Equipment Object Cost/Revenue Analysis

Once a work order has been successfully completed for a given object or objects (in the case of Route Work Orders) 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:

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 using one of the following methods:

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:

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 Route Work Orders

In Route Work Orders where several objects are involved, dividing the costs related to the different cost types among the objects (if no prior planning is available in the Route PM action) is a difficult task.

The following costs are divided equally among the objects associated with the route work order:

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).

Object Identity	Planned Quantity on PM action	Reported Quantity on Work Order
Object 1	1	2
Object 2	4	8
Object 3	0	0

In cases such as these the costs are calculated and assigned to each object according to the following formula:

Total Cost per Object = (Total Reported Qty x Planned Qty / Total Planned Qty) x Cost

The definitions of the terms are as follows:

Total Reported Quantity -The quantity of the material used in the current transaction
Planned Quantity - The quantity of the material planned for a particular Object on the Route PM action.
Total Planned Quantity - The sum of all the planned quantities for the material on all the Route PM actions associated with the route work order.
Cost - The unit cost of the material plus any other related overheads associated with the issue of material.

Hence, the costs can be calculated and allocated to the relevant object as shown below.:

Total Reported Quantity = 10; Total Planned Quantity = 5

Object Identity	Planned Quantity on PM Action	Reported Quantity on Work Order	Cost ($)	Total Cost divided per Object ($)
Object 1	1	2	25.00	50.00
Object 2	4	8	25.00	200.00
Object 3	0	0	0.00	0.00

Displaying Structure and Object Costs and Revenues - An Example

The related windows displays costs for both Objects and Structures. Consider the following object structure:

Figure 1: Example Object Structure

Assume the time period for which the cost should be shown is 01-July to 31-December

	Object Identity	Superior Object Identity	Date the cost incurred	Displayed in graphical structure	Object Costs ($)	Structure Costs ($)	Comment
1.	A	N/A	-	Yes	0.00	3500.00
2.	A1	A	05-Sep	Yes	1500.00	1025.00	The structure cost does not include the object cost of the parent object (A)
3.	A11	A1	17-Oct	Yes	700.00	N/A
4.	A12	A1	03-Feb	No	500.00	N/A	Not shown in the graphical structure because the costs incurred was not for the given time period.
5.	A13	A1	07-Jul	Yes	325.00	N/A
6.	A2	A	-	No	0.00	500.00	Same as row 4 above.
7.	A21	A2	27-Apr	No	500.00	N/A	Same as row 4 above.
8.	A3	A	29-May	Yes	300.00	975.00	Object shown in the graphical structure, however the object cost is not included in the structure cost for object A.
9.	A31	A3	05-Dec	Yes	975.00	N/A

The above table is also applicable for the object revenues and margins.