Understanding Asset Cost Analysis

Use the Asset Cost Analysis program (P122101A) to analyze the maintenance and repair costs of your assets using the asset cost ledger, and to determine whether it is cost-effective to repair or to replace a machine. This program retrieves the asset cost data from the Fixed Assets module, even before it is posted to the GL, thus providing you with a real time analysis of your asset cost. When you run this program, the system displays these values for an asset, based on which you can determine the actual worth of an asset:

• Net Book Value

• Revenue Earned

• Ownership Cost

You can also use this program to generate the Inception to Date Balances report (R12424A), and also to review the G/L transactions for the asset account. This report displays the netbook value, revenue earned and ownership cost of an asset from the date of its inception to the current date. You can analyze this data to identify assets with high maintenance costs, and compare the costs with the useful life of the asset.

You can use the Asset Cost Analysis program to review the asset cost data based on any of these time periods and take decision on the worth of retaining, fixing, or disposing an asset:

• Current Period: When you select this option, the system displays data for the current fiscal year and period.
• Year to Date: When you select this option, the system displays the year to date costs of the asset.
• Inception to Date Report: When you select this option, the system generates the Inception to Date Balances report.
• Year/Period: When you select this option, the system enables the fields to enter the year and the period. You can specify a year and a period to review the data pertaining to that period.