Supply
A supply item is any article or material which meets any one or more of the following conditions:
- It is consumed in use - supply.
- It loses its original shape or appearance with use – is used up.
- It is expendable, that is, if the article is damaged or some of its parts are lost or worn out, it is usually more feasible to replace it with an entirely new unit rather than repair it (which is not true of equipment).
- It loses its identity through incorporation into a different or more complex unit or substance - parts.
Equipment
An equipment item is a material unit which meets all the following conditions:
- It retains its original shape and appearance with use.
- It is nonexpendable, that is, if the article is damaged or some of its parts are lost or worn out, it is usually more feasible to repair it rather than replace it with an entirely new unit (which is not true with supplies).
- It represents an investment of money which makes it feasible and advisable to capitalize the item.
- It does not lose its identity through incorporation into a different or more complex unit or substance.