc. Type J Inventory
  Sw IN
• 
  
  Taxable Sw _
• Abbreviation
  FURN EQUIP Display old codes? _
  
• 
  Short Title FURN EQUIP -
  CONTROL
• Title FURN EQUIP - CONTROLLED - 26
  ACCOUNTS
• 
  WITHOUT AN 89 SUBACCOUNT
  
  
• 
  500-4999.99
• Keywords
  
  Total Keywords 10
• CAMERAS_____________ STEREOS____________
  _ VIDEO PLAYER/RECORD_
• VIDEO RECORDER/PLAY_ ____________________
  ____________________

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Object code 1836 is used for furniture and
equipment listed below that is not controlled
or capitalized.

• Object 1836 State 7334 Trans Type DI
  Status A LBB 2000
• USAS Batch Type 1
  Bal.Fwd.T-Code 8100
• PPA Interest Sw X USAS Doc. Type J
  Inventory Sw __
• 
  
  Taxable Sw _
• Abbreviation FURN EQUIP
  Display old
  codes? _
• Short
  Title FURN EQUIP - EXPENSE
  
• Long
  Title FURNITURE EQUIPMENT - EXPENSED______
• 0.00-4999.99
• Keywords
  Total Keywords 186
• ADAPTER-F E-N/C___ AIR CONDITIONER-N/C_
  ANCHOR-NON CAPTAL
• ANIMAL TRAP_________ ANSWERING MACHINE___
  ANTENNA____________
• APPLIANCES__________ AQUARIUM____________
  ARTIFICAL FLOWERS__
• ARTIFICAL PLANTS____ ATTACHE CASE________
  AUTO-FLOOR MAT_____
• AX__________________ BACK SUPPORTS_______
  BACK SUPPORTS-EMPLOY
• BACKBOARD___________ BADGE-KEY-ELECTRONIC
  BALLS-TENNIS,FOOTBAL

Press ENTER to view more.
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Object code 1846 is used for computer-related
equipment not controlled or capitalized.

• Object 1846 State 7335 Trans Type DI
  Status A LBB 2000
• USAS Batch Type
  1 Bal.Fwd.T-Code 8100
• PPA Interest Sw X USAS Doc. Type J
  Inventory Sw __
• 
  Taxable Sw _
• Abbreviation COMP EQUIP__
  Display old codes? _
• Short Title COMP EQUIP - EXPENSED_
  
• Long Title COMPUTER EQUIPMENT -
  EXPENSED___________
• COMP EQUIP
• MONITORS
• Keywords
  Total Keywords 86
• ADAPTERS-COMPUTER___ BATTERIES-COMP-RECHG
  BATTERIES-RECHRGABLE
• BLANK MAGN TAPES-COM BOARD-EMULATION_____
  BOARD-MEMORY EXPANS_
• CABLE-COMPUTER______ CABLE-DEDICATED-COMP
  CARTRIDGES-COMPUTER_
• CARTRIDGES-FONT-COMP CASE-CMPTR MAGN TAPE
  CASSETTE TAPE-COMPUT
• CHIPS-MEMORY/RAM-COM COMPUTER ADAPTERS___
  COMPUTER CABLE______
• COMPUTER CARTRIDGES_ COMPUTER DISK CONTRL
  COMPUTER EQUIP-PURCH

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Object code 1847 is used for controlled
computer-related equipment paid for with a
26-account.

• Object 1847 State 7378 Trans Type DI
  Status A LBB 2000
• USAS Batch
  Type 1 Bal.Fwd.T-Code ____
• PPA Interest Sw X USAS Doc.
  Type J
  Inventory Sw IN
• 
  
  Taxable Sw _
• Abbreviation COMP EQUIP__
  Display old codes? _
• Short Title COMP EQUIP - CONTROL__
  
