Washington State University
BUSINESS POLICIES AND PROCEDURES MANUAL

PURCHASING
70.09
Revised 6-12
Controller's Office
335-2013

Expenditure Objects and Subobjects

PDF link

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 30.07 and 30.06.

OBJECT

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

Obj

Expenditure Type

Definition

00 Salaries Salaries are amounts paid to individuals rendering services as employees under regular full- or part-time appointments.

01 Wages Wages 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.

02 Personal Services Contract A personal services contract is an agreement with an independent contractor for the rendering of personal services to the University. See 70.50.

03 Goods and Services Goods 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. See below.
For assistance with goods and services object coding see also the tables below.

04 Travel Travel costs are:
  • The cost of contractual services in connection with carrying persons from place to place;

  • Furnishing of accommodations incident to actual travel; and

  • Other expenses necessitated by travel.
The definition of travel costs excludes operating and maintenance costs of Motor Pool.

05 Computer Services Computer services are charges by Information Services (IS) for:
  • Mainframe computer usage;
  • Data storage;
  • Teleprocessing line charges;
  • Data preparation; and
  • 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.

06 Equipment--Capitalized Capitalized 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; and

  • An identity which does not change with use.
For assistance with goods and services object coding see also the tables below.

  Included In 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.
  Excluded The 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).
07 Employee Benefits Employee benefits are contributions to and expenses of:
  • Retirement plans;
  • Pensions;
  • Health insurance plans;
  • Medical aid;
  • Other insurance; and
  • Other allowances and benefits in addition to or in lieu of regular salary payments.
The employee benefits object code excludes costs paid by employee.

08 Grants and Subsidies Grants and subsidies are amounts expended for subsidies to individuals, e.g., scholarships and fellowships, prizes and awards, room and board, loans, and stipends.

11 Telephone Equipment Rental Telephone equipment rental expenses are payments for the installation and rental of telephone systems, switchboards, and accessories.

13 Facilities and Administrative Costs Facilities 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.

15 Merchandise for Resale Merchandise 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).

16 Equipment--Noncapitalized Noncapitalized 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 below.

18 Prior Year Carry Forward This object code is used as an offset when allocating prior year balance-forward accounts (object 19) to operating budgets in the current year budget.

19 Prior Year Balance Forward This 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


Remarks

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 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:

http://purchasing.wsu.edu/object-subobjectcoding.html

Or the online Account Balances/Detail application. See 85.33.