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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

A piece of equipment is fabricated through various recharge goods and services 
  • 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