Updated Prepaid Expense Procedures

[Business Affairs Office News]

Good morning,

The Business Affairs Office Financial Services Department would like to notify University of Oregon (UO) personnel of a change in the procedures to account for prepaid expense. Currently, all expenses for future fiscal years are allocated to the appropriate prepaid expense account code, regardless of dollar amount.

Beginning January 1, 2018:


*         Purchases of less than $5,000 will no longer be amortized over future fiscal years; they will be expensed in the current fiscal year

*         Purchases of $5,000 or more will continue to be expensed across fiscal years

This procedural adjustment will reduce the administrative burden on departments to record and track prepaid expense transactions, and will align prepaid expense guidance with UO's capitalization threshold for other types of assets.

For more information, see prepaid expense procedures<https://ba.uoregon.edu/content/prepaid-expense>.


Thank you,

BAO Financial Services Department

Phil Davis, 6-3524, pdavis at uoregon.edu<mailto:pdavis at uoregon.edu>
Jill Ritz, 6-1256, jritz at uoregon.edu<mailto:jritz at uoregon.edu>
Robbin Howard, 6-1115, rchoward at uoregon.edu<mailto:rchoward at uoregon.edu>




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