Component Changeout in PeopleSoft Maintenance Management

A component changeout involves the swapping of asset components when the failure or replacement of a component is required to maintain a parent asset and extend or retain a parent asset's useful life. You replace a component with a like component. The characteristics and attributes of the new component are associated with the parent asset.

Specific rules apply to a component changeout:

• A component changeout only applies to capitalized child financial assets. You must update changeouts of smaller, non-financial assets directly in PeopleSoft Asset Management.

• A replacement component must have the same asset profile as the components being replaced.

• A replacement component inherits the asset custodian, location, parent asset, and ChartField designation of the replaced component.

• You can mark each asset as repairable or not repairable in PeopleSoft Asset Management, which means that an asset is repaired or overhauled for use in another asset in the future.

• You must establish the default ChartField mapping rules necessary to accommodate asset component changeout transfers in the PeopleSoft Asset Management warehouse on the Warehouse Mapping page.

• Warranties apply to assets involved in a component changeout as they do for all assets on other work order transactions.

To perform a component changeout:

1. Remove the asset component. (Task 1)

   As part of the removal process, you can:

   • Update the asset disposal information on Work Order Task Accounting page.

   • Retire the asset component. Retirement can have various methods of disposal, such as the selling of an asset.

   • Remove the asset for reuse. (Send it back to the Asset Repository.)

     If the asset is marked repairable, when you select Remove for the asset action, you can select a check box indicating that the asset needs repair. (This check box only appears if the asset is marked as repairable in PeopleSoft Asset Management.) When the check box is selected and the work order task is completed, PeopleSoft Maintenance Management notifies PeopleSoft Asset Management that the asset needs repair.

2. Install another asset component to replace the one that was removed. (Task 2)

   When you select the asset action Install, the Asset Action: Install page displays where you can indicate that this is a replacement. You identify the parent component into which you are installing the new component and select the removed component. If the component was removed using a different work order, the work order ID displays along with a description of the removal. You can select an asset that is marked for removal or an asset that is marked for retirement to indicate which asset is being replaced.

Additional rules and principles that apply to component changeouts include:

• You can use two work orders to remove and then install a component, or you can create two work order tasks. You can add the work order task to install a component as long as the task to remove a component is not marked complete.

• Spare parts can be defined as non-financial assets in the asset repository. If these parts are used in the performance of a component changeout, the costs do not flow into PeopleSoft Project Costing. If a non-financial component is required to repair a component and you want the costs to flow to PeopleSoft Project Costing, then you must set the non-financial asset up as either an inventory or non-inventory item.

• If you select parts to repair an asset and the part is not a capitalized (financial) asset in PeopleSoft Asset Management, then it is treated like any other inventory or non-inventory part used to repair an asset. This is not treated as component changeout.

• If a technician removes an inventoried item during a repair, then the inventory personnel must use Express Putaway in PeopleSoft Inventory to enter the part into stock and also must put the part in an inventory storage area location identified as non-nettable if the part is damaged or not available for use. Typically parts that need repair are stored in a non-nettable location so that the quantity does not affect the available quantity.

• You can create a work order without a target asset to capture the costs of the labor and parts needed to repair the inventoried part. Once you repair the part, inventory personnel can move it to a nettable storage area location for reuse.

• For inventoried parts that you remove from an asset so that you can repair the parts, you probably want to enter them in PeopleSoft Inventory under a new item ID and identify then as non-cost items. Identifying the items as non-cost items ensures that when and if you issue the refurbished item to a work order, it will not result in an expense transaction, since the part was previously accounted for in a prior financial transaction.