Equipment Costing – R12

Overview – Equipment Costing

The Equipment Costing module is an effective multi-tasking system. It can track different types of costs for each piece of equipment. Types of costs are user defined and unlimited. The user can track repair, maintenance, insurance, licensing… the list is endless. At the same time, the system also tracks revenues against each piece of equipment. This revenue can be automatically calculated by the system according to equipment location and duration or can be manually entered from timesheets.

Equipment Costing contains the following features:

  • Allows multiple equipment classes

  • Manages rates by equipment class, individual equipment or by job

  • Allocates equipment costs based on actual use

  • Applies automatic charge-outs based on detailed equipment location history

  • Allows charge caps on each piece of equipment to a specified percentage of the value

  • Manages multiple location and location transfer tracking

  • Tracks operating vs. repair costs

  • Integrates with Preventive Maintenance, Payroll and CMiC Field modules

  • Shares Equipment Master with Fixed Assets and Preventive Maintenance modules

  • Provides user-defined operating calendar

Module Interactions

Job Costing

Job Costing is one of the key modules with which Equipment Costing integrates. The category and sub-categories for equipment will be set up in Job Costing. The user can indicate the equipment rates that should be used instead on the job billing rates table. The user can assign equipment to a specific phase or sub-phase, have a work breakdown structure assigned to the equipment code, enter direct cost transactions against equipment and direct billing transactions against a piece of equipment and balance these to an offsetting General Ledger account. Distribution in Job Costing is an “E” type.

Job Billing

If a job is using billing type “Job Billing”, then the equipment cost transactions will be billed through the Job Billing module. The billing rate may come from the rate set up in the Equipment Costing module or the rate set on the Job Billing rate table, depending on if the checkbox ‘Use Equipment Bill Rates for TM or Job Billing’ on the job master file is checked or unchecked.


E-timesheets can be entered against a work order that is associated with an equipment item. The distribution type is a “W” type.


Payroll is a key module which integrates with the Equipment Costing module. A piece of equipment can be directly associated with an employee on the Employee Profile screen. When entering timesheets in Payroll, the system will default in the Timesheet Entry screen, the equipment code from the employee profile and retrieve both the charge and bill rate from Equipment Costing to be charged to the job or billed to the owner. Hours used are entered and equipment codes, transaction codes and rates can be changed in Timesheet Entry. From the Payroll module, the user can print an edit listing by group of employees or equipment group and post the equipment usage.

Fixed Assets

The Fixed Assets module allows the user to set up a new piece of equipment or record an existing piece of equipment as an asset, record the original cost, economic life, expected life and method of depreciation, licensing fees and insurance costs. The monthly depreciation, insurance and license fees on equipment will be calculated in this module and posted in Fixed Assets, General Ledger and Equipment Costing.

Preventive Maintenance

In the Preventive Maintenance module, the user can set up a new or existing piece of equipment, add the accumulators, and enter existing and new meter readings such as mileage. This module allows for preventive and corrective work orders and work items to be generated or entered. These work orders can be applied to a job, a piece of equipment or the General Ledger. The labor, parts and maintenance licensing charges, etc., can be posted to Equipment Costing from the closeout of the work order or transactions entered against the work order via Accounts Payable, Payroll and other modules.

Accounts Receivable

In the Accounts Receivable module, an invoice or receipt distribution can be made directly to equipment, cost code and category. Once posted, the revenue will appear in the Equipment Costing module and Job Costing module if the piece of equipment was associated with a job. Inter-company transactions can also be recorded here.

Accounts Payable

In the Accounts Payable module, a voucher can be entered to record cost directly to equipment. Once posted, the cost will appear in the Equipment Costing module. Inter-company transactions can also be recorded here.


In the Requisitions module, a request for material can be entered against equipment. When an “E” type distribution is entered, the department from the Home Location setting will default onto the distribution line. The requisition will either be pulled from the Inventory module (issued against a requisition), or a purchase order will be created from the Requisition module.

Purchase Order

In the Purchase Order module, an “E” line can be entered. The department code will default from the home location set up in the Equipment Costing module. The General Ledger account will default from the transaction code set up in the Equipment Costing module too. Depending on whether the line was marked to have Inventory affected or whether it was marked to be received in Purchase Order (once received will go into Accounts Payable), will determine the module which will have the final posting to Equipment Costing. If the purchase order is checked to have an inventory receipt, then a markup is allowed, which will be added before posting the equipment cost.


In the Inventory module, an issue price and a buy back price can be set on the Item Master screen. On the Price Rules tab of the Posting Control screen (standard Treeview path: Inventory > setup > Local Tables > Control File – Price Rules tab), pricing rules will be defined to indicate whether inventory for equipment is to be issued at sell price or cost and bought back at buy back price or cost. “E” type distributions are used throughout the Inventory module.

Material Sales

The Material Sales (Materials Management) module is fully integrated with the General Ledger, Accounts Payable, Accounts Receivable, Purchase Order, Inventory, Job Costing, Payroll and Equipment Costing modules.