Setting Up eAM Cost Management

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You can reference work that has been completed to review operations, resources, and costs. This information can help you understand the scope of work and the process by which it is completed. In order to capture the costs for all work within
eAM, some key setups need to be in place:

  1. Define a default cost element.
  2. Define a default cost category.

First, define a default cost element (Material, Labor, or Equipment) when setting up the eAM Parameters. This is used when no pre-defined mapping exists to the cost elements in eAM. For example, department overheads are not linked to a particular eAM cost element for cost analysis. Therefore, the default cost element carries the cost for analysis. Also, outside processing types of Currency, Amount, and Miscellaneous are not linked to a particular eAM cost element. When one of these types is used in outside processing, the costs are allocated to the default cost element.

Next, define a default cost category when setting up the eAM Parameters. This defaulted cost category is used if there is no cost category defined for the departments.

To define a default cost element and cost category

1. Navigate to the Enterprise Asset Management Parameters window.
2. In the Cost Defaults region, select an eAM Cost Element to indicate how to capture cost overheads, and any miscellaneous resource costs. Valid values are Equipment, Labor, and Material.
3. Select a Cost Category to use as the default for departments that do not have a cost category defined. Department costs are then posted to the appropriate cost classification.

To define a cost category by department

1. Navigate to the Departments window.
2. Select a Cost Category.
Note: It is not required to provide a cost category for a department (crew). However, if you do not provide a cost category for a department (crew), costs for that crew are allocated to the defaulted cost category specified in the eAM parameters. Each time costs for that element are charged to a Work Order, this default cost category is used for reporting and
analysis.

 

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