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Equipment Assembly, Installation, and Repair Payment Guide

This guide provides general information about the payment process related to equipment assembly, installation, and repair services.

Equipment assembly, installation, and repair services, including the related purchase of repair parts, are procured through a UCSC purchase order. This guide does not cover the purchase of equipment. Information on how to acquire equipment and related assembly, installation and repair services is available from the Purchasing Office.

  
  
Payee_Setup_204.pdfPayee_Setup_204
Payee_Setup_Instructions.pdfPayee_Setup_Instructions
Vendor_Electronic_Funds_Authorization.pdfVendor_Electronic_Funds_Authorization
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  • Before you start

    Important information to know.

    1. Special conditions. Be aware of the following special conditions applying to this type of transaction.
      • Assembly represents the completion of the equipment manufacturing process that results in the piece of equipment being ready for installation.
      • Installation involves the placement and/or setup of a fully assembled piece of equipment for use or service.
      • Assembly and/or installation costs are combined with the cost of acquiring equipment to arrive at the total cost of the equipment.
    2. Avoid conflicts of interest. Refer to the appendixes for information covering employee-vendor conflict of interest issues.


    3. Payment. If this is the first time the recipient will be receiving a UCSC non-payroll payment, complete a Payee_Setup_204 form.

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  • Allowable costs

    Important information to know.

    • Installation charges may include the following costs:
      • Materials incidental to the performance of the service
      • Training or consulting in how to operate and maintain the equipment

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  • Ways to pay

    This type of expense is procured using a CruzBuy / Purchase Order. For more information about CruzBuy and the purchase order process, see the CruzBuy online tutorials

    • The Campus Purchasing Card may be used to pay for this service if the vendor is on the Purchasing Office pre-approved supplier list.
    • A direct payment cannot be made to the vendor.
    • Out-of-pocket payment for this type of good or service will not be reimbursed.

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  • Receipt and documentation requirements

    The original vendor invoice must be submitted in order for a payment to be made to the vendor.

    • Email the FAST/AP Office authorizing payment when the original purchase order amount is exceeded by $100 to $499.99.
    • Submit a change order request through CruzBuy for payments of $500 or more over the original purchase order amount.

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  • Applicable sales and use tax

    The chart below summarizes important sales tax information related to equipment assembly, installation, and repair:

    Type of Transaction CA Sales Tax? Notes
    Purchase of new equipment Yes  
    Installation charges that include the cost of materials incidental to installing the equipment No 1
    Assembly charges that include the cost of materials incidental to performing the service Yes 2
    User training for new equipment Maybe 3
    Repair of equipment – cost of repair parts is 10% or less of the total charge for the repair Maybe 4
    Repair of equipment – cost of repair parts exceeds 10% of the total charge for the repair Yes  

    Notes:

    1. Installation of equipment is generally considered to be a service not subject to sales tax.
    2. Assembly is considered to be part of the manufacturing process, the cost of which is subject to sales tax.
    3. If equipment and training are combined into a single price, then the total amount is subject to sales tax.
    4. If the repair is performed outside of California, then the cost of parts is subject to sales tax.

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  • Applicable tax reporting and withholding information
      • A payment for installation costs may be subject to tax reporting and withholding in either of the following situations:
      • Equipment installation is performed at a California location by a vendor who is based out of California.
      • Equipment installation charges are not itemized on the invoice

    Refer to the appendixes for general tax withholding and reporting information.


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  • Common oversights

    Speed up getting a payment processed by avoiding these common oversights.

    • Forgetting to provide the recipient’s social security number or individual taxpayer identification number.
    • Forgetting to request a change order from the Purchasing Office when the amount to be paid will exceed the amount allowed on the Purchase Order.
    • Forgetting to submit a Payee_Setup_204 form for a first-time reimbursement or payment recipient.

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  • Policy references

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  • Where to get help

    Assistance is available for the following topics:


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  • Relevent Appendices

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