Overview

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This article will focus on when and how campus will record Equipment Renewal and Replacement Reserves for Recharge Operations for Recharge Activities only

Critical Concepts

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• The Recharge Equipment Renewal and Replacement Fund is a reserves fund used to separate equipment cost recovery funds from the recharge operating fund and record Depreciation on equipment
• This is where funds are accumulated to replace or upgrade equipment for the recharge facility to be able to continue operations
• Not all Recharge Operations will have Equipment Renewal and Replacement Reserve Funds
• Use OFC Fund 17000 Recharge Equip R and R Fund for qualified Recharge Operations identified as Recharge Activity in Sales and Services Activities (SSAs)
• Depreciation will be on a straight-line basis over the remaining life of the equipment, unless it can be demonstrated that some other method is more appropriate
• The life of the equipment normally should be based on the UCOP useful life table
• Track this reserve through Tasks in Projects created for Recharge Operations.  Refer to KBA How to Set Up a Recharge Operation in PPM
• An MCI file must be submitted to separate the Equipment Reserve Funds from Recharge Operating Funds
• Only Equipment related transactions can be transferred to the reserve fund; salary and benefits are NOT permitted
• Since this is a reserve fund, it should never be in deficit

Steps to Take

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1.  Determine the depreciation amount using the depreciation schedule (use the depreciation sheet from the rate proposal as the template and include any adjustments that are applicable)

2.  Download and complete an MCI File (Version date 12.11.2020)

1. Use PPM Expenditure Type 774010 - To/From Renew/Replace Equipment Reserves to transfer between Recharge Operating Fund (Fund 12100) to Recharge Equip R and R Fund Equipment Renewal and Replacement Reserve (Fund 17000)

• • Debit the Operating Fund (Fund 12100) on the Recharge Project
  • Credit the Recharge Equip R and R Fund (Fund 17000)

Account 774010 To/From Reserves needs to be used to process the Debit and the Credit of the transfer to have a net impact on the Account as zero

b.  Enter the following parameters for the fields on the MCI file:

• • Transaction Source: UCSD Manual Import
  • Document:  Equipment Depreciation Repl/Renew
  • Document Entry: Equipment Depreciation Transfer

3.  Create a ticket in Service and Support to transfer funds to Equipment Reserves with the following parameters:

• About: Financial Accounting
• Related to: Oracle Project Portfolio Management
• More Specifically: MCI File Submissions
• Subject: Equip Renewal/Replacement
• Description: Enter the Project Number

 

3.  Attach a copy of the Depreciation worksheet with any adjustments that are applicable to the ticket

4.  Attach the completed MCI file to the ticket and Submit