Scope:
Organizations with movable capital equipment

Definition:
Movable Capital Assets are transportable equipment in the custody of Indiana University which have an acquisition value of five thousand dollars ($5,000) or more and a normal life expectancy of one year or greater.

Procedure:

1. After the transfer has been agreed upon by both organizations, then either organization may process the transfer document. The current owner will retain responsibility until the receiving organization’s account manager approves the transfer document. We suggest that the transferring organization contact the receiving organization to ensure that the item is transferred into the appropriate account.
2. To complete the documents, you will need to fill in the account number that is receiving the transfer, the campus code, the building code, and the room number of the new location.
3. When there is an interdepartmental sale of equipment, a Transfer of Funds document will need to be processed in addition to an Asset Transfer document. On the Transfer of Funds document the contra expense (previously Income) object code should be assigned as (9915) Trsfrs of Funds-Revenue. The expense object code should be (9970) Trsfrs of Funds - Capital.
4. The approval of the account manager of the transferring organization and of the new organization is required. If one of the managers is not an active FIS user, then the document will be routed through the Capital Assets office to secure adequate documentation.

Additional Procedures for Transferring Items to Surplus on the Indianapolis Campus:

1. In addition to the above requirements, the asset transfer document at the Indianapolis campus must also include the name of the asset representative.
2. The organizational text must include a contact name and phone number to assist the movers in picking up the surplus equipment.
3. After the document has been approved for surplus, then the document is routed to the Surplus department for print out and deferment until the movers are contacted for equipment pick up. Movers must see document affixed to item for pick up.
4. Upon physical receipt of the equipment, the Surplus department approves the asset transfer in TP.

Example Transaction for an Asset Transfer:
In the scenario below, the transportation department is giving a Ford pickup to the Chemistry department.

Asset 245222 Owner Account 6628000
Description: Ford Pickup

Original Purchase Payment Record

Reminder:
The organization that is going to be responsible for the asset must indicate the account and location. The asset transfer document requires that a new account number be entered.

General Ledger Accounting Entries for Asset Transfer Document:
Transferring an asset to another university organization will only affect balance sheet object codes within the 95 plant fund. The capitalized cost, the accumulated depreciation and the residual fund balance will be removed from the current owner account’s balance sheet and placed on the balance sheet of the receiving account.

Asset 245222 Owner Account 1024700
Description: Ford Pickup

New Payment Records (this will not affect cash for either the 1024700 or the 6628000)

General Ledger Entries for Asset Transfer