Introduction
Equipment fabrication: a unique individual piece of equipment, or scientific instrument built by Stanford personnel not a vendor or subcontractor. The completed fabricated product must meet the criteria listed for capital equipment and the fabrication criteria listed in the Property Management Manual 2.6 Fabrication.
Equipment fabrications have specific requirements for acquisition, accounting, tracking, capitalization, and reporting processes.
Before assembling the fabrication, you must set up a special fabrication task in Oracle Financials. OSR can assist you with this task. When the fabrication is completed and ready for initial use, the fabrication is “capitalized” and subsequently tracked as an asset in Sunflower Assets and Oracle.
An equipment fabrication must meet all of the following criteria.
be a unique, one-of-a-kind item, fabricated by Stanford
the aggregate cost of materials, supplies, and components must be $5,000 or greater and is included as part of the acquisition cost for the completed asset
the cost of associated labor is included as part of the acquisition cost reported for the completed asset
upon completion, have a useful life of more than one (1) year; or, if on a NASA contract, two (2) years
Ongoing maintenance or repair costs are not included as part of the acquisition cost of the fabrication.
Details on Fabrication Requirements
The university must capture and report the costs of materials, supplies, components, and labor related to bringing the fabrication to completion for initial use.
Equipment fabrications, while a work-in-process, will be accounted for in Oracle Grants Accounting (GA).
To facilitate the process, specific tasks must be established with the Project-Task-Award (PTA) setup in the GA system for each fabrication.
Each fabrication on a Sponsored federal contract will require a FAB task on a capital project and a burdened fabrication task. The task number for both tasks will include the four-digit FAB number assigned by the PMO to facilitate reporting.
Throughout the fabrication process, project personnel must appropriately charge expenses for materials, supplies, labor and other associated costs to each appropriate fabrication task. Upon completion of the fabrication, the tasks will be closed and total cost reported is included in the subsequent asset record. Please see the Property Manual, for details on the fabrication record. Additional guidance may be obtained from your University Property Administrator (UPA).
All directly related costs associated with a fabrication will be accounted for under the designated project tasks and will be available for sponsor reporting (see below for types of allowable expenses). Costs required to bring the item to completion shall be properly documented, supported and retained; supporting documentation shall be made available for audit upon request.
Upon completion for initial use, the fabrication is “capitalized” and subsequently tracked as an asset in Sunflower Assets and Oracle Fixed Assets.
Changes made to completed fabrications are considered modifications and accounted for as a separate task.
Stanford will not capitalize labor and other indirect costs associated with a fabrication; this information is collected and available for sponsor reporting and property management records only.
Ongoing maintenance or repair costs are not included as part of the acquisition cost of the fabrication.