FERC Account 393 – Stores Equipment
FERC Account 393 records the cost of equipment used in material warehousing and stores operations.
Definition
Record in this account the cost of equipment used in the receipt, storage, handling, and issue of materials and supplies.
Account 393 captures the cost of equipment used in warehouse and materials management operations. This includes forklifts, pallet jacks, shelving systems, inventory management systems, and other equipment used to receive, store, and issue materials. The warehouses themselves are in Account 390; this account covers the equipment within them.
What is typically included
- Forklifts and pallet handling equipment in utility warehouses
- Shelving, racking, and storage systems for materials
- Inventory management and bar code scanning equipment
- Dock equipment, loading conveyors, and material handling systems
- Warehouse scales and measuring equipment
What is generally not included
- Warehouse buildings and structures (Account 390)
- Transportation vehicles for delivering materials (Account 392)
- Power-operated construction equipment (Account 396)
- Office equipment used in stores administration (Account 391)
- Hand tools used in stores operations (Account 394)
Why this account matters
- Identifies investment in material handling infrastructure supporting all operating departments
- Supports depreciation of stores equipment with varying useful lives
- Required for FERC Form 1 general plant-in-service reporting
- Enables cost allocation of stores operations to using departments
- Provides basis for materials overhead charges included in construction costs
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Disclaimer: The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists, LLC. You should seek formal advice on this topic from your accounting or legal advisor.