Concepts

Settings

Site Accounting

You can use APM to collect and view the maintenance costs required to analyze your maintenance practices and make decisions. In addition, you can export the general ledger (GL) transactions to an accounting package. There are three elements involved in collecting and posting costs: Financial Periods, GL Accounts, and Cost Types. These items are described below, followed by an example of what happens when you post costs and a description of where you can view costs and their transactions.

GL Accounts

GL accounts in APM are text strings used to create accounting transactions for each transaction you enter in the system. You can set up these strings to match your accounting department’s general ledger so that you can import the accounting transaction entries into your accounting package. Alternatively, you can enter a simplified GL account system that supports your basic maintenance functionality. If you do not plan to export accounting transactions from APM, you can enter one account number (a whole account) and use cost types to collect and view charges to the level of detail required by the maintenance department.

Deriving Account Numbers

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.

Whole Account Numbers

When you create whole number accounts, you can assign rules and approvers to the accounts. For example, you can restrict an account number from being used if there is no asset or work order information on the transaction.

The GL accounts that you enter for temporary accounts (for example, a warehouse’s In-transit account) or for special accounts (for example, the RNI account) must be valid, whole account numbers.

Matching Derived and Whole Account Numbers

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.

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

 

•

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

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

Site Accounts

If your GL account derivation rules use asset or site accounts, you may need to select specific GL accounts or segments for each site. You can select these accounts in the site’s Properties dialog.

Maintenance Account or Segment

This is the GL account or segment associated with the site. This account or segment can be used when the system derives GL accounts associated with maintenance costs.

If the derivation rules for the enterprise use an asset account or segment, you might want to select an account or segment for each site. For example, enter the site’s account segment if you want the derived account to always begin or end with the same account segment (in this case, do not select segments for individual assets). Or, you can enter a site account segment as a “fail-safe” to be used if an asset account cannot be found when APM searches up the asset hierarchy.

Inventory Account or Segment

The GL account segment to use when the regular inventory offset account is overridden on the resource.

Enter a segment here if the Site account segment option is selected in the Resource specific GL account derivation rules (in the enterprise accounting settings). This site account segment will be combined with the resource account segment to derive the inventory offset account number.

TOP

Special Purpose Accounts

In addition to entering your GL accounts and account segments, you might need to select one or more of the following special purpose accounts:

Received Not Invoiced Account

The Received Not Invoiced (RNI) account is the name of the account to use as the offsetting account for purchase receipts. The RNI account is used for goods that have been received but have not yet been paid for. When material is received, the cost of the receipt transaction is charged to the GL account identified on the purchase order line, and the offsetting account is the RNI account.

You must select an account that is a whole account number.

The Default Offset Account for Maintenance Cost Adjustments

The account to use as the offsetting account for maintenance cost adjustments.

Typically, you will use a miscellaneous maintenance cost transaction in any of the following situations:

•	The wrong work order task was charged on a group of transactions

•	The wrong asset to charge was identified on a work order task, resulting in all of the work order task’s costs being charged to the wrong asset

•	The wrong cost type was charged on one or more transactions

Two miscellaneous maintenance cost transactions are entered: a credit and a debit. You can set up the default account to use as the temporary maintenance cost adjustment account. It must be a whole account number.

Serialized Inventory Account

The Holding Account for Serialized Units is used to hold the value of issued units:

•	When a serialized unit is issued, the GL account to charge is set to the Holding Account for Serialized Units account.

•	When the serialized unit is returned to inventory, the GL account to credit is set to the Holding Account for Serialized Units account.

The Holding Account for Serialized Units account overrides the account that would normally be derived based on the work order task, asset, and cost type. This account must be a whole account number.

Tools Account

The Offset Account for Tools Usage Transactions is used to hold the value of issued tools as follows:

•	When a tool is issued, the GL account to charge is set to the Offset Account for Tools Usage Transactions account.

•	When the tool is returned to inventory, the GL account to credit is set to the Offset Account for Tools Usage Transactions account.

The Offset Account for Tools Usage Transactions account overrides the account that would normally be derived based on the work order task, asset, and cost type. This account must be a whole account number.

Consignment Account

The Consignment Usage Not Invoiced account (CNI), is used as the offset account on consignment issues. This account is similar to the purchasing account Received Not Invoiced (RNI). If necessary, you can use the same account for both purchasing receipts and consignment issues. Simply identify the same account for both uses. You must select a whole GL account number.

Accounts Payable Account

The Accounts Payable (AP) account is the offsetting account for invoicing entries. A financial system entry is generated to the AP account for each invoice posted in APM. The entry is for the full amount of the invoice. This entry offsets the values charged to the invoice line distribution accounts and the purchasing accrual accounts. This account must be a valid whole GL account number.

