iBuy & Emburse - How to Determine Start and End Dates for Purchases

Purpose

The purpose of entering service start and end dates, and dates for purchases of tangible goods, is to ensure expenses are categorized correctly for the University's external financial audit. These date fields are a critical financial reporting control since University Accounting and Financial Reporting (UAFR) relies on these date fields to ensure expenses are reflected in the fiscal year to which those expenses relate, as opposed to when payment occurs.

Service and Goods

Services are intangible activities, processes, or performance you pay for but don't physically own.

• Examples include:
  • Software licenses
  • Maintenance agreements
  • Subscriptions
  • Consulting services
  • Cleaning
• How to determine the start/end dates:
  • If the service has a contract or time frame when it will be provided, use the start and end dates of the agreement.
  • If the service is perpetual (never ending) or has no time limit, use the date of purchase for both start and end.

Goods are tangible products you buy and receive.

• Examples include:
  • Electronics
  • Books
  • Furniture
  • Office supplies
• How to determine the start/end dates:
  • If you take ownership in person, use the date of purchase.
  • If the good is delivered, the below shipping terms determine when ownership is taken.
  • When completing requisition forms if the date a good will be shipped or received is not known use your best estimate of the dates given all information you have available.

Shipping Terms & Ownership Transfer

Special Situations

• Credit Card, Bank, or Other Fees: Use the purchase date, even if the expense happens in a different fiscal year. Record the fee amount, not the event amount.
• Bulk Postage Stamps: Treat as office supplies. Use the date of purchase.
• Courier Services (UPS, FedEx, DHL): Use the date the item is handed off to the courier, not when they receive it.
• Contracts with Expense/Revenue Recognition: If a contract specifies when expenses/revenue are recognized (e.g., "earned when paid"), match the start/end dates to the fiscal year when the invoice will be paid.

Other Examples