Research Equipment Purchased (Grant-Funded)
Capitalizing specialist laboratory equipment purchased with research grant funds.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Research Equipment (Fixed Asset) | Asset (+) | 45,000.00 | - |
| Cash / Grant Receivable | Asset (-) | - | 45,000.00 |
💡 Accountant's Note
Grant-funded equipment is capitalized as a fixed asset. Depreciation is typically charged to the grant as an allowable cost over the equipment's useful life.
Practitioner & Systems Framework
💻 ERP Architecture
Grant-funded equipment is capitalised in the fixed asset module with a reference to the funding grant code. The initial purchase is recorded as a fixed asset (not expensed) and tagged in the asset register with the grant source, acquisition date, and location. Depreciation is charged monthly to the grant project code as an allowable indirect cost if the grant permits use-charge billing. For US federal grants, equipment with a unit cost above $5,000 is subject to federal property requirements — the institution must maintain an equipment inventory and conduct periodic physical counts.
⚠️ Audit Flags
Auditors verify that capitalised grant equipment is physically present at the institution and tagged per the asset register. Confirm that depreciation charged to the grant is within the grant's approved budget and period. For federally funded equipment, test compliance with property management requirements (tagging, inventory, use for the grant purpose, prior approval for disposition). Verify that the grant funder retains a legal interest in the equipment during the grant period and that the institution seeks approval before disposing of it.
📄 Required Documentation
Purchase invoice and grant approval (if required for single-item equipment above a threshold), asset register entry with grant code reference, physical asset tag number, depreciation schedule, federal property inventory report (for US federal grants), and disposition approval records.
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