Technology Purchasing FAQs

1. Why create more codes?

   The account codes should provide greater detail as to what technology is being purchased. The revised account code structure will more accurately identify and track the university-wide hardware, software, networking and audiovisual equipment purchases. This increased detail enables more effective analysis of information technology purchases, leading to a better understanding of the technology being purchased, identifying support issues and trends, and allowing Rice to more effectively negotiate with vendors. Leveraging Banner, an existing tool that is used campus-wide, eliminates the need for campus departments to implement a shadow tracking system and separate reporting process in order to provide the detail information that will benefit Rice.

2. What is the anticipated result of new account code usage?

   The revised account code structure more accurately identifies and tracks the university-wide hardware, software, networking, audiovisual equipment and various other information technology purchases. This increased detail enables more effective analysis of information technology purchases, which can lead to a better understanding of the technology being purchased, help identify support issues and trends, and allow Rice to negotiate more effectively with vendors. Rather than require campus departments to implement a shadow tracking system and separate reporting process to provide the detailed information necessary, Rice will simply leverage Banner by using more specific account codes.

3. How do computer purchases fit into the 76 account code series for projects – i.e., how is this handled (for example, AV equipment for projects)?

   Financial execution and tracking for capital projects on campus is done through the use of "B" and "P" fund designators. In many instances, expenses coded against capital project funds utilize the "76XXX" account code series, "Total Project Cost". Such projects do not use the "76XXX" series exclusively, however. Where a suitable "76XXX" account code exists, the project manager may elect to use it; for example 76515, "Audio Video Equipment". Where no suitable "76XXX" code exists, it is acceptable to use other account codes. It is suggested that any technology purchases made by capital funds use the new computer related Banner account codes. The only alternative within the "76XXX" series appears to be 76535 "Equipment Cost", which does not provide the desired level of detail.

4. If a computer is initially purchased for one purpose, (i.e., one individual), then in 4 or 5 months, it is used for something else, should that be a concern with regard to coding?

   If the purposed use of a computer changes some months after the initial expense is incurred, the original account code does not have to be revised. However, the fund that was used to purchase the computer may need to be addressed. For example, if a research fund was used, and the computer is no longer being used for the purpose of the fund, the expense may need to be re-allocated. Similarly, the provisions of some gift funds may require expense re-allocations.

5. Boise orders are automatically driven to one account code. Is reallocation required for Boise orders?

   Boise orders most often involve the purchase of standard supplies rather than technology-related items. However, in the event that something other than supplies is purchased, expense transfer forms can be used to properly code the expense in Banner.

6. Please elaborate on software. For example, what is the difference between renewal and maintenance?

   There are various software licensing models and each vendor program needs to be evaluated individually. The terms "renewal" and "maintenance" could have unique definitions based upon the licensing model. The most common licensing models are perpetual licensing and annual subscription licensing.

   • Perpetual licensing ensures the right to use the software at that currently licensed version for as long as necessary. Often a maintenance program will be available as an "add on" feature, providing the right to software patches, bug fixes and in some cases, new versions, or upgrades of the software if these come out during the maintenance period. Some vendors offer technical support as a component of their maintenance program. Many times maintenance is included with the purchase of the software for the first year and annual "renewal" fees cover the maintenance cost after initial purchase. Renewal extends the right to use the software at the latest version on the market until the time of the maintenance expiration.
   • An annual subscription model allows for use of the software only during the term of the agreement. At the end of the agreement term, the two options are agreement renewal or discontinued use of the software. Vendors usually offer patches, bug fixes and technical support as part of this model.

   For assistance evaluating a licensing model, contact Information Technology's Manager, Procurement and Vendor Relations, Charlita Marrs, at x4979.

7. What is the difference in software applications and software operating systems?

   Software operating systems (OS) are essentially what make the computer "go" or "operate". For IBM compatible PC's (Dell, Compaq, Gateway, etc), Windows is the main OS. For Macintosh PC's, it is the applicable MAC OS version, i.e. currently OS X or 10.3, older versions being 8.6, 9.2, etc. The OS for SUN computers is Solaris. Software applications allow the user to perform specific functions, or work on the PC. For example, Microsoft Excel is a spreadsheet application and allows the user to perform specific spreadsheet calculations. Microsoft Word, on the other hand, allows the user to perform word processing functions.

8. How are license renewals for previously-purchased software coded?

   For software, "annual" renewals of ongoing lease or maintenance programs of applications or operating systems (technical support, upgrades, etc.) should be coded to account code 70511.

9. For software maintenance, is the upgrade code based on the individual cost or the lump sum for multiple copies?

   Software upgrade purchases are coded based on the cost of the individual upgrades. For example, 100 upgrade licenses at $100 each, totals $10,000. Even though the total purchase is over $5,000, the purchase is coded against account code 70511 because the cost of the individual upgrades in less than the $5,000 threshold.