• Long Title
  COMPUTER EQUIPMENT - CONTROLLED 26-ACCOUNTS
• 
  WITHOUT AN 89 SUBACCOUNT
• 500-4999.99
  
• Keywords
  
  Total Keywords 10
• BUNDLES_____________ COMP EQUIP__________
  COMPUTER BUNDLES____
• COMPUTER CPU'S______ COMPUTER EQUIPMENT__
  COMPUTER MONITORS___
• COMPUTER PRINTERS___ CPU'S_______________
  MONITORS____________
• PRINTERS____________

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Misc. Object Codes

• FABRICATION - 1832 FABRICATION OF EQUIPMENT
• WARRANTIES - 1481 COMPUTER WARRANY (i.e.,
  APPLECARE)

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VP1-Crosswalk

• What training is available?
• VP1 - Crosswalk (PowerPoint slideshow)
• http//www.utexas.edu/business/accounting/slidesho
  w/index.html
• What resources are available?
• Office of Accounting Help Line 471-8802 or
  acic_at_austin.utexas.edu

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VP1 Documents

• Crosswalk
• http//www.utexas.edu/business/accounting/news/vp1
  crosswalk.html
• Select a commodity code.

• Commodity Code 03528
• Cameras and Accessories, Aerial Photograph
• Profile Account Type Amount Range
  Object Code  
• 1 Normal 0.00 to
  499.99 1836
• 2 Normal 500.00 to
  4,999.99 1837
• 3 Normal 5,000.00 and
  up 1830
• 4 26......82 to 88 0.00 and up
  1832
• 26......89 1,000.00 to
  4,999.99 1839

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VT5sIDT ORIGINAL CHARGES

• Classroom upgrades, whether building or
  equipment, should have an object code that
  corresponds to the type of upgrade and threshold.
• Services or maintenance that is being billed to
  original departments that had the service or
  maintenance performed should have the object code
  that corresponds to services or maintenance.
• Inventory usually gets these types of
  transactions around August just before closeout.
  These documents require inventory numbers and
  unit codes and should match object codes if a
  classroom upgrade involves equipment or furniture.

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What happens to documents improperly coded?

• If the correct object code can be determined, a
  VT6 or VJ1
• correction will be made by Inventory.
• VT6correction to a local voucher can be done
  within the same
• week.
• VJ1corrections to state vouchers require more
  complex detail than
• VT6s. The correction request is sent to
  another accounting
• department for approval rather than
  Inventory. Turnaround
• time varies from two weeks to longer.
• If the proper object code cannot be determined,
  the creator or someone associated with the VP
  document will be contacted. The correction
  timeframe will depend on response time.

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VT6s

• VT6s are used to correct account numbers and
  object codes. Accounts are in units, therefore a
  change to an account can also change the unit
  code of an item.
• Who can do a VT6?
• Departments create VT6 documents. Inventory also
  creates VT6s.
• Example of a VT6 correction
• A department assigned 1847 object code to a 499
  computer.
• Inventory changes the code to 1846. One week
  later, the department completes a VT6 to change
  the account number to be encumbered but
  changes the object code to 1847.

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Items added to Inventory without using the NU1.

• gifts
• inter-agency transfers from another state agency
• transfers into the University, as a result of a
  PI
• found in department
• fabrications
• government-furnished equipment
• excess personal property
• These items are added with the PF2 Key.

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GIFTS DONATIONS DEFINITIONS

• noncash gifts tangible assets including art,
  books, equipment, antiques, and intellectual
  property (i.e., painting that was donated). Gifts
  of real property are governed by the UT System
  Trust Real Estate Policy.
• tangible service gifts include but are not
  limited to hotel/motel accommodations, meals, air
  travel and loaned vehicles (i.e., block of hotel
  rooms).
• Donations of intangible services such as
  management consulting do not qualify as gifts.

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GIFTS DONATIONS

• Inventory can only add approved gift dockets to
  DEFINE by order of the auditors.
• Gift dockets are prepared by the development
  office.
• Dockets involving items that can be inventoried
  are sent to Inventory Services.
• For information about submitting gift dockets,
  contact the Development Office (471-5424).

