Corresponding Policy: See ‘/wiki/spaces/~655483049/pages/979043507’ policy.
Corresponding Forms: N/A
Process: Trying to Figure out the Accounting for Personal and Real Property when they are Obtained by a Gift
Gifts of personal property and real property are accounted for as revenue in the year of receipt and either as an expense (if consumed in current year) or capitalized as an asset and depreciated in current and subsequent years.
Non-capitalizable gifts of personal property should be recorded by JV as a revenue using the appropriate 03xxx account code and an expense using the appropriate 2xxxx account code. Non-capitalized gifts of personal property consumed in the current year are not capitalized or recorded in Banner Fixed Assets.
Capitalizable gifts of personal property and real property should be accounted for as follows:
- Submit a report showing gifts of capitalizable personal property and real property to PSU’s Fixed Asset team in CAS for inclusion in the Fixed Assets System and Finance Ledgers.
- For real property, the report should include the name of the donor, legal description, the use to which the property is dedicated, and the estimated value segregated between buildings, land, improvements other than buildings (IOTBs), infrastructure, and land improvements.
- Create records for each asset in the Banner Fixed Asset System using the Master Maintenance form (FFAMAST) utilizing the Gift/Donation action.
- Capitalize the records using the Fixed Asset Adjustment form (FFAADJF) using the SCAP Ptag Capitalization function to post to the capitalization entries to the appropriate auxiliary enterprise, service department, or investment in plant funds.
- Recognize the gift revenue via Journal Voucher. – by crediting the appropriate 03xxx account code against the asset's capitalization fund/FOAPAL where depreciation will be charged and debit the same fund using account E1001.