## Analyzing Equipment Costs

This chapter provides an overview of equipment cost analysis and discusses how to:

- Generate equipment costs.

- Review equipment costs.

### Understanding Equipment Cost Analysis

As a complement to JD Edwards EnterpriseOne Capital Asset Management (CAM), the JD Edwards EnterpriseOne system provides companies with the ability to perform detailed cost analysis on the equipment that they own and maintain. The JD Edwards EnterpriseOne Equipment Cost Analysis system benefits companies that use a variety of equipment and need to identify current problem areas or track increasing operational costs that point to future problems. For example, you could compare the maintenance costs for a group of related equipment over a number of financial years, or compare the maintenance costs for a type of equipment operating under a number of different operating environments or across different sites.

The JD Edwards EnterpriseOne Equipment Cost Analysis functionality is designed to supplement existing financial inquiries by providing the tools to analyze existing equipment cost information that is based on equipment coding rather than account coding. JD Edwards EnterpriseOne Equipment Cost Analysis enables you to generate and review cost summaries for equipment and assets. Cost summaries are based on relationships that you define for the equipment. These relationships can be hierarchical, which are based on a hierarchy of equipment records; and logical, which are based on category codes that you use when setting up equipment and assets. For example, to summarize costs at the truck level, a trucking company might define a hierarchy relationship between all of the components of a vehicle. A utility company might establish category code relationships that represent different circuits to compare costs.

JD Edwards EnterpriseOne Equipment Cost Analysis enables consolidation of equipment costs into defined groups that are based on the parent/child equipment structure and the equipment category code structure. Revenue, depreciation, purchase, maintenance costs, and statistics can be reported directly for the equipment without a work order. Thus, the primary source of cost information are the Asset Account Balances File table and the Account Ledger table when partial period cost information by account is required. After the cost information is calculated, it is stored and available for ongoing and trend analysis.

JD Edwards EnterpriseOne Equipment Cost Analysis enables you to:

- Summarize costs that are based on the parent/child hierarchical relationship between equipment records.

- Review the total cost of maintaining an equipment assembly when, due to its size and critical role, the assembly has been broken down into components for history and cost tracking.

- Summarize costs that are based on equipment category code relationships between equipment records.

- Review the total cost of maintaining a specific type of equipment or an equipment group within a production plant, including the costs that are associated with the equipment components.

### Generating Equipment Costs

This section provides an overview of equipment cost generation and describes how to:

- Generate equipment costs online.

- Generate equipment costs in batch.

#### Understanding Equipment Cost Generation

You can generate the costs for the equipment cost analysis both online and in a batch. Both methods support the same functionality. We recommend using batch mode if both the group and subgroup include a large equipment selection, many levels within the parent/child equipment hierarchy, or a date range that requires a long processing time.

You run the Generate Equipment Costs program to generate equipment costs for the equipment groups or subgroups that you have defined. The program generates the costs for each piece of equipment, based on the equipment cost analysis rules that indicate from which accounts it should retrieve costs. Period totals can be retrieved from the Asset Account Balances File table, whereas partial period cost information by account is available in the Account Ledger table. The equipment costs for equipment components are rolled up to the parent level if the option to include children was selected for the subgroup.

The equipment cost analysis information is stored by group, subgroup, and date range in the F1383 table. The advantage of storing this information is that you can compare the costs that are associated with similar groups of equipment from different areas of the organization and recognize trends in the cost of groups of equipment over different time periods. You can regenerate costs whenever necessary. The system stores the generation dates for reference.

If you generate the costs for an equipment group or subgroup through batch, you access the Generate Equipment Costs program (R13801B) from the Equipment Cost Analysis menu. You can use either of these methods to do this online by accessing:

- Work With Equipment Cost Analysis form.

  Select Generate Cost from the Row menu.

- Equipment Cost Detail form.

  If the costs for any subgroup within the equipment group that you are analyzing have not yet been generated, the system displays a warning message. You can then generate the costs.

