Financial Administration

Class Code Manual - Rent and Lease Equipment Codes

The University of Wisconsin System


RENT AND LEASE - Equipment/Furniture Class Codes



Rent expenditures are distinguished from lease expenditures through the following criteria:

  1. Rental expenditure codes should be used when the payments over the term of the agreement are $5,000 or less, or when the term of the agreement is one year or less. The terms specified on the underlying agreement are to be used when making this determination, not the terms specified on a purchase order. All payments to agencies within state government are considered rentals.

  2. Lease expenditure codes should be used when the payments over the term of the agreement exceed $5,000 and the term of the agreement exceeds one year. The terms specified in the underlying agreement are to be used when making this determination. No payments to agencies within state government are considered lease expenditures. Installments under a lease agreement, which in substance is a financing arrangement for purchase, should be capitalized.


3180 - LEASE OF DATA COMMUNICATION/DATA PROCESSING EQUIPMENT
(Include Social Security #/Tax Identification # for payments to individuals, sole proprietorships or partnerships)

Charges for lease of the following types of equipment when the payments over the term of the lease agreement exceed $5,000 and when the term of the agreement exceeds one year. The terms specified on the underlying agreement are to be used when making this determination, not the terms specified on a purchase order. Include such items as data processors including peripherals, printers, tape drives, disk drives, modems, system network equipment such as control units, terminals, teletype equipment, front- end processors and software, including site and concurrent (see Appendix 2) licenses, obtained under an arrangement when there is no intent or ability to take ownership. Do not charge maintenance agreements for either hardware or purchased software.

Charge such payments to Code 3211 under the Maintenance and Repair Expenditures category. For rental of data communication/ data processing equipment, refer to Code 3181. Refer to Code 3340 for the purchase of software costing less than $1000. For software costing $1000 or more, refer to Code 4220.


3181 - RENTAL OF DATA COMMUNICATION/DATA PROCESSING EQUIPMENT
(Include Social Security #/Tax Identification # for payments to individuals, sole proprietorships or partnerships)

Charges for the types of equipment identified in Code 3180 when the payments over the term of the agreement are less than $5,000 or the term of the agreement is less than one year. The terms specified on the underlying agreement are to be used when making this determination, not the terms specified on a purchase order. Refer to Code 3340 for the purchase of software costing less than $1000. For software costing $1000 or more, refer to Code 4220.


3182 - RENTAL OF OTHER EQUIPMENT - NONREPORTABLE (CORPORATION, ETC.)

Charges for rental of all equipment other than data\word processing equipment, aircraft and vehicles from a corporation when the payments over the term of the agreement are $5,000 or less or when the term of the agreement is one year or less. The terms specified on the underlying agreement are to be used when making this determination, not the terms specified on a purchase order. This would include rentals of copy machines, postage machines, typewriters, calculators, facsimile machines, furniture, presses, cameras, duplicators, collators, cutters, stitchers, and all other equipment not specifically classified elsewhere. For rental of these types of equipment from an individual, sole proprietorship or partnership, use Code 3189. For lease of other equipment, refer to 3191.


3189 RENTAL OF OTHER EQUIPMENT FROM AN INDIVIDUAL, A SOLE PROPRIETORSHIP OR A PARTNERSHIP (REPORTABLE)(Include Social Security #/Tax Identification #)

Charges for rental of all equipment other than data and word processing equipment, aircraft and vehicles from other than a corporation when the payments over the term of the agreement are $5,000 or less, or when the term of the agreement is one year or less. The terms specified on the underlying agreement are to be used when making this determination, not the terms specified on a purchase order. This would include rentals of office equipment to include copy machines, postage machines, typewriters, calculators, facsimile machines, furniture, etc., and all other equipment not specifically classified. For rental of these types of equipment from a corporation, use Code 3182. For lease of equipment, refer to Code 3190.


3190 - LEASE OF OTHER EQUIPMENT FROM AN INDIVIDUAL, A SOLE PROPRIETORSHIP OR A PARTNERSHIP (REPORTABLE)
(Include Social Security #/Tax Identification #)

Charges for the lease of all types of equipment other than data/word processing equipment, aircraft and vehicles from other than a corporation when the payments over the term of the agreement exceed $5,000 and the term of the agreement exceeds one year. The terms specified on the underlying agreement are to be used when making this determination, not the terms specified on a purchase order. This would include the same type of equipment identified in Code 3182.


3191 - LEASE OF OTHER EQUIPMENT FROM A CORPORATION

Charges for the use of all types of equipment other than data/word processing equipment, aircraft and vehicles from a corporation when the payments over the term of the agreement exceed $5,000 and the term of the agreement exceeds one year. The terms specified on the underlying agreement are to be used when making this determination, not the terms specified on a purchase order. This would include the same types of equipment identified under Code 3182.


4605 - EQUIPMENT AND FURNITURE - CAPITAL LEASES

Cost of leased equipment or furniture when the lease agreement meets the criteria of a capital lease. (Refer to Appendix 2 for guidance.)