Year-End Expenses and Guidelines for Research Purchasing
(From the December 2014 Research Now)
With the end of 2014 fast-approaching, the following is a reminder of how operating expenses will be recorded for the year for Centers, Departments, Core labs, Endowed Chairs, Enrichment and Bridge accounts. Since The Research Institute follows the accrual method of accounting, operating expenses are recorded based on whenthey are incurred, rather than when they are paid.
The following are guidelines to consider when planning any remaining purchases for the year:
Supplies, equipment and other tangible goods:
Items must be received by the Research Institute on or before December 31, 2014 to be considered a 2014 expense. Completing a purchase order by December 31 is not enough; the goods must be in our possession to be considered an expense. If you are completing a requisition the items will be delivered to The Research Institute dock and the Receiving Department will log the items into Navision. The date that the receipt is logged is the date that it will be expensed.
Equipment must be ordered by the Research Institute on or before November 28, 2014. This deadline was set to allow purchasing and vendors enough time to get quotes and negotiate the cost. This also allows Accounting time to receive the invoices from the vendor for payment before 2014 is closed in Navision. Please note that the equipment must still be received by December 31 (see bullet point above) so please work with your buyer to ensure items are ordered in enough time to ensure delivery. Lead times vary by vendor and product.
Non-equipment items must be ordered by The Research Institute on or before December 19, 2014. Please note that the items must still be received by December 31 (see bullet point above), so please work with your buyer to ensure items are ordered in enough time to ensure delivery.
Services must be completed on or before December 31, 2014 to be considered a 2014 expense. Likewise, expense or travel reimbursements will be considered a 2014 operating expense only if the expense was incurred on or before December 31, 2014. (Please note that some exception is made for travel-related expenses due to pre-registration requirements, advance airfare purchases, etc.)
2014 travel reconciliations are due to Accounts Payable no later than January 9, 2015.
If items are not received by December 31, 2014, the expense will need to be charged to 2015 budgets and a valid 2015 cost center will be needed.
If you have any questions, please feel free to contact your buyer or Allison Zang, CPA, MBA, director of accounting at The Research Institute at Nationwide Children’s Hospital.