Components and Attachments

Owned by Chad
Last updated: Jun 14, 2021
3 min read

Corresponding Policy: See ‘Fixed Asset Building Component Depreciation Intro’ policy.
Corresponding Forms: N/A
Process: Seeking Additional Help on what is a Component vs an Attachment

Terminology: Parent asset = Permanent Tag recorded in the Primary tag field on Component or Attachment tags. (Synonymous with Primary tag)

Attachments
Attachments are tangible, personal property that have an integral relationship with a Parent asset (they become one). There is no dollar threshold limit on attachments but they must meet the following criteria:

  • Must have same Responsible Chart, Organization, Location, Grant & Custodian as Parent asset.
  • Must have same Condition and Title-To as the Parent asset.
  • Must have same User status as the Parent asset.
  • Must have same Functional Use as Parent asset.
  • Must be depreciated and disposed with their Parent asset.

Use account codes 401xx & 402xx for non-proprietary fund asset purchases that meet the criterion of an Attachment. 

Use account codes A80xx for proprietary fund asset purchases that meet the criterion of an Attachment.

Attachments can also be used to reflect changes to an asset where no physical object is involved. i.e. direct pay credit memos, JV's, "adjustments" from 2.0 conversion acquisition sequences etc.

(Note: Attachment costs are automatically added to the Parent Total Cost and Total Net Book Value. Attachment Funding is displayed on the Parent asset as is the Capitalization data.)

Depreciation of attachments
An attachment's funding and capitalization/depreciation information is added to it's parent asset's funding and capitalization/depreciation records when the attachment is performed in Banner Fixed Assets. Once attached, the attachment depreciates in the parent asset's records over the remaining useful life of the parent asset. 

It is PSU policy, that the depreciation start date for all assets (including attachments) is the date the asset is acquired and ready for use. Parent assets have a single stored depreciation start date in Banner. Attachments do not have their own separately stored depreciation start date; however there is an inferred depreciation start date for attachments. The inferred start date is the date the attachment is performed in the fixed asset system. If the month/year the attachment is performed in Banner Fixed Assets is inconsistent with PSU depreciation start date policy, a fixed asset adjustment must be performed to record depreciation for prior periods not taken for the attachment.

Components
Components are tangible, personal property that are related to, but not an integral part of, an existing asset. Components must meet the following criterion:

  • Must meet all requirements of a standalone capitalized asset.
  • Are not consumed in the normal course of business.
  • Have a unit value that meets or exceeds the capitalization threshold.
  • Have a useful life that exceeds one year.
  • Are related to, but not an integral part of, an existing asset.
  • Are depreciated and disposed of separate from Parent asset.

Use account codes 401xx & 402xx for non-proprietary fund asset purchases that meet the criterion of a Component. 

Use account codes A80xx for proprietary fund asset purchases that meet the criterion of a Component.

Components can have different Responsible Organization, Location, Grant, Custodian, Condition Title-To and Status codes from the Parent asset. (Note: Components must be "unlinked" before disposal of the Component or the Parent asset can occur. This is done with the transfer form FFATRAN.) When purchasing assets that do NOT meet the criterion for capitalized non-expendable assets, attachments or components, use the appropriate (20xxx) supplies expense account codes.

Primary, Attachment & Component Relationships

  • Primary Permanent tags can have both Components and Attachments.
  • Components can have Attachments but NOT Components.
  • Attachments can NOT have Components or Attachments.

(Note: If an origination tag was made an Attachment in error, it can later be made into a Component or a standalone permanent tag. Components or standalone tags can NOT later be made into attachments.)