Equipment Object Cost/Revenue Analysis

Once a work order has been successfully completed for a given object or objects, the costs and revenues are recorded for the particular equipment object.

Costs on objects are accumulated and revenues generated throughout their life time. In case of a serial object, the object, may be located under several parent objects during its life time. At each placement the costs and revenues vary. Plus the total costs incurred for an object can include project related costs as well. Thus, it is important to have a mechanism by which costs and revenues for a given object can be viewed and analyzed based on the object's placement within a structure.

IFS/Service Management and IFS/Enterprise Asset Management provides you with the means of analyzing these costs and revenues based on a predefined search criteria as well as the placement of the object. Costs and revenues are displayed for the following cost types:

• Personnel
• Material
• Tool/Equipment
• External
• Expenses
• Fixed Price
• Direct Sales
• Contract Invoicing

Costs are recorded when postings are authorized, whereas revenues are recorded when the postings are transferred to IFS/Customer Order. In general, manually entered costs (external, expenses, fixed price) are not recorded for objects, however the revenues generated by them are recorded. In the case of expenses that are transferred from IFS/Human Resources the costs are recorded for the object.

Search Criteria

Before you can view the costs and revenues associated with an object or object structure, you need to set the search criteria, which includes a time interval, selection and currency.

You can either set the search criteria as a default value or select them each time you need to view the information. If you want to set them as default you can do so by following method :

• Specify the values in IFS/Application Services. The relevant parameters are: STRUCTURE_DATE_FROM, STRUCTURE_DATE_TO and STRUCTURE_SEL_TYPE

You can specify a time interval for which you want to view the costs and revenues. This could be an interval of six months, a year, two years, etc, depending on your requirement. When querying for structures, you will only be able to see the objects where costs have incurred during the specified time period (See example described below).

Next specify how you would like to view the costs and/or revenues (i.e., a selection). Select one of the following options:

• Exclude Project Cost/Revenue
• Include Project Cost/Revenue
• Show Project - Displays costs related to a particular project of your choice.

Finally, specify the currency in which you would like to view the costs and revenues. If the values are recorded in different currencies, they will be converted to the currency selected by you.

Costs related to Work Orders with Work Task Steps

In Work Orders with work tasks connected to several work task steps, dividing the costs related to the different cost types among the objects will be as follows;

• If there are work task steps (all with Equipment Objects connected) that are connected to a work task (with or without an Actual Object), the costs on the different task steps will always be distributed equally among the objects on the task steps. 
• If there are work task steps (one with Equipment Object connected and one with another type, i.e.: Linear Asset or Tool/Equipment) that are connected to a work task (without any object) the costs on the different task steps will always be distributed equally among the objects connected on the task steps.

            Example:

Total Cost per Object = (Equipment Object Cost + Linear Asset Cost) / 2

Note: However, we will only record the costs for Equipment objects, but all connection types will be considered when dividing the costs.

The following costs are divided equally among the Equipment Objects associated with work task steps:

• Unplanned personnel costs
• Unplanned material costs
• Purchase requisition costs that are included in the supplier invoices.
• Authorized expenses that are transferred from IFS/Human Resources.

Where material costs are involved there are certain exceptions.

Note: This also applies on Work orders created via PM Group/Merge.

Material Costs

The example below describes a situation where an excess of material have been used in addition to the quantity planned. See table below (assumption: the same material is used for all the objects).

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Equipment Object Cost/Revenue Analysis

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