Equipment Profitability

Abstract

These functions are where the account entries are created:

• Invoicing customer orders - 'CO Invoice. Print' (OIS180)
• Invoicing rental agreements - 'SO Invoice. Print' (SOS180)
• Invoicing leasing agreement - 'SO Invoice. Print' (SOS180)
• Invoicing customer maintenance orders - 'Maint Invoice. Print' (COS180)
• Invoicing agreed warranty claims - 'Maint Invoice. Print' (COS180)
• Depreciation of fixed assets - 'FA Depreciation. Create Account Entries' (FAS100)
• Sale or disposal of fixed assets - 'Fixed Asset. Sell' (FAS130) and 'Fixed Asset. Dispose' (FAS145), through customer order or rental order
• Create cost accounting from stock transactions - 'Internal Account entry. Create' (CAS950) select 'Stock transactions', 'Internal Account Entry. Transfer to GL' (CAS960)
• Create cost accounting from other transactions - 'Internal Account entry. Create' (CAS950) select 'Other transactions', 'Internal Account Entry. Transfer to GL' (CAS960)
• Invoice matching - 'Supplier Invoice. Record' (APS100) and 'Supplier Invoice. Match GR Line' (APS360) for actual costed items (Account entries PP20 227-229 and 270).

The functionality displays the profitability of equipment in M3 and in the Mashup using predefined accounting models including accounting lines.

The solution is based on the 'M3 Order Costing Balance File' including balance keys and column templates.

Background

The Equipment Profitability Model was developed for tracking revenues and costs over time for defined items of Equipment. The solution allows the user to first generate a predefined model with lines reflecting the business revenues and costs over the Equipment Lifecycle. In addition, other business objects (for example, a Customer) can be specified to reflect and analyze the same flows of Equipment Revenues and Costs. These business objects will then be stored against the detailed revenue and cost transactions in a time period based balance table. A maximum of 10 predefined columns are available to deliver this together with the connected inquiry and analytical model.

The Equipment Industries must be able to track all revenue and cost related to a single item of equipment over its entire lifecycle, which can span up to twenty years. Storing these equipment connected accounting records in new tables solves the problem for those cases where the Equipment ID is longer than eight characters; also, it ensures that the use of GL dimensions remains at the correct level for financial reporting.

Limitations

This automated functionality will only work if you use the predefined accounting model with model type=1 including creating the model lines with F14 in 'Accounting Model. Open Line' (CAS391).

The item must be a serialized item (lot control method=2 in 'Item. Open' (MMS001)) since serial number is a part of the dimensions used in the accounting model. The item must be set up as equipment in 'Model/Site. Open' (MOS400) and 'Account mdl unused' is not checked in order to be included in the accounting model transactions in the Equipment Profitability. Account entries from Project Order invoicing in 'Project Invoice. Print' (POS180) and Inter Division invoicing in 'Internal Invoice. Create' (MFS100) are excluded from the Equipment Profitability solution.

The concept of the Equipment Profitability is not changed, but functionality is added to see the outcome in M3 and in a Mashup.

How to use

1. Run (CAS950) and transfer the account entries to FIM for the actual period.

2. Transfer the account entries from the invoicing functions in 'Maint Invoice. Post-process' (COS196), 'CO Invoice. Post-Process' (OIS196) and 'SO Invoice. Post-Process' (SOS196), if the account entries not are directly transferred to FIM.

3. Open 'Analytical Acc Aggregated Balance. Dsp' (CAS340) and select the period, balance key, accounting model and column template.

4. Mark the actual line (on the lowest level of the balance key) to see the balance details, and use related option 12 to get to CAS090, the Balance table.

5. Mark the actual line to see the transactions and use related option 11 in 'Analytical Acc Balance File. Display' (CAS090) to get to 'Analytical Acc Transactions. Display' (CAS095), the Accounting transactions.

6. To see further details, use related options in (CAS095):

   11= Dsp source

   12=Dsp order lines

   13=Agreement.

Outcome

• (CAS095) is updated with the transactions which are the base for the Equipment Profitability.
• (CAS090) is updated with the balances of the account entries in the Equipment Profitability.
• (CAS340) is updated with the aggregated balances of the account entries in Equipment Profitability.

Setup

• Select parameter 290 'Accounting Model is used' in 'Settings - Cost Accounting' (CAS900)
• Update the column headings of the predefined accounting model dimensions on 'Accounting Model. Open' (CAS390/E), according to the list below, create an accounting model in (CAS390) with model with type 1 which is a predefined accounting model:

  1. Item

  2. Serial no

  3. Origin ID

  4. Customer

  5. Agreement

  6. Order no

  7. Budget ID

  8. Life/Product group (depending of what is selected when the accounting model is created)

  9. Struct level

  10. Highest level.

• Create an accounting model in (CAS390) with model with type 1 which is a predefined accounting model. Set up the column templates in CA085 to be used in (CAS340).