TipThe Life Cycle tab lets you edit the acquisition, disposal, and replacement details of the asset. It also lets you view the point scale replacement comparison of the asset.
Tip
To view the Edit Acquire dialog box, click the Edit Acquire link.
With required permission, you can edit the acquisition details of the asset.
1. Search and view the asset record.
2. Click the Life Cycle, Billing tab.
3. In the Acquisition section under Life Cycle, click the Edit link.
The Edit Acquire dialog box opens.
4. Edit the details as required:
o In the Acquire Date field, select the acquisition date of the asset.
o In the Acquisition Number list, select the acquisition number of the asset.
o In the Service In Date field, select the date from when the asset is placed into services.
o In the Vendor list, select the details of the vendor from where the asset is purchased.
o In the Acquire Cost box, type the invoice cost of the asset.
o In the Purchase Order list, select the purchase order used to acquire the asset.
o In the Title box, type the government’s issued asset title number or the Manufacturer’s Certificate of Origin number for non-registered assets.
o In the Replaced Asset Number box, type the asset number of the existing asset that is been replaced.
o In the Acquire Type list, select the funding source for the asset acquisition.
5. Click one of the following:
o Save to save the information and close the dialog box.
o Cancel to disregard any changes and close the dialog box.
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Note: The capitalized cost displayed on the asset record does not include any markup. However, on a work order, the cost of a capitalized repair will include markup if you have configured one. |
Tip
To view the Edit Asset Dispose dialog box, click the Edit Asset Dispose link.
With required permission, you can edit the disposal details of the asset.
1. Search and view the asset record.
2. Click the Life Cycle, Billing tab.
3. In the Disposal section under Life Cycle, click the Edit link.
The Edit Asset Dispose dialog box opens.
4. Edit the details as required:
o In the Service Date Out field, select the date from when the asset is removed from the services.
o In the Disposal Date field, select the disposal date of the asset.
o In the Disposal Cost, type the cost of all commissions, expenses, fees, and taxes associated with the sale of the asset.
o In the Sale Proceeds box, type the amount received from the sale after all commissions, expenses, fees, and taxes are deducted from the sale price of the asset.
o In the Vendor list, select the vendor or auctioneer where you are disposing or selling the asset.
o In the Purchase Order list, select the purchase order used to dispose asset.
o In the Replaced by Asset Number box, type the asset number of the new asset that is replacing the existing asset.
o In the Organization list, select the organization of the asset that is replacing the existing asset.
o In the Disposal Status list, select the disposal status of the asset.
5. Click one of the following:
o Save to save the information and close the dialog box.
o Cancel to disregard any changes and close the dialog box.
Tip
To view the Edit Asset Replace dialog box, click the Edit Asset Replace link.
With required permission, you can edit the asset's replacement details.
1. Search and view the asset record.
2. Click the Life Cycle, Billing tab.
3. In the Replacement section under Life Cycle, click the Edit link.
The Edit Asset Replace dialog box opens.
4. In the Accounting Details section, edit the details as required:
o In the Residual Rate box, type a percentage (as whole number) to calculate the estimated scrap or resale value of the asset at the end of its depreciated life expectancy. The residual rate is a percentage of the asset’s capitalized cost.
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Note: The Book Value box displays the straight line or remaining balance depreciated value of the asset. You can select the depreciation method from the Asset Settings in the Setup module. |
o In the Depreciated Life Expectancy box, type the financial or accounting life expectancy in months in which the asset will be depreciated. Financial or accounting life expectancy can be different than an asset’s fleet useful life.
5. In the Fleet Details section, edit the details as required:
o In the Inflation Rate box, type the percentage (as whole number) to calculate the estimated replacement cost of the asset at the end of its useful life in months.
o In the Salvage Rate box, type the percentage (as whole number) to calculate the type the estimated scrap or resale value of the asset at the end of its economic or useful life expectancy.
The salvage rate is a percentage of the asset’s capitalized cost.
o In the Useful Life in Months box, type the asset's useful life expectancy in months in which the asset’s replacement cost is calculated.
o In the Replacement Collected box, type the amount of cash collected for the replacement of the asset at the end of its useful life.
The replacement collected is not related to depreciation. During the billing process, if the asset’s bill code includes replacement charge, the amount is added to the replacement collected.
o In the Replacement Fund list, select the fund used to purchase the asset or select the fund that is used by the billing process.
The replacement fund is most often used as the billing fund.
o In the Replacement Group list, select the group for use in reporting purposes.
o In the Condition Factor list, select a value between -2.0 and +2.0 that is added to the Total Point Value of the 15 point replacement.
Selecting a negative number extends the life of the asset and selecting a positive number shortens the life of the asset. The condition factor is used when an asset is used in extreme or harsh conditions. For example, an asset that has been driven or used on the beach and being exposed to salt water may have corrosion on the undercarriage causing the condition factor to set to a positive number.
o In the 15 Point Scale Meter list, select the meter used in calculating the replacement meter points.
6. Click one of the following:
o Save to save the information and close the dialog box.
o Cancel to disregard any changes and close the dialog box.
This 15 point system was originally developed for Collier County, Florida using the American Public Works Association Managing Public Equipment, Special Report 55 as a guide.
This program of rating vehicles and equipment won the 1992 NACO (National Association of Counties) Achievement award for “Equipment Replacement Program.