Invoicing Self-Balancing Account

The system uses this account to correct small differences in an invoice’s debit and credit entries due to rounding or currency exchange rates. Normally, this account will not be used.

This account is not used when the system automatically balances an invoice using the automatic balancing threshold. Automatic balance differences are entered in the distribution accounts for the invoice lines. This account must be a valid whole GL account number.

TOP

Cost Types

You can enter a hierarchy of cost types to which you charge the costs of transactions in the system. If you are using GL account numbers in APM that match the accounting department's general ledger, you should create at least one cost type for each account. If you are using simplified GL account numbers, you can create the hierarchy to the level of detail needed by the maintenance department.

The cost type hierarchy usually includes a level for each of the four resource types (trades, materials, services, and tools), plus a level for miscellaneous expenses. In addition, you can provide a further breakdown to collect the detailed information you want. For example, you can include cost types for regular and overtime labor below the labor entry.

You can only charge costs directly to the lowest-level cost types. If you have regular and overtime labor below trades, you must choose one of those two categories for all labor costs; you cannot charge directly to the labor entry.

The following is an example of a cost type hierarchy:

In order to view accurate cost summaries on views such as the Costs view on the Work Order window you must:

•	Set a top cost type for the enterprise

•	Add summary cost types to the cost type hierarchy

•	Set the total cost types for each site (in the site’s Accounting Settings dialog)

•	Ensure that all cost type children are correctly located in the cost type hierarchy (for example, the Regular Labor cost type should be a child of the Labor cost type).

TOP

Financial Periods

A financial period is an enterprise setting used to group and summarize objects such as costs and indicator readings for a period of time. Financial periods group and summarize costs by cost type. You can create financial periods for each year, quarter, or month.

APM enables you to select the start and end dates for financial periods. For example, if your department managers report their costs each month, it will make sense for you to create a financial period for each month. You can have multiple financial periods overlapping; for example, one month could be included in the yearly period, a quarterly period, and a monthly period.

Note that you must create the financial period(s) before you post costs. If you post a cost to February before you create the February monthly financial period, the posted cost will not appear in February’s total. If necessary, your implementation consultant can arrange a data conversion to ensure that all applicable costs appear in the correct places.

TOP

Posting Costs

Whenever you post a transaction in APM, you are posting costs to a variety of places. For example, if you post a receipt of a purchase order created for a work order, the following costs are posted and rolled up the hierarchies, given the following setup. The person who enters the transaction indicates the exact time and date of the transaction, regardless of when it is posted.

Costs are then rolled up the hierarchies as they were at the time of the transaction. For example, if you change the asset-to-charge’s parent asset between the time you enter the transaction and post the transaction, APM recreates the hierarchy that existed at the time of the transaction, rolling the charges up to the original parent.

You can schedule the cost posting function to run automatically during off-peak hours when fewer people are using the system. You can use the APM Scheduled Actions feature to run this method at a regularly scheduled time. Also, if you have more than one site, then either a scheduled action can be created for each site, or a single action can be created for all sites.

Setup

•	Warehouse GL Account: 001-000

•	Resource Category GL Account: 999

•	Resource Category Cost Type GL Account: 795

•	Asset GL Account: 895-001

•	Maintenance Account: Asset + Resource Category Cost Type

•	Inventory Account: Warehouse + Resource Category

•	Cost of Purchase Order: $10.00

Transactions

•	Two GL account entries will be created:

Asset account: 895-001 795 +$10.00

Inventory account: 001-000 999 -$10.00

•

The asset-to-charge for the work order (and its installed component at the time of the transaction, if one exists) will show the cost of the purchase. That cost will roll up the physical hierarchy as it was defined at the time of the transaction to the site level. Site costs roll up the site hierarchy to the top site in a multi-site implementation.

•	The work order will add the cost of the purchase order to its other costs.

•	The resource category cost type will show the cost of the purchase. That cost will roll up the resource category hierarchy to the top resource category.

•	All relevant financial periods (life-to-date, year, quarter, month) will show the cost of the purchase in the resource category cost type's total charges.

TOP

Viewing Costs

You can view costs in APM from the Costs view on the work order, work order task, asset, and site objects. Costs are always displayed by cost type and financial period in a table and as a chart. Note that if a financial period does not display in the chart, there were no costs posted to it. Double-clicking a cost type row in the table displays all of the transactions that are summarized in it, enabling you to view the asset and the account number charged. Double-clicking a transaction displays the original transaction entry that created the charge.

Note that since costs are displayed by cost type and financial period, you can only see those costs that were associated with a cost type.

APM does not summarize or display the costs charged to your GL accounts. Each inventory transaction creates two accounting transactions, posting the credit and debit amounts to two whole or derived accounts. You can export these accounting transactions to your accounting package for summarization and reconciliation. Your APM implementation consultant can provide you with the information necessary to export and reconcile the data.

TOP