#### Forms Used to Generate Equipment Costs Online

Form Name | FormID | Navigation | Usage
Work With Equipment Cost Analysis | W13801B | Equipment Cost Analysis (G13ECA), Equipment Cost Analysis - Equipment Equipment Cost Analysis (G13ECA), Equipment Cost Analysis - Asset | Work with equipment cost analysis.
Equipment Cost Detail | W13801A | Select the asset or equipment group on the Work With Equipment Cost Analysis form, and then select Cost By Equipment from the Row menu. | Generate equipment costs online.

#### Generating Equipment Costs Online

Access the Equipment Cost Detail form.

If the costs for any subgroup within the equipment group that you are analyzing have not been generated yet, the system displays a warning message. You can then decide whether to generate the costs.

#### Generating Equipment Costs in Batch

Access Equipment Cost Analysis (G13ECA), and select Generate Equipment Cost.

### Reviewing Equipment Costs

This section provides an overview of review options for equipment cost analysis, lists prerequisites, and describes how to:

- Review equipment costs by equipment or account.

- Review equipment costs by work order.

#### Understanding Review Options for Equipment Cost Analysis

After you have generated the costs for the equipment that is included in the equipment cost analysis definition, you can use the Equipment Cost Analysis program (P13801) to view the costs and analyze them. The program retrieves the cost information that is calculated and stored in the Equipment Analysis Costs table (F1383).

You can review costs by:

- Equipment

- Account

- Work order

When you review equipment costs and select to include children, the program displays the parent/child equipment structure with rolled-up costs that are based on the parent hierarchy. The types of cost that the system displays depend on how you have set up the inquiry columns.

If you view the cost analysis by equipment, the program displays the summarized costs by equipment number, based on a particular combination of equipment group and subgroup. This approach enables you to analyze the total cost of individual pieces of equipment within a subgroup.

Note. If equipment has equipment components and you have activated the option to include children, you can also view costs for the equipment components.

If you view the cost analysis by account, the program displays the summarized costs by account number. This approach enables you to analyze the total cost of individual subgroups based on the general ledger account structure.

You can also view equipment cost detail information for specific pieces of equipment by work order. You might use this option to further investigate a piece of equipment that is incurring high costs. By viewing the work orders, you can identify those work orders that contribute the highest costs to the piece of equipment.

Based on the setup of the equipment cost analysis rule and the definition of inquiry columns, you can view different types of financial information (for example, revenue, cost, maintenance costs, and equipment statistics, such as hours, miles, and fuel consumption). You can also display budget amounts for the equipment groups and compare the budget amount with actual costs to date.

To exclude any equipment from the cost analysis, select the piece of equipment to exclude and select Exclude/Include from the Row menu.

The system issues a warning message that the exclusion requires a regeneration of the subgroup costs. If equipment has equipment components and you have activated the option to include children, excluding parent equipment also excludes its children.

Responding to the warning message regenerates the cost and the piece of equipment is marked as excluded.

#### Prerequisites

Before you complete the tasks in this section:

- Ensure that you have defined the cost analysis rules for this equipment cost analysis.

- Ensure that you have generated the cost for the equipment group that you want to analyze.

#### Forms Used to Review Equipment Costs

Form Name | FormID | Navigation | Usage
Equipment Cost Detail | W13801A | Select the equipment group from the Work With Equipment Cost Analysis form, and then select Cost By Equipment from the Row menu. | Review equipment costs by equipment or by account. Access the account view by changing the display to Cost by Account. You can also access the account view by selecting Cost by Account from the Row menu on the Work With Equipment Cost Analysis form.
Equipment Cost Detail By Work Order | W13801F | Select a piece of equipment for which you want to review work order cost information on the Equipment Cost Detail form, and then select Detail by WO from the Row menu. | Review equipment costs by work order. Access detailed cost information by selecting the work order and then select WO Cost from the Row menu.

#### Reviewing Equipment Costs by Equipment or Account

Access the Equipment Cost Detail form.

#### Reviewing Equipment Costs by Work Order

Access the Equipment Cost Detail by Work Order form.