Office of Procedures, Records, and Forms Business Policies and Procedures Manual

PURCHASING
70.09
Revised 6-12

For more information contact:
   Controller’s Office
   509-335-2013

PRINT SECTION

Expenditure Objects and Subobjects

Enter Coding

Departments are responsible for including object and subobject with the account coding on expenditure documents, e.g., IRI, Departmental Requisition, Departmental Purchase Order, State of Washington Invoice Voucher.

After the Controller’s Office has processed an expenditure, it is displayed on the Budget Statement and the online Account Balances/Detail Application by object and subobject (see BPPM 30.07 and 30.06).

Object

The object identifies a basic expenditure type. Objects are identified as follows:

Obj Expenditure Type Definition
00SalariesSalaries are amounts paid to individuals rendering services as employees under regular full- or part-time appointments.
01WagesWages are amounts paid to individuals who render services as employees and who do not hold regular full- or part-time appointments. Basis of pay is usually hourly or piecework effected by means of temporary employment.
02Personal Services ContractA personal services contract is an agreement with an independent contractor for the rendering of personal services to the University. See BPPM 70.50.
03Goods and ServicesGoods and services include the following:
  • Purchases of services rendered to the University under express or implied contract (except object 02), typically consisting of both labor and materials.


  • Purchases of commodities ordinarily consumed or expended within one year.


  • Equipment items with a unit cost of less than $5000, regardless of funding source other than those required as object 16.


For assistance with goods and services object coding see also State Funds and Other Funds Not Supported by Grants and Contracts below.
04TravelTravel costs are:
  • The cost of contractual services in connection with carrying persons from place to place.

  • Furnishing of accommodations incident to actual travel.

  • Other expenses necessitated by travel.


The definition of travel costs excludes operating and maintenance costs of Motor Pool.
05Computer ServicesComputer services are charges by Information Services (IS) for:
  • Mainframe computer usage

  • Data storage

  • Teleprocessing line charges

  • Data preparation

  • Bursting and decollating reports


Some computing services are merely pass-through charges for ITS and are charged to object 03. These include education and training, systems analysis, programming. and scanning.
06Equipment--CapitalizedCapitalized equipment consists of movable items which have all of the following characteristics:
  • A life expectancy of one year or more.

  • A first cost or initial value of $5000 or more, regardless of funding source.

  • An identity which does not change with use.


For assistance with goods and services object coding see also the tables below.
IncludedIn addition to the above characteristics, the definition of capitalized equipment includes the following:
  • Fabricated materials for equipment if the items meet the criteria indicated above.

  • Accessories or attachments are equipment if the original item was considered equipment and if the attachments or accessories are not replacements for worn out or damaged parts and can only be used with that piece of equipment.

ExcludedThe definition of capitalized equipment excludes the following:
  • Replacement parts

  • Glass or rubber products

  • Rented equipment (unless purchased under lease purchase contract)

  • Animals (except breeding stock)

07Employee BenefitsEmployee benefits are contributions to and expenses of:
  • Retirement plans

  • Pensions

  • Health insurance plans

  • Medical aid

  • Other insurance

  • Other allowances and benefits in addition to or in lieu of regular salary payments.


The employee benefits object code excludes costs paid by employee.

08Grants and SubsidiesGrants and subsidies are amounts expended for subsidies to individuals, e.g., scholarships and fellowships, prizes and awards, room and board, loans, and stipends.
11Telephone Equipment RentalTelephone equipment rental expenses are payments for the installation and rental of telephone systems, switchboards, and accessories.
13Facilities and Administrative CostsFacilities and administrative costs are amounts charged to accounts (normally in programs 11-14 inclusive) representing general University overhead applicable to the conduct of activity recorded in the account.
15Merchandise for ResaleMerchandise for resale costs are amounts expended for the acquisition of merchandise purchased for resale, including purchase costs, freight-in costs, and inventory adjustments less returns and discounts. The merchandise for resale object code is to be used only for proprietary funds (4XX, 5XX series). For all other funds, departments must use the object-subobject code 03-BM (supplies for resale).

16Equipment--NoncapitalizedNoncapitalized equipment consists of assets that do not meet the University's capitalization policy but are subject to special property control:
  • Laptop computers, weapons, or licensed vehicles, regardless of funding source.

  • A life expectancy of one year or more.

  • A first cost or initial value of less than $5000.

  • An identity which does not change with use.


For assistance with goods and services object coding see also State Funds and Other Funds Not Supported by Grants and Contracts below.

18Prior Year Carry ForwardThis object code is used as an offset when allocating prior year balance-forward accounts (object 19) to operating budgets in the current year budget.
19Prior Year Balance ForwardThis object code is used to bring forward the net balance from a prior fiscal year.
STATE FUNDS AND OTHER FUNDS NOT SUPPORTED BY GRANTS AND CONTRACTS
Object Codes for Goods, Services, and Equipment


Select Object #Item Description

Cost

03

Consumables, parts for inventoried equipment, services

any amount

03

Software licensed for one year or less any amount

03

Software licensed for more than one year

less than $5000

03

Equipment (except for laptop computers, weapons, licensed vehicles)

less than $5000

06

Equipment, regardless of funding source

more than $5000

06

Software licensed for more than one year

more than $5000

16

Laptop computers, weapons, licensed vehicles

less than $5000

GRANT AND/OR CONTRACT FUNDS
Object Codes for Goods, Services, and Equipment


Select Object #

Item Description

Cost

03

Consumables, parts for inventoried equipment, services

any amount

03

Software licensed for one year or less

any amount

03

Software licensed for more than one year

less than $5000

03

Equipment

less than $5000

06

Software licensed for more than one year

more than $5000

06

Equipment, regardless of funding source

more than $5000

16

Laptop computers, weapons, licensed vehicles

less than $5000

16

Software licensed for more than one year

less than $5000

16

Equipment

less than $5000

Other Objects

Other objects not commonly used by departments are not listed. Contact the Controller’s Office for a complete listing or refer to the Account Detail/Balances application under “Code Titles.”

Account Detail/Balances is an Administrative Information Systems (AIS) application. See BPPM 85.33 for procedures to obtain approval to view the Account Detail/Balances application.

Subobjects

The subobject identifies the nature of a specific object expenditure. For a complete list of valid subobjects, refer to the Purchasing Services Object-Subobject website at:

purchasing.wsu.edu/object-subobject-coding/

Or the online Account Balances/Detail application (see BPPM 85.33).