Settlement of Time-Based Equipment

Prerequisites

The basis for settlement of time-based equipment is:

  • the shipping document (acquisition documents, shipping documents, changes of activity type and retirement documents)

  • the appropriate activity and settlement type (AS type), for example, “in operation”, “available for use”, “downtime”

  • the Settlement Type in the Recipient Master Record

  • the commissioning time in days, the factory calendar and the number of days per month in the recipient master record

  • the Catalog (a type of equipment specifications list) for pricing purposes

    Caution Caution

    The system checks the following:

    End of the caution.

    • whether the equipment type of the equipment (in Customizing) is relevant to stock checks

    • which recipient master record is used for settlement (3-level hierarchy)

Example

Presumption 1:

Equipment 4711 has been defined as an equipment item with equipment type 2000 in the equipment master record.

Settings in Customizing for ETM:

  • Start of the navigation path Under Equipment and Tools Management (ETM) Next navigation step Operations and Functions Next navigation step Stock Check for Equipment Next navigation step Inventory Management per Equipment Type for Shipping Documents End of the navigation path , the indicator ( InvM indicator) has been set for chronological inventory management.

  • Start of the navigation path Under Equipment and Tools Management (ETM) Next navigation step Operations and Functions Next navigation step Stock Check for Equipment Next navigation step Stock Check per Equipment Type for Performance Based Equipment End of the navigation path , the indicator ( InvM indicator) has been set for chronological inventory management.

Settlement type: complete month and remaining calendar days

Days/month: 30 days

Case study 1:

Equipment (for example, a crane) is sent to usage site A with a shipping document on Oct. 15 th . It remains at usage site A for the whole of the settlement period. Settlement takes place on Oct. 31 st . The RetireDate/TBE indicator for time-based equipment is set for usage site A.

Result of settlement on Oct. 31 st: Calendar days determined from Oct. 15 th until Oct. 31 st = 15 days. The retirement date is of no consequence here. The retirement date does not count until an actual retirement (scrapping, sale of equipment and so on) takes place.

The monthly depreciation and interest rate (lower value) is € 3,375.

Condition value: 15/30 * € 3.375 = € 1.687,50

Result of settlement on Nov. 31 st: Calendar days determined from Nov. 1 st until Nov. 12 th (incl. retirement date) = 12 days.

The monthly depreciation and interest rate is the same as above.

Condition value: 12/30 * € 3.375 = € 1,350

Case study 2:

The above equipment is sent to usage site B on Nov. 12 th where its activity type is changed several times. It is sent to usage site C on Dec. 20 th and it remains there for the rest of the settlement period.

Usage site B: retirement date (TBE) does not count

Usage site C: Retirement date (TBE) counts

Result of Settlement on Nov. 30 th:

At usage site B:

An order item from 11.12 until 11.19. = 8 days in operation

An order item from 11.20. until 11.25. = 6 days available for use

An order item from 11.26. until 11.30. = 5 days downtime

Result of Settlement on Dec. 31 st:

At usage site B:

An order item from Dec. 1 st to Dec. 20 th = 19 days in operation (without retirement date – see above)

At usage site C:

An order item from Dec. 21 st to Dec. 31 st = 11 days in operation (acquisition date always counts for TBE)

Presumption 2:

Equipment 4711 has been defined as an equipment item with equipment type 2000 in the equipment master record.

Settings in Customizing for ETM :

  • Start of the navigation path Under Equipment and Tools Management (ETM) Next navigation step Operations and Functions Next navigation step Stock Check for Equipment Next navigation step Inventory Management per Equipment Type for Shipping Documents End of the navigation path , the indicator ( InvM indicator) has been set for chronological inventory management.

  • Under Start of the navigation path Equipment and Tools Management (ETM) Next navigation step Operations and Functions Next navigation step Stock Check for Equipment Next navigation step Stock Check per Equipment Type for Performance-Based Equipment End of the navigation path , The indicator ( Stck indicator) has been set as being relevant to stock checks. In other words, if for organizational reasons PBE documents also existed for TBE, these would be taken into account in settlement.

Result of settlement: settlement would take place twice in this case – once using the shipping document as in case study 1 and a second time using the PBE document.

Recommendation Recommendation

To avoid this, you should block the PBE document against data entry for TBE.

End of the recommendation.