Costing and Accounting for the Repair and Maintenance of Assets

PeopleSoft Maintenance Management is a product within the asset life cycle management suite in PeopleSoft Financials. This product manages the maintenance and repair of an asset. The maintenance and repair of an asset may require parts from inventory. Work orders, created in PeopleSoft Maintenance Management, place demand for parts or items in PeopleSoft Inventory, where demand fulfillment picks, issues, and depletes the part. The technician maintaining the asset may pick up the material or the material might be delivered directly to the job site. Once work is completed, the technician returns any unused material back to PeopleSoft Inventory.

Depletions and returns for work orders are placed in the TRANSACTION_INV table where the transactions are picked up by PeopleSoft Cost Management for costing and accounting line creation.

Issuing Materials to a Work Order

When items are issued from PeopleSoft Inventory to a work order, the transaction group 231 (WM Usage) is used to debit a work order expense account and credit inventory. However, PeopleSoft Maintenance Management can provide overriding ChartField combinations. These account distribution overrides are used with the existing accounting logic in PeopleSoft Cost Management to create the necessary accounting entries. In order to override the ChartField combinations used to create accounting entries in PeopleSoft Cost Management, the Activity ID field must be populated for the work order placed in the TRANSACTION_INV record. If this field is not populated, the Accounting Line Creation process uses the default accounting rules as dictated by the Accounting Rules pages and the Storage Area Accounting pages. In addition to the Activity ID field, PeopleSoft Project Costing requires the following fields to be populated in order to post the transactions to the correct project/work order:

  • Project ID

  • Business Unit PC

  • Resource Type

  • Resource Sub Cat

  • Resource Category

  • Analysis Type

After the Transaction Costing and Accounting Line Creation processes have been run, the data is staged in the CM_ACCTG_LINE record with N in the PC_DISTRIB_STATUS field for the PeopleSoft Project Costing import process to pick up and post to the work order.

Returning Materials to Inventory

Once the repair or maintenance work is completed, the technician may return unused items to PeopleSoft Inventory. Items are returned by entering a negative quantity in the same component used to issue the items originally. During a reverse issue, the transaction group, 231 (WM Usage) is inserted in the TRANSACTION_INV table with a negative quantity.

Note: You cannot return more stock than originally issued to the work order.