Issues of classification of expenses for the purchase of network equipment, in particular Wi-Fi routers, remain among the most discussed issues in the accounting departments of public sector organizations. The complexity lies not only in the technical characteristics of the device but also in the constant changes in the regulatory framework governing budgetary accounting. Incorrect cost allocation can lead to distorted reporting and comments from regulatory authorities during audits.
A modern router is a complex telecommunications device that can act as a standalone fixed asset or as part of a larger system. Expense coding may vary depending on cost, useful life, and intended purpose. In this article, we will examine in detail the current Ministry of Finance requirements and classifiers for the correct accounting of transactions.
To select the correct code, it is necessary to rely on the current instructions for the application of the Unified Chart of Accounts. It is important to understand that Order of the Ministry of Finance of Russia No. 209n It is the primary document defining the rules for grouping transactions. It contains the detail codes used in budget planning and execution.
The main criteria for classifying a router according to KOSGU codes
The first and most important criterion when choosing a code is the cost per unit of equipment. If router price If the expense exceeds the established limit for classification as fixed assets (usually 10,000 rubles, unless otherwise established by the institution's accounting policy), then the expenses are classified as capital investments. In this case, group code 300 "Receipt of non-financial assets" is applied.
If a device costs less than the established limit, it is included in inventory. This is where the sub-article comes into effect. 226 "Other works, services" or 310 "Increase in the value of fixed assets" Depending on whether the router is part of the installation or purchased separately, it's most common for inexpensive devices that don't require complex installation to be coded for the purchase of inventory.
It's also important to consider the device's intended purpose within a specific organization. If a router is purchased to support a server room or is an integral part of a building's local area network (LAN), its cost may be included in the overall system cost. In this case, the costs are allocated proportionally or applied to the increased cost of the entire network.
Code 310 vs. Code 226: What's the Difference When Purchasing?
Distinction between codes 310 And 226 This is a classic dilemma for budget accountants. Code 310 is used if the router is recognized as a separate fixed asset. This is especially true for high-power industrial routers, which are expensive and can operate independently. In this case, the asset is placed on the balance sheet and depreciated.
Code 226 ("Other Work, Services") is often used in conjunction with the expense type code (ETC) 244. This option is appropriate if the router is considered a consumable or if its installation is part of a network setup service. However, the Ministry of Finance, in its clarifications, indicates that the simple purchase of equipment, even if inexpensive, is more often classified under code 224 ("Rental of Property") or 346/349 (if it is inventory), but not as a service unless installation is included.
β οΈ Please note: As of 2022, the detailing of codes for information technology has changed. Expenses for acquiring software and rights to it, and sometimes IT infrastructure equipment, may require the use of special codes, such as 226 or 352, depending on the procurement context.
If a router is purchased under a contract for the creation or modernization of an information system, and its cost is not allocated separately, the costs may be attributed to the code 226 As part of IT work. In this case, the device is immediately written off as an expense, without becoming a fixed asset.
- π Code 310 is used for expensive standalone devices that become the OS.
- π Code 226 applies if the router is part of a network setup service.
- π Code 346/349 is relevant for inexpensive devices considered as inventory.
- π Code 244 is often paired with the above KOSGU as KVR.
The influence of OKOF on the choice of budget classification
All-Russian classifier of fixed assets (OKOF) plays a key role in determining the KOSGU code. For Wi-Fi routers, the most appropriate OKOF code is 320.26.30.23.190 "Other communications equipment, not included in other groups." This code indicates that the device is part of the telecommunications infrastructure.
Having the correct OKOF code helps justify the choice of KOSGU code 310. If the technical documentation or product card classifies the device as a "hardware switching node" or "telecommunications equipment," this is a direct path to capitalization of costs. However, if the device is low-cost, OKOF use is still necessary, but expense classification occurs through group 340.
It's important not to confuse routers with modems or USB dongles. Modems often have the OKOF code 320.26.30.11.190 and may be treated differently, especially if they are built into computers or are peripheral devices. A router, on the other hand, typically functions as a standalone network node.
What to do if the OKOF code is not found?
If there is no exact match in the classifier, the institution's commission has the right to independently determine the code that is closest in functional purpose and record this decision in the protocol.
