In past years, capital outlay purchases were classified under a dual sub-object code system
which was determined by the cost of the item being purchased. Items with a useful life expectancy
of one year, or more, with a cost of $75 ($20 for books), but less than $500 were classified
as sub-object 4XX9 (non-inventory) and items with a useful life expectancy of one year, or more,
with a cost of $500, or more, were classified as sub-object 4XX0 (inventory). To eliminate this inefficiency
in coding, it has been determined that only those items with a useful life expectancy of one year,
or more, with a cost of $500 (including books), or more, should be classified as "capital
outlay" and maintained on inventory.
Effective with fiscal year 2000 business, the expenditure sub-object series 4XX9 will be eliminated
and the definition of capital outlay will be amended to define capital outlay/inventory as any item
with a useful life expectancy of one year, or more, and with a cost of $500, or more. Items purchased
as fiscal year 2000 business which were previously classified as "non-inventory capital outlay"
and coded 4XX9 will instead be classified as the appropriate commodity sub-object. When submitting
encumbered items for DA-118 transactions for fiscal year 1999, please use the revised coding policy
which eliminates the 4XX9 expenditure sub-object codes.
The following expenditure sub-object codes will be closed effective June 30, 1999. Please review all encumbrance
documents that extend beyond fiscal year 1999 for this change in expenditure sub-object coding. This will
expedite the processing of these encumbrance documents and help reduce the number of delays experienced
during fiscal year closing.
4019 Agricultural Equipment and Machinery - Non - Inventory
4029 Household, Laundry and Kitchen Equipment and Furniture - Non - Inventory
4039 Office Furniture, Fixtures and Equipment - Non - Inventory
4049 Professional and Scientific Equipment - Non - Inventory
4079 Road and Highway Machinery and Equipment (Agencies 276, 710) - Non - Inventory
4089 Shop and Plant Maintenance Equipment - Non - Inventory
4099 Other Equipment, Machinery, Furniture and Fixtures - Non - Inventory
4109 Livestock - Non - Inventory
4119 Books and Library Material - Non - Inventory
4129 Reprographic Equipment - Non - Inventory
4139 Microcomputer Systems and Support Equipment - Non - Inventory
4169 Information Processing Equipment - Non - Inventory
4189 Computer Systems, Information Processing or Microcomputer Systems Software - Non
- Inventory
4619 Telecommunications Termination Equipment - Non - Inventory
4629 Telecommunications Switching Equipment - Non - Inventory
4639 Telecommunications Transmission Equipment - Non - Inventory
4649 Radio (Portable) Equipment - Non - Inventory
4659 Radio (Fixed) Equipment - Non - Inventory
4669 Data Communications Equipment - Non - Inventory
Please note these deletions in your copy of the Uniform Expenditure Classification of Expenditure Sub-object
Codes filing (P.P.M. No. 7,002). These deletions should be reflected in a future revision of this filing.
PK:RA:lmm