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GIFTS DONATIONS Disposals

• If a department wishes to sell or dispose of a
  noncash gift within two years of receipt, the
  donor and IRS must be notified of the disposition
  on IRS Form 8282, Donee Information return. The
  department should alert the Controllers Office
  and the Development Board that a disposition of
  this type will be occurring so that the proper
  documents can be completed.
• Equipment must be kept for two years before it
  can be taken off the inventory system.

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Found in the Department

• What does this mean?
• Sometimes departments run across an item that has
  gone untagged or is tagged but was never added to
  DEFINE. If the item is a controlled or
  capitalized item meeting the current
  thresholds, Inventory will add this item to the
  system.
• Why does this happen?
• There was an improper object code on a prior
  year. Transaction is the major culprit.

52
Government-Furnished Equipment(GFE source code)

• This equipment is furnished by the U.S.
  Government to the university to be used for
  research and development in research contracts or
  grants. Title is with the U.S. Government.
• Example of how this would appear on DEFINE NV1
• Inv 700129 Elem 1_____ OrigFY 1967
  LatestFY 2004 Screen 1 of 6
  Active SW X Amount
  150,000.00
• Description CONSOLE SONAR_______________________
  _________
• Owner Code F Purchase code F Federal Title -
  Held in Trust
• Unit Code 3100000 APPLIED RESEARCH LAB
  
• 
  
• Class Code 546 Object
  Code 1830
• Acquisition Code/Date 01 01/01/68
  Source GFE

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What is Excess Personal Property? (FEP Source
code)

• Excess personal property is government-furnished
  equipment that is obsolete to the government.
• Principal investigators are given a list of items
  available and are allowed to choose equipment
  they may find useful in their research. Delivery
  arrangements are made.
• Inventory tags only equipment that meets the
  controlled or capitalized thresholds, and the
  items are added to DEFINE and to the unit that
  will have tracking responsibility.

54
Self-Tagging Privileges

• The ultimate goal is to shorten the amount of
  time it takes from the moment an item is received
  and tagged to when it is added to DEFINE and
  appears on your inventory listing.

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How Self-Tagging Works

• The goal for the self-tagging project is to get
  items tagged and
• added to the system more quickly. You dont have
  to wait for our
• field representative to come out and tag your
  equipment.
• You will be supplied with inventory barcode tags.
  There is an end- of-the-month deadline. You have
  30 days from receipt date to tag and send the
  tagging information in order to be in compliance.
• Inventory will use tagging results from a
  spreadsheet to update DEFINE.

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Sequence of Events

• As your department purchases equipment, place a
  tag on items that have been received and are
  capitalized (5,000 and over) and items that are
  controlled and at least 500 in value.
• Complete the electronic spreadsheet of what you
  have tagged with corresponding purchasing
  documents (i.e., purchase order, Procard VP7
  document, VP1 or VP2 documents etc.)
• E-mail your spreadsheet to oa.inventory_at_austin.ute
  xas.edu by the end of each month.
• As items are paid for, they will post to
  inventorys system. We will match all tagged
  information that you have submitted to what is on
  these screens and add items to the DEFINE system
  that will populate the NV1/NVP reports you use to
  conduct your annual physical inventory.

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Spreadsheet Example
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Self-tagging Dysfunctions

• Problem
• If tagged equipment is not inDEFINE, Inventory
  Services
• did not receive the necessary information.
• Solution
• Send the information to Inventory Services. They
  will add the records to DEFINE as soon as the
  information is received. After it has been added,
  run a new NVP report that will include all the
  information that is paid for and meets the
  controlled or capitalized thresholds.

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Dont let the tagging snowball!
Problem Equipment is untagged because of
extenuating circumstances.
Remedy Let Inventory Services know your
circumstances, and a field representative will
assist you. You may also elect to stop
self-tagging, and we will resume the tagging of
your department.
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Problem The assigned number of an item in
DEFINE begins with 900000 rather than the
actual tag number.