10. If a cluster of computers is purchased and the package comes with a rack, is the rack separated from the cluster in the coding?

    If a computer rack is included in a cluster purchase, the rack should be coded separately if possible. This is normally possible if the purchase invoice is itemized in enough detail.

11. What is the life expectancy for items in 75356 (A/V Equipment over $5000) and 75196 (Computer Rack Hardware over $5000)?

    The life expectancy for items coded to 75196 and 75356 ranges from 3 to 8 years.

12. Can copier equipment repairs be coded to computer equipment repair? What about multi-function machines?

    Account coding for maintenance on multifunction machines should be determined by the primary use of the machine. For a copier machine that is tied to a network and used as a computer printer also, a determination must be made as to which function (copying or printing) the machine performs most often. The user makes the determination. Copier maintenance could be coded to 70930, "Maint Contracts - Non-Computer Equip".

13. Many lab equipment purchases have associated computers for support – what is the correct coding?

    If the computer support components of a laboratory system, or integrated package, and components are readily identifiable and broken out on the payment invoice, and the cost is under $5000, then the "704XX" account codes should be used. The computer support equipment is considered an expensed item in this case. In situations where such components are not readily identifiable, or the computer cost more than $5000, the "75XXX" capital purchase account codes apply.

14. What is the code for lab equipment? Is there a different code for lab supplies?

    Laboratory supplies are coded to 72180 as these items represent operational expenses supporting the lab environment. The type of technology-related lab equipment purchased determines the account code used. For example laptops purchased for a lab are coded to 70492, while a copier for lab printing would be coded to 70942. If the equipment is part of a capitalized system purchase, the "75XXX" account code series applies. For lab equipment over $5,000 that is not technology-related use code 75240.

15. For non computer equipment under $5,000 – is that all of the lab equipment not connected to a computer?

    Yes, account code 70940, "Non-computer Equipment under $5,000" is used for all equipment purchases that do not relate to computers. This would include non-computer lab equipment.

16. What are some examples of peripherals?

    Examples of computer peripherals include zip drives, scanners, memory, external hard drives, and personal digital assistants (PDAs).

17. Do peripherals include a keyboard, mouse, etc?

    The peripherals account code would be used for the standalone purchase of a keyboard and mouse.

18. What is the account code for a mouse?

    The standalone purchase of a new mouse is coded to 70493. In this instance, the mouse is considered a peripheral. The inclusion of a new mouse as part of a new desktop computer purchase would not be separated from the desktop for account coding, even if it is itemized on the invoice. The mouse in this case is considered part of the desktop and the entire expense should be coded to 70491.

19. What is the code for printer toner?

    Printer toner is considered a consumable supply and should most often be coded to account code 72190, "Supplies Office". If the primary use of the printer is in a lab, then account code 72180, "Supplies Laboratory" should be used. If the primary use of the printer is for research, account code 72185 "Supplies Research" should be used.

20. If a combination order at Office Depot includes toner, CDs, Mouse, etc., is made with a Rice purchasing card, does the coding all go to office supplies or should each item be reallocated?

    Purchasing card expenses can be reallocated among several different account codes. We should allocate such purchases based on the item purchased and the original receipt details. In this case, the mouse would be coded to computer peripherals and the toner and CD s coded to supplies.

21. Why are Macs and PCs lumped together? Different people support them and it is odd that they aren’t broken out here.

    Separate account codes for Macintosh computers (Macs), Windows computers (often referred to as PCs), and Unix computers are not necessary. Detailed tracking is already possible by using the account code information in combination with the existing vendor information in Banner. For example, a Banner query can produce a list of the payments to Apple under account code 70492 in order to gain insight into Rice's laptop Mac purchases.

    Note: Many purchasers are surprised to learn that Macintosh computers can only be purchased through Apple stores. Apple stores do not sell any other type of computer (such as Windows-based computers or Unix computers). This is why the combination of vendor information and account code is unique to the type of computer (Mac, PC, or Unix).

22. Purchasing Apple products can be very frustrating. Why can't Apple use a purchasing system like the one implemented for Rice by Dell?

    Information Technology's procurement department is currently working with Apple to develop an ordering and delivery system that will address the specific needs of the Rice community.

23. What is wrong with Apple's system for delivery addresses? It's like they only allow one address for both delivery and billing.

    Information Technology's procurement department is currently working with Apple to resolve address and shipping issues. Currently, the best way to insure an accurate delivery address with Apple is for the person making a Rice purchase to include very specific ship-to information on the purchase order. If the purchase is being made by phone, the purchaser should specifically say "the ship-to information is different than the billing address" and ask the Apple sales representative to confirm the ship-to address before ending the phone call.