Activity: Recharge Centers Financial Policy: I-390 Policies Related to Accounting Administration http://www.indiana.edu/%7Evpcfo/policies/accounting/i-390.html Related Policies: I-150 Capitalization of Moveable Equipment http://www.indiana.edu/%7Evpcfo/policies/accounting/i-150.html I-350 Accrual Accounting http://www.indiana.edu/%7Evpcfo/policies/accounting/i-350.html Additional Forms: Capital Assets Manual http://www.fms.indiana.edu/cams/Manual/Manual.asp 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 University's Financial Information System. Procedure: 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 FIS in the fiscal period in which the inventory was counted.