When preparing procurement documentation, it is recommended to immediately request the product data sheet from the supplier, indicating the OKOF code. This will eliminate unnecessary doubts for the accountant and allow for the correct entry to be immediately included in the financial and economic plan.
Table of correspondence between KOSGU and KVR codes
To facilitate data systematization, we provide a table that will help you navigate the combinations of expense codes (CEC) and the classification of public administration sector operations (CPOA) when purchasing network devices.
| Situation | KVR | KOSGU | Accounting object |
|---|---|---|---|
| Buying an expensive router (> OS limit) | 244 | 310 | Fixed asset |
| Buying a cheap router (< OS limit) | 244 | 346 / 349 | Material reserves |
| Router included in the LAN installation service | 244 | 226 | Intangible asset / Expense |
| Lease of communication channels with equipment | 244 | 224 | Rental service |
It is worth noting that the code KVR 244 ("Other Procurement of Goods, Works, and Services") is the most universal code for network equipment procurement. It is used if the procurement does not fall under specific codes, such as 241 (research and development work) or 242 (procurement for federal needs in certain cases).
The table shows that the same KVR can be combined with different KOSGU codes. The choice of a specific KOSGU code is dictated by the nature of the asset (fixed asset or inventory) and the method of its acquisition (purchase or service).
β οΈ Please note: Classification details may change depending on updates to Ministry of Finance orders. Always check the codes against the current version of the Instructions on the Procedure for Applying the Budget Classification of the Russian Federation before making a payment.
The nuances of metering within a local network
Routers are often purchased not individually, but in bulk to equip an entire building or department. In such cases, the question arises: should each device be accounted for separately or combined into a single inventory item? If the routers are part of a single technological system (for example, a Smart Office system or a unified corporate network), their costs may be cumulative.
If the total cost of the equipment required for the network to function exceeds the limit, the entire system can be accounted for as a single fixed asset. In this case, each individual Wi-Fi router It loses its status as an independent accounting unit and becomes an element of a complex object. This simplifies inventory but complicates the disposal of individual components.
When upgrading an existing network, the cost of new routers can be attributed to the increase in the value of an existing fixed asset (code 310) if the network's performance is improved (increased speed, coverage). If this is simply replacing failed units, the costs are written off as current expenses.
βοΈ Check before purchasing a router
Practical recommendations and typical mistakes
One of the most common mistakes is classifying all routers under code 226 "Other Services." Regulatory authorities often point out that the purchase of hardware is considered property, not services. Even if the contract specifies "provision of internet access," the presence of routers in the specifications requires their registration.
Another mistake is ignoring labeling requirements. Network equipment is often subject to mandatory labeling or certification. Failure to provide the correct documentation may result in registration failure. Always request certificates of conformity and documents confirming the product's country of origin from your supplier, especially in the face of sanctions.
It's also worth paying close attention to your router's software. If the device requires a separate firmware or management system license, these costs may be billed under a different code (e.g., 226 or 261), separate from the hardware.
Answers to Frequently Asked Questions (FAQ)
Can I immediately write off a router as an expense if it costs 15,000 rubles?
No, if your organization's fixed asset limit is set at 10,000 rubles. A device costing 15,000 rubles should be recognized as a fixed asset (code 310) and depreciated. Only items below the limit can be immediately written off as expenses.
Which KVR should I choose for purchasing routers for a school?
For educational institutions, the most suitable code is KVR 244 in conjunction with the corresponding KOSGU (310 or 346). If the procurement is carried out within the framework of the federal project "Digital Educational Environment," special codes may be used, but the basic principle remains the same.
Is it necessary to conduct an inventory of each router?
Yes, if a router is recorded as a fixed asset (code 310), it receives an inventory number and is subject to mandatory inventory. If a router is recorded as inventory (code 346/349) and immediately placed into operation, it is recorded in an off-balance sheet account and is also subject to inventory control, but the procedure may be simplified.
How to account for a router received as a gift (free of charge)?
Property received free of charge is recorded at its current assessed value. The accounting entries will depend on the value: if it is above the limit, code 310; if it is below, code 346. Income is reflected under the corresponding KOSGU sub-item 150.