Concepts

Settings

**Setting up GL Account Derivation Rules

To use APM’s costing function, you must first define how GL accounts will be derived.

Note: GL account derivation rules apply to all sites in the enterprise, and cannot be overridden for individual sites.

When APM derives an account number for a transaction, it can either generate the GL account from two account segments or choose a whole account number. Account derivation is based on the accounting settings selected for the enterprise.

If you are going to interface APM with existing plant cost systems, the account numbers in the two systems must match exactly. If you are using APM alone, simply define the account numbers so that they support the level of cost analysis done by the maintenance department.

The options for deriving accounts and the related transactions are listed in the following table:

Account type:	Account derivation options:	Used in:
Maintenance costs (material and labor requirements on work order tasks)	Asset whole account Cost type whole account Asset segment combined with cost type segment (from the cost type’s resource category, or from the labor rate type)	Resource demands Issues Timecards Purchase receipts Tools issues Tools usage Rented equipment usage Service acknowledgments
Offset account for labor charges	Maintenance group whole account Resource category whole account Maintenance group segment (employee’s group) combined with resource category segment (for the trade)	Timecards
Inventory offset account	Warehouse whole account Resource category whole account Warehouse segment combined with resource category segment (for the material resource)	Issues Tools issues Inventory adjustments Inventory returns Transfers
Resource-specific inventory offset account (for resources that override the normally-derived account)	Site’s whole account Resource whole account Site’s inventory account segment combined with resource account segment (set on the resource)	Issues Tools issues Inventory adjustments Inventory returns Transfers

Using Whole Account Numbers

You can set up APM to use whole account numbers by entering a setting in the First part of each of the account derivation rules, and setting the Second part to “None”. For example:

With the settings shown in the previous example, you would then need to set whole account numbers as the default GL account on your assets.

Using Accounts Derived from Segments

If your organization uses account numbers that are derived from segments, APM tries to verify the derived number before completing a transaction. To verify the number, APM tries to match the account number created from the segments to a whole account number. This means that all account numbers that can be derived by the system must also exist in APM as whole account numbers.

When you post a transaction, if a derived account number cannot be matched you will be warned that the transaction can be saved but not posted. The transaction can then only be posted if the account segments are corrected, a valid whole account number is created for the derived account, or if the account number is entered manually (overridden).

When planning resource demands (for example, a labor demand on a work order), you may see the message “Account [derived account number] has been derived but does not exist”. Depending on your site’s accounting policy, you may be able to save the demand as is, or you may need to enter a valid account number before saving the demand. Transactions created for a demand without a valid derived account can only be posted if the account segments are corrected, a valid whole account number is created for the derived account, or if the account number is entered manually (overridden) on each transaction.

When a work order task is charged to an asset for which a default GL account segment is not entered, and that does not have an ancestor asset with a default GL account segment, APM issues a warning when the work order task is saved. If users choose to continue, they will need to enter the GL account number manually on each transaction.

Note: If the site has a default GL account segment, the system uses that segment when deriving the GL account number for the work order transactions.

For more information, see **Setting Site Accounting Policies, and Troubleshooting Derived GL Accounts.

Once you set up account derivation rules, only the appropriate accounts are available when you view the list of accounts to which you can post charges. For example, if you select to use whole accounts for maintenance charges, only whole accounts will be available to use on maintenance transactions.

Note: If necessary, you can allow users to override the maintenance account numbers derived by APM on each transaction. This option is set on individual work types.

Maintenance Account Derivation

There are two accounting settings that control how maintenance accounts are derived: account derivation for maintenance costs, and the offset account derivation for labor costs. These rules are set at the enterprise level and are the same for all sites.

•	GL account derivation for maintenance costs: This setting controls how maintenance accounts are derived for resource transactions when the cost is charged either to a work order task or directly to an asset. You can use any of the following for maintenance accounts:

•	The asset’s whole account number

•	The cost type’s whole account number

•	A derived account number created by combining the asset’s account segment with the cost type’s account segment.

