Asset Recharge Accounting
The following is an outline of asset entries generated from the Fixed Asset module when the asset or a portion of the asset was purchased through recharge.
Recharge Accounting Overview
Assets are purchased in a variety of ways on an asset account and the purchasing Financial Unit/Project and their desired Fund, including via recharge.
Once the asset record is generated in FA, the traditional capitalization entry:
- Transfers the value of the asset to an expense on the purchasing Fund/Financial Unit/Project
- Transfers the value of the asset to the 42000 NICA Fund and centralized Financial Unit through a series of transfer lines/accounts
Due to the accounting requirement that all recharge activity net to zero, any assets or portion of an asset purchased via recharge will not be transferred to a 5XXXXX expense account but will remain on the original 77XXXX recharge account.
Below is an example of a piece of equipment that was fabricated and a CIP project that had a portion of their costs resulting from recharged goods/services.
Example of Fabrication Purchased via Recharge
- Project – 3000001
- Financial Unit – 6000345
- Fund – 13991
- Function – 720
List of Expenditures on Fabrication Project 3000001
A portion of the expenditures charged on the project are recharges.
Not Shown: Corresponding credit/revenue on the recharge project providing the goods/services.
| Project | Task | Expenditure Type | Amount |
|---|---|---|---|
| 3000001 | 1 | 163001 - CIP - Equip Fab Materials and Labor | 5,000.00 |
| 3000001 | 1 | 770000 - MPL Machine Shop Material Recharge | 1,200.00 |
| 3000001 | 1 | 770000 - SIO IDG Fabrication Costs | 3,500.00 |
| 3000001 | 1 | 770000 - SIO LDL Fabrication Costs | 2,000.00 |
| Total | 11,700.00 |
Accounting for Expenditure on Fabrication Project 3000001
The project gets debited to the General Ledger based on the amount and account code for each group of expenditures.
Not Shown: Corresponding credit/revenue to the recharge project providing the goods/services.
| COA | Debit |
|---|---|
| 16160.13991.6000345.163001.720.000.000000.3000001.000000.00000.000000.000000 | 5,000.00 |
| 16160.13991.6000345.770000.720.000.000000.3000001.000000.00000.000000.000000 | 6,700.00 |
| Total | 11,700.00 |
Capitalization Entry from Fixed Assets for Fabrication Project 3000001
During capitalization, Fixed Assets debits and credits the recharge account for the same amount to retain the net zero accounting requirement, while still transferring any non-recharge amount on the 16XXXX asset accounts to the appropriate expense account at the department level.
| COA | Debit | Credit |
|---|---|---|
| 16160.13991.6000345.770000.720.000.000000.3000001.000000. 00000.000000.000000 |
6,700.00 | |
| 16160.13991.6000345.770000.720.000.000000.3000001.000000. 00000.000000.000000 |
6,700.00 | |
| 16160.13991.6000345.163001.720.000.000000.3000001.000000. 00000.000000.000000 |
5,000.00 | |
| 16160.13991.6000345.525905.720.000.000000.3000001.000000. 00000.000000.000000 |
5,000.00 | |
| 16196.13991.9699908 .524000.720.000.000000.3000010.000000. 00000.000000.000000 |
11,700.00 | |
| 16196.13991.9699908.829000.000.000.000000.3000010.000000. 00000.000000.000000 |
11,700.00 | |
| 16196.42000.9699908.829040.000.000.000000.3000010.000000. 00000.000000.00000 |
11,700.00 | |
| 16196.42000.9699908.163000.000.000.000000.3000010.000000. 00000.000000.00000 |
11,700.00 |
Example of CIP with Portion Purchased via Recharge
A new building is constructed with a portion of the expenditures from various recharge services
- Project – 3000010
- Financial Unit – 9699908
- Fund – 17301
- Function – 640
- Location - C72480
List of Expenditures on Capital Project 3000010
A portion of the expenditures charged on the project are recharges.
Not Shown: Corresponding credit/revenue on the recharge project providing the goods/services.
| Project | Type | Expenditure Type | Amount |
|---|---|---|---|
| 3000010 | 1 | 163500 – CIP - Construction | 150,000.00 |
| 3000010 | 1 | 163500 – CIP - Consultants | 120,000.00 |
| 3000010 | 2 | 163500 – CIP - Construction | 75,000.00 |
| 3000010 | 2 | 770006 - Building Maintenance-Fac Mgmt Rechg- Debit | 30,000.00 |
| Total | 380,000.00 |
Debited Accounting for Expenditures on Capital Project 3000010
The project gets debited to the General Ledger based on the amount and account code for each group of expenditures.
Not Shown: Corresponding credit/revenue to the recharge project providing the goods/services.
| COA | Debit |
|---|---|
| 16196.17301.9699908.163500.640.000.C72480.3000010.000000.00000.000000.000000 | 350,000.00 |
| 16196.17301.9699908.770006.640.000.C72480.3000010.000000.00000.000000.000000 | 30,000.00 |
| Total | 380,000.00 |
Capitalization Entry from Fixed Assets for Capital Project 3000010
During capitalization, Fixed Assets debits and credits the recharge account for the same amount to retain the net zero accounting requirement, while still transferring any non-recharge amount on the 16XXXX asset accounts to the appropriate expense account at the department level.
| COA | Debit | Credit |
|---|---|---|
| 16196.17301.9699908.770006.640.000.C72480.3000010.000000. 00000.000000.000000 |
30,000.00 | |
| 16196.17301.9699908.770006.640.000.C72480.3000010.000000. 00000.000000.000000 |
30,000.00 | |
| 16196.17301.9699908.163500.640.000.C72480.3000010.000000. 00000.000000.000000 |
350,000.00 | |
| 16196.17301.9699908.525800.640.000.C72480.3000010.000000. 00000.000000.000000 |
350,000.00 | |
| 16196.17301.9699908.524000.640.000.000000.3000010.000000. 00000.000000.000000 |
380,000.00 | |
| 16196.17301.9699908.829000.000.000.000000.3000010.000000. 00000.000000.000000 |
380,000.00 | |
| 16196.42000.9699908.829030.000.000.000000.0000000.000000. 00000.000000.000000 |
380,000.00 | |
| 16196.42000.9699908.162400.000.000.C72480.0000000.000000. 00000.000000.000000 |
380,000.00 |