If, in any single year, the cost of capital equipment exceeds annual depreciation the difference will be funded by a non-mandatory transfer from the operating to the plant fund account. Please note that transfers of this nature may NOT be included in billing rates. A five-year cycle is considered an appropriate time period for the Specialized Service Center to operate at no better than break even. Use of object codes in the 4XXX series is limited to approved service centers, with the exception of object code 4316, which may be used by departments to distribute copy machine costs. Inter-departmental requisitions which contain inappropriate use of 4XXX object codes will not be processed.
Departments regularly use interdepartmental requisitions to redistribute costs.
In most instances, the object code used to record the original purchase of goods or services should be used for both the debit and the credit. The proper means to redistribute costs is with a journal entry. Use of 4XXX object codes for non-service center interdepartmental requisitions is, in most instances, inappropriate. Various 3822 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The costs of institutional services involving the use of highly complex or specialized facilities such as electronic computers, wind tunnels, and reactors are allowable, provided the charge for the service meets the conditions of paragraphs b thru d below.