Supplies & Equipment
The purpose of this page is to provide some guides to help distinguish between a supply item and an equipment item. This guide consists of the criteria below for classifying an item as a supply as well as criteria for classifying an item as equipment. The related document contains a detailed list of items which are distinguished as supplies or as equipment. Should you have any questions about an items not appearing on the list, please contact the Mary LaValley Blaine at extension 5508 for clarification.
Criteria for Supply Items
A supply item is any article or material which meets one or more of the following conditions :
- It is consumed in use.
- It loses its original shape or appearance with use.
- It is expendable, that is, if the article is damaged or some of its parts are lost or worn out, it is usually more feasible to replace it with an entirely new unit rather than repair it.
- It is an inexpensive item, having characteristics of equipment, whose small unit cost makes it inadvisable to capitalize the item.
- It loses its identity through incorporation into a different or more complex unit or substance.
Criteria for Equipment Items
An equipment item is a movable or fixed unit of furniture or furnishings, an instrument, a machine, an apparatus. or a set of articles which meets all of the following conditions:
- It retains its original shape and appearance with use.
- It is non-expendable. that is, if the article is damaged or some of its parts are lost or worn out. it is usually more feasible to repair it rather than replace it with an entirely new unit.
- It represents an investment of money which makes it feasible and advisable to capitalize the item.
- It does not lose its identity through incorporation into a different or more complex unit or substance.
State Of New York
Uniform System Of Accounts For School Districts
Office Of The State Comptroller
Municipal Accounting Systems