Recharge Centers

Activity: Recharge Centers
Financial Policy: Inventory, FIN-ACC-390
Capitalization of Movable Equipment, FIN-ACC-150
Accrual Accounting, FIN-ACC-350
Related Policies: N/A
Additional Forms: FMS Capital Asset Standrad Operating Procedures

Things to Know:

  • Recharge center is an entity whose primary mission is to provide a good or service for the convenience of Indiana University.
  • Purchases for resale are expenditures for products or services that will be resold. The title of the object code used should state that it is purchases for resale.
  • Recharge centers will inventory all items that were purchased for resale that have not been sold. Also, the items that were purchased for use in the production process will be inventoried. The valuation method used for recording inventory should be specific identification or average cost or First-In First-out (FIFO), or Last-in First-Out (LIFO) or Retail inventory method. This inventory value should be recorded as an asset in the Kuali Financial System.
  • Procedures: All items that are purchased for resale should be coded with the title "purchases for resale". Any other items that are used in the final product or service should be identifiable in the University's accounting records. All of the inventory items that are purchased for resale or the items used in making the product should be counted during the physical inventory. The physical inventory should be recorded in the KFS in the fiscal period in which the inventory was counted.