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Expenditure Codes: Rentals/Leases

Rentals/Leases

Payments for the use of tangible and intangible property made to the owner at predetermined intervals or at the time of use.

NOTE: Continued payments for rentals and leases do not create a transfer of title to ASU. Lease/purchase agreements, on the other hand, provide for transferring the title to ASU upon completion of a predetermined number of payments.

A copy of Federal Form 1099 is sent to all providers of rental services annually when expenditures total $600 or more, or if royalty fees/copyright payments total $10 or more, except for providers that are colleges or universities, corporations or university departments. The sub-object codes provide information used by the university to generate Federal Form 1099.

Sub-object Code Name Code Number Definition
Object Sub-object
Facility Rent/Lease 7340 01 Payments made to rent or lease structures such as mobile office buildings or commercial office space. These payments do not include expenditures for lease/purchase agreements, which are coded to the appropriate capital sub-object code.
Electronic Data Processing (EDP) Equipment Rental 7340 05 Payments made to rent EDP equipment such as computers and related peripheral items. These payments do not include expenditures for lease/purchase agreements, which are coded to the appropriate capital sub-object code.
Copier/Duplicating Equipment Rental 7340 10 Payments made to rent copier/duplicating equipment. These payments do not include expenditures for lease/purchase agreements, which are coded to 7810 41.
Office Equipment/Furniture rent 7340 15 Payments made to rent office equipment such as typewriters and calculators. These payments do not include expenditures for lease/purchase agreements, which are coded to 7810 17.
Vehicles Rental 7340 25 Payments made to rent vehicles such as automobiles, trucks, etc. These payments do not include expenditures for lease/purchase agreements, which are coded to 7810 13.
Clothing and Uniforms 7340 30 Payments made to rent clothing and uniforms.
Royalty Fees/Copyrights/Licensing Fees 7340 40 Payments made to an author, composer, inventor or licensing organization for the privilege of using the artist’s/inventor’s work for the university's benefit.
Lease and Rental—Other 7340 99 Payments made for rentals and leases not described above.

Definition

Rentals/Leases
Payments for the use of tangible and intangible property made to the owner at predetermined intervals or at the time of use.