Materials, tools, and services derive their cost type from the resource category they are part of. Trades derive their cost type from the labor rate type used on the timecard.

For example, you could choose to combine segments using Asset for the first part, and Cost type for the second part. If a user creates transactions on a work order charged to asset Cooling Water Pump 3761, the accounts are derived as follows:

Transaction	Part 1: Asset (from WO)	Part 2: Cost type (from Resource)	Derived Account
Material issue	Cooling Water Pump 3761 GL account segment: 1000 -	Material: Regulator Resource category: Valves - Control Cost type: Materials GL account segment: 9099	1000 - 9099
Timecard	Cooling Water Pump 3761 GL account segment: 1000 -	Trade: Electrician Labor rate type: Labor regular Cost type: Regular GL account segment: 8000	1000 - 8000

 

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GL account derivation for labor charges: This setting controls how the offset account is derived for timecards. If you will be transferring APM generated transactions to your general ledger system, it is a good idea to set up labor offset accounts. You can use any of the following for labor offset accounts:

•	The maintenance group’s whole account number

•	The resource category’s whole account number (from the trade’s resource category)

•	A derived account number created by combining the maintenance group’s account segment and the category’s account segment.

If you set both the first and second parts to “None”, APM will not record an offset account for timecards.

Note: If you use the maintenance group account segment, you must either add each employee to a maintenance group or select a maintenance group when you enter each timecard.

For example, you could choose to combine segments using Maintenance Group for the first part, and Category for the second part. If a user in the Electrical maintenance group creates a timecard for the Electrician trade, the labor offset account is derived as follows:

Part 1: Maintenance group	Part 2: Resource category	Derived Account
Electrical GL account segment: 2012 -	Trade: Electrician Resource category: Labor GL account segment: 8001	2012 - 8001

To set up derivation for maintenance accounts, see To Set up Account Derivations.

Inventory Account Derivation

There are two accounting settings that control how inventory offset accounts are derived: inventory offset account derivation, and the resource-specific offset account derivation for inventory. These settings are entered at the enterprise level and are the same for all sites.

•	GL account derivation for inventory: this setting controls how inventory offset accounts are derived. You can use any of the following for inventory offset accounts:

•	The warehouse’s whole account number

•	The resource category’s whole account number (from the category of the resource used in the transaction)

•	A derived account number created by combining an account number from the warehouse and category segments.

If you choose “None” for both of these settings, APM will not record an offset account on inventory transactions.

For example, you could choose to combine segments using Warehouse for the first part, and Category for the second part. If a user creates a material issue from Warehouse 1, the offset account is derived as follows:

Transaction	Part 1: Warehouse	Part 2: Resource category (from Resource)	Derived Offset Account
Material issue	Warehouse 1 GL account segment: 3001 -	Material: Regulator Resource category: Valves - Control GL account segment: 9090	3001 - 9090

 

•	Resource-specific GL account derivation for inventory: this setting controls whether users can override the derived inventory offset account on individual resources (GL Account Derivation tab, Inventory Accounts tab). When the derived account is overridden, users can select:

•	A whole account number (Resource account)

•	A segment to combine with the site’s inventory account segment (set in the site’s Properties dialog). The segment can be either the first part or the second part of the derived account number.

If the first part is set to “None”, the offset account cannot be overridden on resources.

For example, you could choose to combine segments using Site account segment for the first part, and Resource account segment for the second part. If a user creates a material issue for a resource with an override, the inventory offset account is derived as follows:

Transaction	Part 1: Site account segment	Part 2: Resource account segment	Derived Offset Account
Material issue	Site 1 Site inventory account segment: 5001 -	Material: Regulator Resource account segment: 9095	5001 - 9095

To Set up Account Derivations

1.	From the Site window, click on the tool bar. The Enterprise window appears.

2.	From the Accounting view, select GL Accounts tab. This tab shows a list of all GL account numbers and segments entered in APM.

