Cost Tab

Field Name

Function

Purchase Date

The date the equipment was purchased.

Purchase Amount

The amount paid for the equipment at purchase.

Received Date

The date the equipment was received on site.

Service Life

The number of years that the equipment is expected to be used before being retired.

Dep. Date

The date that the equipment will be depreciated or no longer used. It is auto-calculated as: Purchase Date + Service Life = Depreciation Date.

Salvage Value

An estimate of the amount for which the equipment can be sold or salvaged.

Dep. Amount

The current worth of the equipment, auto-calculated using the following method:

• Determine the number of Months of Service Life (MSL):  Service Life*12 = MSL
• Determine the date of Last Full Month (LFM) by noting the current date and determining the last day of the previous month. For example, if System Date = 4/7/2005 then LFM = 3/31/2005; if System Date = 3/31/2005 then LFM = 2/28/2005.
• Determine the First Month of Depreciation (FMD) by looking at the Received Date. If the Received Date is during the first half of the month (14th and before) that month is used. If the Received Date is during the second half of the month, the system considers the next month the FMD. For example, a Received Date of 4/14/2001 would set the FMD to 4/1/2001. A Received Date of 4/16, 2001 would be set to 5/1/2001.
• Determine the Months of Depreciation (MD): LFM - FMD = MD
• Final calculation: [MD(Purchase Amount - Salvage)]/MSL = Depreciation Amount

Book Value

The current value of the equipment, calculated as: Purchase Amount - Depreciation Amount = Book Value

Replace Cost

The price of replacing the equipment.

Hourly Rate

The hourly cost of operating the item.  This calculation is determined by adding all costs associated with a piece of equipment and dividing that sum by the total average hours. Total costs/Total Average Hours = Hourly Rate

This calculation is made for all equipment with an operating status less than 950.