Rotable Part Pool

Introduction

The rotable part pool feature allows you to define segments of inventory as rotables and group those segments into one or several rotable part pools. The word rotables is commonly used in the MRO Aircraft and Aviation industry to refer to a serial-tracked part that "rotates" between the supplier, stock, the customer, the aircraft, and the repair shop. A rotable part pool is used to manually control the behavior of different processes in the logistics flow.

Types of Rotable Part Pools

There are three different types of rotable pools in IFS Applications. They are:

General Rotable Part Pool Characteristics

The following rules apply to individuals that are connected to a rotable part pool. The part

The characteristics mentioned above will be applied automatically as soon as an individual is connected/added to a rotable pool. The characteristics are automatically removed when the individual is removed from the rotable pool. If there is a demand for an individual connected to a rotable pool, the individual must first be manually removed from the rotable pool and placed back into inventory. Then it can be reserved, issued, etc, just like any other part in stock. IFS Applications has several predefined events in IFS Event Server for rotable pools. These events can be used to monitor almost all changes to a rotable pool. When performing counting, it is possible to exclude rotable pool stock from the counting report. Adding or removing individuals to and from a company-owned or customer-owned rotable part pool does not generate any inventory or accounting transactions. Adding or removing individuals to and from a fixed asset rotable part pool generates both inventory and accounting transactions.

Fixed Asset Rotable Part Pool (FA Rotable Pool)

An FA rotable pool combines the general rotable pool functionality with fixed assets accounting. This is used when individuals are classified as assets and at least part of the cost should be allocated over time, using depreciations. A relation between the FA rotable pool and the fixed asset object (FA object) is created. The relation is not based on a fixed relation between the individual and the FA object, but to be able to complete certain activities, it is required to have an individual connected to the FA object.

From a physical point of view, individuals in an FA rotable pool are stock in inventory. However, from a financial point of view, individuals in an FA rotable pool are fixed assets and not stock in inventory.

Before entering information on the fixed assets for an FA rotable pool, all the activities in the following IFS Application activity diagrams must be done:

Connecting Individuals to FA Objects Using the Acquisition Option

An individual connected to an FA rotable pool is always connected to an FA object. Adding an individual to an FA rotable part pool generates both inventory and accounting transactions:

For M151 to be used, the minimum requirement is to use control type AC2 for Account and the code part used for fixed assets accounting. Both transactions will have transaction code ADDFAPOOL. This is the only transaction that can update rotable pool fixed assets. Normal acquisition transactions will not be allowed for rotable pool objects. To update fixed assets accounting and to activate the FA object, the inventory transactions generated by connecting an individual to an FA object must be transferred to accounting. The general ledger must then also be updated. The combination of an acquisition account and an object ID is required to update fixed assets. The normal activation activity for fixed assets is used also for FA rotable pool objects. When the object is activated, both the object and the FA status will be Active.

Connecting Individuals to FA Objects Using the Import Option

The import option is only useful when initially setting up IFS Applications. It is used when the depreciation of FA rotable pools has been carried out in a previous system. To have the correct information in Fixed Assets on Acquisition Value and Details of accumulated depreciation, it is needed to use the import option. In this scenario, the net book value should be used as an initial inventory value for the individual. The acquisition value and accumulated depreciation must be entered manually when importing the object into IFS/Fixed Assets.

FA Rotable Pool Objects and Fixed Assets Accounting

In most areas, there is no difference between an FA rotable pool object and other objects. This section only highlights the differences. One book, and one book only, must be selected as the rotable pool book. This book must also be selected to create accounting. In object/books for an FA rotable pool object, it is mandatory to include the book selected as rotable pool book. To be used for FA rotable pool object and the rotable pool book, the depreciation methods must use the ACQ.VAL or MOD.ACQ.VAL base value type, and you cannot allow depreciations below the depreciable basis. When default values are fetched from the object group using the Create FA Object activity, only valid depreciation methods will be defaulted.

The following activities, available from the General tab in the Object window, are disabled for rotable pool objects:

The reason for disallowing these activities is to ensure the relationship between the object and the FA rotable pool.

The following activities, available from the Rotable Pool tab in the Object window, are enabled only for FA rotable pool objects:

The reason for using other activities for importing and scrapping is that exclusive posting types are used for FA rotable pool objects. Furthermore it is not possible to use the Add Investment or Change Acquisition Value activities in the Change Object Value window.

Deplete Individual from FA Rotable Pool

When an FA object connected to an FA rotable part pool is scrapped, the connected individual is removed from the FA rotable pool and returned to stock. This will generate accounting and inventory transactions. The new inventory value for the individual will be the net book value of the FA object.

Swap Individual

In cases where, for instance, the oldest FA object should be scrapped and the connected individual is not the one that should be returned to stock, you can swap the connection between the FA objects and the individuals. This will not create any inventory or accounting transactions.

Remove Individual Temporarily from FA Rotable Pool

You can temporarily remove an individual from an FA rotable pool and return it to stock. The intention should be to replace the removed individual as soon as possible. This can be seen as a temporary loan from the FA rotable pool. The fixed asset object is not affected by this function. The individual will be removed from the FA rotable pool and returned to stock with an inventory value of 0. This will not generate any inventory or accounting transactions.

Inventory Part Statistics and FA Rotable Pool

From a financial point of view, individuals connected to an FA rotable pool are fixed assets and not inventory in stock. Therefore, individuals connected to an FA rotable pool are excluded from any inventory part statistics that includes inventory values.

Rotable Pool FA Object Report

This fixed asset report shows pool-related information, acquisition values, accumulated depreciation (up to last year), accumulated depreciation (present year), total depreciation, and net value. You can create the report for an interval of a year and a period. Other selection options are object identity, object group, and book.