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Need opinion po – How do you record this transaction-PPE or MOOE?
The Appropriation is classified as Capital Outlay with an estimated amount of more than 15k but upon purchase the actual cost is less than 15k. (sic)
#CapitalOutlayRecognition
#CapitalOutlayThreshhold
#GABOTAF
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First, record the transaction as it is. It was appropriated and allotted as CO, purchased as CO and therefore the Property Custodian issued an ARE and recorded it as such. The accountant then should record the same as such. After that, prepare a JEV to reclassify the same as you deemed it correct. Furnish Property Officer a copy of your JEV for the officer to drop the item from PPE records. This way, both records of property and accountant are reconciled. If you immediately record it as inventory, the transaction will turn out as a reconciling item.
Considered MOOE
As per our COA Auditor, it will be a semi expendable item which will be expensed upon issuance. The entry to PPE should meet the 15k minimum amount per item regardless of having budget for Capital Outlay. No requirement in GAM to record as PPE that there should be CO available.
Per Circular Letter No. 2016-7 dated July 20, 2016, P/A/Ps costing P15,000 and below which were initially classified as Capital Outlay shall be reclassified as MOOE. This shall not be considered as realignment. However, the Agency concerned shall submit to the COA and the DBM the list of items reclassified from CO to MOOE for consistency in records. Accordingly, the registries and books of accounts of the Agency shall be adjusted.
Debit Inventory