Calculating Asset Replacement Costs
This topic provides an overview of asset replacement cost and lists the page used to calculate replacement cost.
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Page Name |
Definition Name |
Usage |
|---|---|---|
|
Calculate Replacement Cost |
RUN_AMRCCAL |
Calculate asset replacement cost. |
Your tangible working assets are one of the greatest investments made in any enterprise. As certain assets approach the end of their useful lives, you need to be able to anticipate expenditures to replace these assets. You may need to get a replacement cost as you explore insurance coverage for property, equipment, computers, and other assets. Similarly, you may need to replacement calculate the cost in the event of an unforeseen loss, such as when plants or equipment are destroyed in a fire or a natural disaster.
PeopleSoft Asset Management provides the Calculate Replacement Cost application engine (AMRCCAL) that will make a replacement cost calculation of all assets, assets with new activity, or a selected range of assets, based on an index that you apply to the equation, such as the consumer price index (CPI) or other indexes you maintain.
Replacement cost of an asset should not include asset retirement cost. See Accounting for Asset Retirement Obligations