Work Activity Cost

The system tracks usage and reports the costing associated with that usage against the total cost of completing the activity.

Resource Estimates

Activity resource requirements determine the original estimates or planned amount for labor, equipment, materials and other on activities. Even canceled activity resources requirements are calculated as part of the original estimate. The original estimate is the value of the resource requirement at the time the work order was initially approved and is snapshot into a separate column when the initial approval happened. If an approved work order is reopened to add new activities and resource requirements and resubmitted for approval, those new resource requirements won’t have an initial estimate (it will be zero). The system calculates a revised estimate to reflect the current value of the resource requirement. For example, a resource requirement was initially planned for 10 pumps at $10.00 each. Upon the initial approval, the initial estimate will be stamped with $100.00 and the revised estimate is also $100.00. If the planner changes the requirement to 15 pumps instead, the original estimate will stay at $100.00 and the revised estimate will be $150.00. Canceled requirements are not calculated as part of the revised estimate.

Committed Amount

Committed amount is the total of costs applied to the activity due to direct purchase costs that are committed when a purchase order is issued. This value uses the issued amount, not closed or completed, since the costs are considered as committed once the purchase order is issued to the vendor. This amount reflects the total due to the vendor, as full or partial invoice amounts are closed. It does not reflect amounts that are completed or closed.

For example, a purchase order line has been issued for 10 pumps at $10 each. Assume 4 pumps were received and a partial invoice line of $40 was issued for the 4 items. This partial invoice for $40 reduces the committed amount — $100 minus $40 = $60. Once the other 6 items are received, the purchase order line moves to closed status and it does not have an impact on the committed amount.

Unplanned Resources

Unplanned resources are defined as issued or returned materials or timesheet entries that were not part of the original resource requirements or estimates. Activities include a zone which lists any unplanned activity resources.

Fulfilling Material Requirements

Material requirements can be fulfilled in the following ways:

For inventory, if the issued quantity is greater than or equal to the planned quantity, the system automatically changes the resource requirement to Fulfilled. This happens in cases where the crew has checked out all the planned quantity from the storeroom.
For direct purchased material, if the received quantity is greater than or equal to the planned quantity, the system updates the resource requirement to Fulfilled. This method of automatic fulfillment is only applicable to material.
For inventory material, when the resource requirement is approved (as part of the WO approval), the system puts the quantity as Pending Demand on the storeroom. Once the activity material requirement becomes Active, that quantity becomes On Demand (and Pending Demand is closed out or becomes zero).
Materials can also be “reserved”. If the storeroom has enough quantity, then that quantity becomes reserved for the given amount. The “reserved” material can still be issued to a different activity since it is only an indicator and not “On Hold”. The reserved quantity provides storeroom managers with visibility into what is to come so they can order materials accordingly.

Note that, although it may not be part of work, when material is issued from a storeroom, material issue will reduce demand by the issued quantity or the original planned quantity, whichever is less. This is to prevent a negative on demand quantity (if the issue quantity is more than the planned quantity).

When an activity is completed, it updates all its resource requirements, including material requirements, to Fulfilled to close out any remaining On Demand/Reserved quantity.