Purchasing Equipment Over £100k (Capital)

In addition to the general requirements of the Purchase to Pay Process and Tender Process the following points should be considered when purchasing capital equipment over £100,000. For research equipment you should also refer to the Managing Research Projects process.

1. Identify Costs

Before proceeding with a major purchase it is particularly important that the total financial impact is understood and funding identified. In addition to the initial purchase price, consider:

  • ongoing maintenance and consumables requirements;
  • VAT (contact the Tax team);
  • impact on financial revenue and capital plans is clear (contact your Divisional Financial Controller); and
  • installation, health and safety, and operating issues are addressed, including any legal issues relating to leased or rented premises (contact Estates Services).

2. Complete Business Case

A formal business case is required for all capital equipment purchases over £1m or where central University funds are being sought. The business case must be authorised by your Head of Department and Divisional Office, and approved by:

  • the Capital Steering Group for equipment purchases where central University funding is sought OR over £1m.
  • IT Committee for IT equipment purchases within agreed funding envelopes.

3. Project expenditure

Where the equipment purchase is to be charged to a project, a Project Expenditure Approval Form (PEA) - Equipment Projects (50kb) must be completed and signed by the department and division; and then returned to the Fixed Asset Accountant for project setup. The Fixed Asset Accountant will notify the project leader of the Oracle Financials project code to use when raising a purchase order.