Equipment and Asset Trade-In Credit

Policy ID

024-0033

Effective Date

Thursday, May 7, 2020

Division

Finance & Administration

Office of Primary Responsibility

Finance

Summary of Policy

All quotes that will involve a trade-in of equipment require a separate line detailing the amount offered for the trade-in. Additional discounts offered must not be combined with the trade in amount offered. Plus, the vendor/dealer is required to issue a Credit Memo detailing the terms of the agreed upon Trade-In. Also see the Dartmouth Disposal Policy for required instructions and forms for trade-in completion. *Note: The Credit Memo must include Make, Model and Serial Number of item(s) being traded.

Affected Parties

All Groups

Policy Statement

Equipment and Assets between $5k-$24.99k (each piece)

Department/Finance Center/Procurement/ Accounts Payable

  1. Requisition reflects full value of asset (before trade-in reduction)(NC 71xx)
  2. Vendor invoice for full value of asset (before trade-in reduction) (NC 71xx)
  3. Vendor issues credit memo for value of trade-in (NC 71xx track as asset so this flows into 'tank')

Fixed Asset Accountant

  1. New asset brought into fixed asset system at full value
  2. Credit memo "add to asset" that was traded
  3. Retire asset that was traded in

Equipment and Assets over $25K (each piece)

Department/Finance Center/Procurement/ Accounts Payable

  1. Requisition reflects full value of asset (before trade-in reduction)(NC 1700)
  2. Vendor invoice for full value of asset (before trade-in reduction) (NC 1700)
  3. Vendor issues credit memo for value of trade-in (NC 1700 must track as asset so this flows into 'tank')

Fixed Asset Accountant

  1. New asset brought into fixed asset system at full value
  2. Credit memo "add to asset" that was traded in (will credit department when fixed asset reconciliation and charge department process completed – monthly)
  3. Retire asset that was traded in

Contact Materials.Management@dartmouth.edu for additional guidance.

Last Revised

Thursday, May 7, 2020