• Remedy
• If you have computers and other equipment that
  have been tagged and appear on your NVP report
  with a 900000 number, provide Inventory Services
  with the actual tag number used so that the
  DEFINE can be updated.
• If you havent tagged these items, please do so
  and provide Inventory Services with the
  information. As a last resort, Inventory will
  give assigned numbers to clear out the NU1
  accounting system. Assigned numbers are typically
  given to software and items that cannot be
  physically tagged but require tracking.
• Inventory usually notifies departments that have
  this problem and includes purchasing document
  numbers and details that will help resolve the
  issue. This information is also on your NVP
  listing.

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What can keep a paid item that has been tagged
from getting added to the DEFINE system?

• Answer
• The wrong object code is the most common error.
  This happens when supplies are coded as equipment
  or vice versa, or equipment thresholds do not
  match the object code chosen.
• Solution
• Inventory can do VT6 corrections to transactions
  paid for with local funds almost immediately. The
  problem lies with items paid for with state
  funds. VJ1 corrections are requested by Inventory
  but have to be submitted to another accounting
  department for actual approval and can take
  longer before they are processed.

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Inventory Recap

• The item has been tagged. What next?
• Inventory must find the transaction on NU1 and
  add the description, serial number, and location.
  This will add the record to DEFINE and the
  account-driven unit code that paid for the
  transaction.

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What is a scanner exception report?

• Each time you bring in your scanner for a
  download, a scanner exception report will be
  created. It includes inventory numbers whose
  status was updated and inventory numbers whose
  status was not updated.

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Records Failed to Update

• Records inactive or not found
• Record is inactive due to thresholds changes or
  a noncontrolled class code. You can draw a line
  through the tag to prevent future scanning. If
  the item is controlled or capitalized and
  meeting current thresholds, contact Inventory
  Services to have this item added to DEFINE.
• Records scanned with invalid bldg/room
  combinations
• Use four-digit building codes and 5-digit room
  numbers without periods, hyphens, or dashes.
  Preceding letters are to be included as part of
  the number. Letters following the five-digit room
  numbers are considered additions to the five
  digits.
• Bundled items showing in more than one location
• Bundled items should be in the same location.
• Records with bad scanner data
• Room number was used in the Building field or
  Inventory field
• rather than the Designated Room field.

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What happens after the item has been paid for?

• The item will receive an inventory tag if the
  item is coded properly and meets the required
  controlled or capitalized thresholds.
• Submit the tagging information in the form of a
  spreadsheet that should be e-mailed to Inventory
  Services at the end of each month.
• Inventory still has field representatives that
  do the tagging for departments that dont
  self-tag.

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LIVE DEQUAL TEST NU1 SIMULATION

• Example 1a ProCard document
• Example 2Procard purchase. Once equipment is
  confirmed, the object code may change.
• Example 3How a record is added to DEFINE.
• Example 4What causes a split?
• Example 5What causes split ownership? Why are
  there two elements when only one item was
  purchased?

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Additional Resources

• You can find the information below on the
  Inventory Services Web
• page http//www.utexas.edu/business/accounting/in
  /.
• Policy Guidelines Related to Property Management
• The following documents are in downloadable PDF
  format
• University Property Accounting Responsibility
  Guidelines
• Procedures for Inventory Control and Management
  of United States
• Government Property
• (ARL) Property Management and Record Keeping
  Procedures of Applied Research Laboratories
  Guidelines and this document's (ARL) Table of
  Contents
• Inventory Transfers Document
• The Inventory Transfers Document (NT1) is
  available for electronic processing of inventory
  transfers.
• NT1 TutorialA detailed introduction to the use
  and functions of the NT1 electronic transfer of
  inventory document.
• Frequently Asked Questions
• 26-Account Information - Checklist for payments
  of equipment

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Questions?

• E-mail us at oa.inventory_at_austin.utexas.edu
• or call 471-3838.

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Thank you for viewing this presentation.

• For more information, contact
• User Services
• Financial Information Systems
• 512-471-8802
• oa.askme_at_austin.utexas.edu