Defining replacement or insurance methods

To report on the cost of replacing an asset or on the insured value of an asset, you must define a replacement or insurance calculation method. The replacement method calculates the replacement cost of an asset. The insurance method calculates the insured value of an asset.

This procedure outlines the process for defining replacement and insurance calculation methods.

Define a replacement or insurance calculation method

  1. Access Methods (AM02.1).
  2. In the Type field, select Replacement (R) or Insurance (I).
  3. Define a replacement or insurance calculation method by defining either a compute statement, percent table, or Unit of Production (UOP) table.

    • Optional. Define a compute statement on the Compute tab. For information, see Compute statement

    • Optional. Define a percent table on the Percent Table tab. Percent table

  4. Specify the calculation method for calculating the replacement or insured value of an asset book.
    1. Access Asset Books (AM20.4).
    2. Specify a replacement method in the Method field on the Replacement tab.

      or

      Specify an insurance method in the Method field on the Insurance tab.

      Note: You must run AM185 at least once to calculate the initial insured and replacement values of the assets. Then you must rerun AM185 periodically to get updated insured and replacement values for the assets.
  5. Calculate the insured and replacement values for the assets and review a report on the calculated values by running Insurance and Replacement Calculation (AM185).

Related reports and inquiries

To Use
List all methods you have defined System Setup Listings (AM200)
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