How to Handle a Fabrication of Inventorial Equipment

Last Updated: March 23, 2023 4:39:34 PM PDT

Fabricated equipment is constructed by UCSD departments for use by the University upon completion and must qualify as a piece of inventorial equipment.

** OFC PROCESS UPDATE**

With the implementation of OFC-PPM there is no longer a need for departments to submit a Fabrication Request to the Equipment Management Office. The fabrication identification (“FAB”) number has been replaced by the COA-POET(AF) and fabrication-related expenditures are now tracked through PPM.

Departments, in cooperation with OCGA, Sponsored Project Finance (SPF, formally OPAFS), and Internal Controls & Accounting - Plant Accounting (formally General Accounting), are responsible for the classification, budget approval, expenditures and accounting of equipment fabrications. Departments are responsible for reporting fabricated equipment to the Equipment Management Office upon completion.

Please submit/forward inquiries regarding expenditure type selection and/or equipment accounting to the Capital Projects team using one of these Services & Support routes:

Submit a new ticket:

From the Submit a Ticket page, select the following from the drop-downs: Ask a Question or Make a Request>Financial Accounting>Oracle Project Portfolio Management>Capital Project Inquiries or Requests

Re-assign tickets as an agent:

From the Case view page, select the following for the required assignment group hierarchy fields: Budget & Finance Services>Capital Project Inquiries or Requests>BFP-GA-CapitalProjects

Once reported as equipment to the Equipment Management Office, it will be recorded in CAMS, assigned a UCID number and added to the inventory of the responsible department.

1. Make sure the fabrication process will result in inventorial equipment.

Fabricated equipment ("fab") is defined as a specialized piece of equipment that is constructed in-house by University personnel. Funding sources may include awards and/or campus funds.

Fabricated equipment is non-expendable, tangible personal property that:

has been physically constructed by a University activity
has a total acquisition cost of $5,000 or more
has a normal life expectancy of more than one year
is expected to be used by the University upon completion

Consult the UC Business and Finance Bulletin BFB-BUS-29, pages 2 and 25, for more detailed information about fabrications. For information on accounting for fabrications, see the UC Accounting Manual, AM-P-415-32.

2. Create a Project and Task for the fabrication in Oracle PPM.

Depending on funding source, work with Sponsored Projects Finance (SPF) or Internal Controls & Accounting (ICA) to create a Project and Task for the fabrication in OFC PPM.

Submit a ticket via Services & Support to request Project/Task creation.
- For sponsor-funded fabrications select the following when submitting a ticket:
  1. I want to: Ask a Question or Make a Request
  2. About: Post Award Financials
  3. Related to: Oracle Award Projects
  4. More Specifically: Create New/Modify Existing Oracle Award Project and/or Task
  5. Subject: Create a project/task for fabrication of equipment
  6. Description: Include project number (if already established), PI, description, and other COA elements if available.
- For UCSD-funded fabrications select the following when submitting a ticket:
  1. I want to: Ask a Question or Make a Request
  2. About: Financial Accounting
  3. Related to: Oracle Project Portfolio Management
  4. More Specifically: Create a New or Modify Existing Oracle General Project
  5. Subject: Create a project/task for fabrication of equipment
  6. Description: Include project number (if already established), PI, description, and other COA elements if available.

Note: For each unique equipment fabrication, the Equipment Management Office recommends considering creation of a fabrication-specific task ("fab-task") under all accountable PPM projects. Additionally, fabrications of multiple pieces of identical equipment (e.g. quantity of 10 microscopes) may be tracked under a single task on all accountable projects.

3. Purchase components and fabricate the equipment.

Purchase components, materials and/or supplies from outside vendors using a Procurement Card or through Oracle Procurement. Such goods may also be acquired internally via recharge.
Purchase fabrication services from recharge operations such as the Campus Research Machine Shop, the Marine Physical Laboratory Machine Shop, or the Marine Science Development Center.

Note: Fabrication/construction work should be performed at least in-part by UCSD departments, and not solely by outside vendors. Custom equipment fabricated by an outside vendor and delivered to UCSD as a complete item ready for use should be treated as a purchase of standalone inventorial equipment.

It is important to account for equipment fabrication expenses in accordance with the Government Accounting Standards Board (GASB) regulations. Contact your General Accounting or OPAFS award/project accountant if you need assistance selecting the correct account and expenditure types when purchasing components, materials and/or supplies.
Include references to the legacy "FAB" number and/or Project and Task numbers wherever possible.

4. Close out the fabrication.

Submit a request to the Equipment Management Office to close or cancel the fabrication using the Services & Support portal.
- Select the following when submitting a ticket:
  1. I want to: Ask a Question or Make a Request
  2. About: Equipment Asset Management
  3. Related to: Capital Equipment Fabrications
  4. More Specifically: Fabrications (Closeouts, Requests)
  5. Subject: Close/Cancel Fabrication
  6. Description: Include the following elements:
    - FAB number (if pre-OFC)
    - Project and task number
    - Final quantity of separate equipment items
    - Operating ledger detail or other expense report(s) consistent with official financial system records (ie Excel export/download)
      - For fabrications of multiple equipment items, be sure to specify the cost of each item.
      - Expense reports submitted by departments should confirm the actual cost and are subject to audit.
Once reported as complete to the Equipment Management Office, the equipment will be recorded in CAMS, assigned a UCID number and added to the inventory of the responsible department.
An asset tag will be mailed to the Departmental Equipment Custodian.

Note: Cancelled equipment fabrications that received a pre-Oracle FAB number should be reported to our office to ensure proper updating of CAMS records.

For more information on equipment, see Equipment Management Basics.

Find answers, request services, or get help from our team at the UC San Diego Services & Support portal or call the Finance Help Line at (858) 246-4237.