What is the difference between commodity codes and account codes?
A. Account Codes indicate the type expense category for equipment purchased and indicates whether equipment is expensed or capitalized or is not equipment. Equipment account codes are a part of the CFOAPAL: 127nnn equipment with cost from $500 to 2,499.99 161nnn equipment with cost from $2,500 to $4,999.99 163nnn equipment with cost of $5,000 and above Commodity Codes classify equipment purchased. Departments must take extreme care in assigning the correct commodity code for a newly acquired asset because the commodity code determines the useful life of the asset which directly affects the annual calculation of depreciation. For example, the commodity code for computer hardware and peripherals for microcomputers is 204nn and for automotive vehicles and related equipment is 07000.