While this rating system may seem simple, it matched the standard curve chart used for replacement 95% of the time in the initial analysis. Additional data was analyzed again one year later with the same results.
There are three factors that make up total points:
· Maintenance Cost Life-To-Date (LTD):
Maintenance Cost LTD is weighed double, on a scale of 0-10, and hit its highest level (10) when the maintenance cost LTD equals the original purchase price. The points are determined by the percentage of the current LTD maintenance divided by the original purchase price. The points for this factor are double to identify “lemons” or high maintenance equipment.
· Life-to-Date Mileage or Hours:
LTD meters are rated on a scale of 0-5. The points are determined by the percentage of the current LTD meter divided by the expected meter life.
· Expended Life In Months:
Life in months is rated on a scale of 0-5. The points are determined by the percentage of the current life in months divided by the useful life in months.
The data grid below shows a comparison of the original replacement (based on life expectancy in months) and calculations to the adjustment based on the FASTER 15 point replacement formula. The maintenance dollars, the meter, and the age of the asset all have an impact on the adjusted replacement figures. These calculations are based on the data entered within the Acquisition and Replacement sections along with the formulas, as listed below:
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Sr. No. |
Parameter/Field name |
Details |
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Point Scale |
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1 |
Service Date In |
If, the value of Service Date In is provided, then, use the given value of Service Date In
If, the value of Service Date In is not provided then, use the value of Acquire Date as Service Date In
If, the value of both Service Date In and Acquire Date are not provided then, use 1st January of the Model Year as a Service Date In |
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2 |
Useful Life (Months) |
If, the value of Useful Life is either 0 or not provided then, use the value of Useful Life as 1
If, the value of Useful Life is provided then, use the provided value of the Useful Life |
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3 |
Current Life in Months |
If the value of Disposal Date is not provided then, the value of Current Life in Months is total number of months between Service Date In and Today’s Date in whole months
If, Disposal Date is provided then, the value of Current Life in Months is total number of months between Service Date In and Disposal Date in whole months |
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4 |
Salvage Value |
Calculated as, (Capitalized Cost) * (Salvage Rate) |
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5 |
Condition Factor |
Static value is used to adjust the Point Scale manually by +/- 2 points |
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6 |
Point Scale Used |
If, 15 Point Scale Meter is either 0 or not provided then, the value is 10.0 else, the value is 15.0 |
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7 |
Age |
Calculated as, (Current Life in Months) / (Useful Life in Months)) * 5.0 Note: Maximum value of Age is 5.00 |
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8 |
Replacement Meter |
The highest points from the calculation of each meter ([Current Meter Reading] / (Expected Life In Meter(s))) * 5.0 Note: Maximum value of Replacement Meter is 5.0 |
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9 |
Maintenance |
Calculated as, ((Maint. $ LTD) / (Capitalized Cost)) * 10.0 Note: Maximum value of Maintenance is 10.0 |
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10 |
Total Points |
When Point Scale = 15.0 If, Age + Replacement Meter + Maintenance + Condition Factor > 15.0 then, the Total Points value is 15.0 else, Age + Replacement Meter + Maintenance + Condition Factor
When Point Scale = 10.0 If, Age + Replacement Meter + Maintenance + Condition Factor > 10.0 then, the Total Points value is 10.0 else, Age + Replacement Meter + Maintenance + Condition Factor |
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Original |
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11 |
Remaining Life |
Calculated as, (Useful Life In Months) – (Current Life In Months) Note: This value can be negative. |
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12 |
Replacement Date |
The Replacement Date is a Useful Life In Months added to Service Date In |
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13 |
Replacement Cost |
Calculate as, Capitalized Cost * (1 + (Inflation Rate / 12)) ^ Useful Life in Months |
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14 |
Replacement Balance |
Calculated as, ((Original Replacement Cost) - (Acquire Capitalized Cost * Salvage Rate)) - (Recovery Collected) |
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15 |
Monthly Replacement |
If, Original Remaining Life > 0 then, (Original Replacement Balance / Original Remaining Life) else, (Original Replacement Balance) |
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16 |
Useful Life Monthly Replacement |
Calculated as, (((Original Replacement Balance) - (Acquire Capitalized Cost * Salvage Rate)) / Useful Life) |
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17 |
Remaining Life Monthly Replacement |
If, Original Remaining Life > 0 then, (Original Replacement Balance / Original Remaining Life) else, (Original Replacement Balance) |
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Adjusted |
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18 |
Remaining Life |
Calculated as, ((Point Scale -(Total Points))/ Point Scale) * (Useful Life In Months) |
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19 |
Replacement Date |
This value is the Adjusted Remaining Life in whole months added to Current Date |
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20 |
Replacement Cost |
Calculated as Capitalized Cost * (1 + (Inflation Rate / 12)) ^ (Current Life in Months + Adjusted Remaining Life) |
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21 |
Replacement Balance |
Calculated as, ((Adjusted Replacement Cost) - (Acquire Capitalized Cost * Salvage Rate)) - (Recovery Collected) |
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22 |
Monthly Replacement |
If, Adjusted Remaining Life > 0 then, (Adjusted Replacement Balance / Adjusted Remaining Life) else, Adjusted Replacement Balance |
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23 |
Remaining Life Monthly Replacement |
If, Adjusted Remaining Life > 0 then, (Adjusted Replacement Balance / Adjusted Remaining Life) else, Adjusted Replacement Balance |