3.	Click Account Derivation Rules. The GL Account Derivation Rules dialog appears.

4.	Select the Maintenance Accounts tab.

5.	Enter the appropriate settings in the GL account derivation for maintenance costs area:

Setting Name

Description

**Asset hierarchy to use for GL

The hierarchy to use to derive GL account numbers for posting costs. Select the appropriate hierarchy from the list. If an asset does not have a default GL account or segment selected, the system looks up the selected hierarchy until it finds a parent asset with a GL account or segment. Note: If none of the ancestor assets have a GL account segment, the site’s account or segment is used.

First part of the account

The first part of the GL account to use when posting maintenance costs: Asset, Cost type, or None. The system will derive the maintenance GL account by combining this GL account segment with the segment selected for in the Second part of the account. To use whole accounts instead of segments, select either Asset or Cost type for the First part of the account, and set the Second part of the account to None. If you are using whole account numbers, you will need to select whole GL accounts for either each asset, or each cost type, depending on your setting. If you select None in both the first and second parts, no derivation is done. Users can then manually enter an account number on each transaction by selecting to ‘override’ the account.

Second part of the account

The second part of the GL account to use when posting maintenance costs: Asset, Cost type, or None. The maintenance GL account is formed by combining this GL account segment with the segment for the First part of the account. If you are using whole accounts instead of segments, select None in this box.

6.	Enter the appropriate settings in the GL account derivation for maintenance labor charges area:

Setting Name

Description

Labor first part

The first part of the labor offset account. You can select Maintenance Group, Category, or None. If you will be transferring APM generated transactions to your general ledger system, it is a good idea to set up labor offset accounts. APM derives the offset accounts to use for labor transactions by combining the account segment for the employee’s maintenance group, and the account segment for the resource category of the employee’s trade. You can tell APM to use none, one, or both of these segments, and you can set the order of the account segments. If you choose not to use either segment for labor transactions, APM will not record an offset account for timecards. Note: If you use the maintenance group account segment, you will need to add each employee to a maintenance group, or select a maintenance group when you enter each timecard.

Labor second part

The second part of the labor offset account. You can select Maintenance Group, Category, or None. The labor offset GL account is formed by combining this GL account segment with the segment for the First part of the account. If you are using whole accounts instead of segments, select None in this box.

7.	Select the Inventory Accounts tab.

8.	Enter the appropriate settings:

Setting Name

Description

First part of the inventory account

The first part of the inventory offset account. You can select Warehouse, Resource Category, or None. You must set up inventory offset accounts. APM uses these settings to derive the offset accounts to use for inventory transactions. You can tell APM to use one, or both of these segments, and you can set the order of the account segments.

Second part of the inventory account

The second part of the inventory offset account. You can select Warehouse, Resource Category, or None. You must set up inventory offset accounts. APM uses these settings to derive the offset accounts to use for inventory transactions. You can tell APM to use one, or both of these segments, and you can set the order of the account segments. If the Second part of the account is set to None, you must use whole account numbers for either the warehouse or resource category accounts.

First part of the resource account

Enter a setting here to allow derived inventory offset accounts can be overridden on individual resources. Select the first part of the GL account to use for the overriding account number. You can select from Site Account Segment, Resource Account, Resource Account Segment, and None. To use a whole account number, select Resource Account here. Users will then need to select a whole account number on the resources that have an override. The Second part of the account is then automatically set to None. If you select “None”, users will not be able to select an override account on individual resources.

Second part of the resource account

If the derived inventory GL account can be overridden at the resource level, select the second part of the GL account to use. You can select from Site Account Segment and Resource Account Segment. If the First part of the account is set to Resource Account (which is a whole account number), the Second part is automatically set to None.

Note: If you select Site account segment for the resource account derivation, you must select an inventory account segment for each site in the site’s Properties dialog. The current list of site segments is displayed on the Inventory tab. For more information, see Selecting Site and Special Accounts.

9.	Click OK to close the GL Account Derivation Rules dialog.