Posting Equipment Revenues

Objective

Post equipment revenue allows you to apply the costs of use for equipment to the projects on which they have been used and to charge equivalent revenues to the "equipment" projects in order to monitor their costs and revenues.

Ideally each piece of equipment should have its own project to allow precise tracking of the expenses (maintenance, repair, insurance, fuel, etc.) as well as the equipment’s revenue. It is also possible to track the costs and revenues of several pieces of equipment using a same project. By "equipment" maestro*means any piece of machinery that can be used on a project. This includes small tools right up to heavy equipment.

 

Prerequisites

• Chart of Accounts

 

Summary

• Create an Equipment Project
• Create Equipment
• Configuration
• Enter Hours
• Post Equipment Revenue

 

Steps

To post the costs of usage for equipment to a project, firstly the "equipment" project must be created, the equipment itself is created and then specify the configuration for the cost postings. Lastly, transactions must be entered in order to indicate the equipment used and the projects to which the costs are to be charged.

If the Preventive Maintenance module is installed and the Equipment Management option is being used to create equipment, the project can be created automatically.

 

When posting equipment revenue, the debit will be posted against the PAG (project, activity, group) identified in each transaction. The credit will be posted to the revenue PAG and to the account identified in the equipment file.

 

Create an Equipment Project

maestro* > Projects > Maintenance > Project > Project Management

 

1. In the section on the right, in the Project group, click on Project Management. The Project Management window is displayed.
2. Complete the information according to the table below:

Fields	Enter / Select
Number	The project number
Description	The description of the project
Equipment	Check the box to identify this as an equipment project

3. Complete the information in the Project Desc. tab:

Fields	Enter / Select
Start Date	The project start date
Template	Select the template to use NOTE: If no template is selected, you will need to enter the required information in the Activities and budgets tab.

4. Complete the information in the Parameters tab:

Field	Enter / Select
Default Equipment Rates	Equipment rate NOTE: The rate can be selected when entering hours, however, the easiest way to indicate it is by entering which rate to use by default when creating a project. NOTE: In Equipment Management, it is possible to enter 4 rates. This simplifies the task of selecting the correct hourly rate when entering hours.

5. Click on Save.
6. Click on the Activities and budgets tab, verify the assigned activities or modify if required.
7. Click on Save, then Quit.

 

Create Equipment

Equipment management allows the creation of equipment that generates a cost of use and an internal revenue.

maestro* > Time Management > Maintenance > Time Management > Equipment Management

 

1. Complete the information according to the table below:

Fields	Enter / Select
Code	The equipment code NOTE: The equipment code should represent the identification numbers, these are the numbers that will be entered into the transactions.
Status of hours entries	Active by default NOTE: It will not be possible to enter transactions for equipment whose status is Inactive.
Name	The equipment name
Cost	Hourly rates for the equipment use NOTE: It is possible to identify 4 hourly rates. NOTE: It is important to have a constant for all equipment; generally rate 1 represents the use of the equipment alone. Other examples: with operator, with fuel, with operator and fuel.
Expense activity	Available Values: Default activity The default account for revenue clearing Group The default expense group
Equipment Revenue Accounting	Available Values: Revenue Project The project for revenue postings Activity The activity for revenue postings Group The group for revenue postings Revenue Account The revenue account for revenue clearing

2. Click on Save, then Quit.

 

Configuration

Configuration allows the user to determine which GL accounts are to be automatically used when performing certain transactions and to configure the various options available.

maestro* > Projects > Maintenance > Projects > Configuration

 

1. In the section on the left, click on General under Projects.
2. Complete the information in the Equipment Clearing section, according to the table below:

Fields	Enter / Select
B/S Project	The Asset project for equipment accounting
Activity	The activity for equipment accounting
Group	The expense group for equipment accounting

3. Click on Save, then Quit.

The PAG used always comes from Configuration > General; therefore if this changes, it has financial implications. Manual adjustments will be necessary. The accrued PAG should point to a general accrued transition account.

 

Hours

Enter the hours of use for the equipment on the basis of a project, an activity and a group linked to the tracking of the costs of equipment.

The entry of hours for equipment can be done in any of the following options: Enter Hours, Time Sheets, Work Orders and Service Management.

 

maestro* > Time Management > Project Time > Processing > Enter Hours

 

1. Complete the information in the Details section, according to the table below:

Fields	Enter / Select
Date	The date for the hours
Equipment	Equipment for which the hours are entered
Project-#	Project number to which the expense is assigned
Activity	Activity to which the expense is assigned
Group	Group to which the expense is assigned
Equipment Rate	Default hourly rate for the equipment. NOTE: It is possible to select another rate.
Hours	Number of hours of use for equipment

2. Click on Save.
3. In the section Summary of non-transferred transactions, select the transaction to transfer the hours.
4. Click on the Transfer button.
5. Click on Yes.

The detailed hour distribution – equipment report is displayed by date, including a summary of the affected accounts.

6. During the Transaction Transfer step, the following postings occur:

Description	Débit	Credit
Equip., Machinery (expenses)	X
PAG (Transit)		Y

7. Click on Exit.

 

Post Equipment Revenue

The post equipment revenue allows the user to generate the GL postings linked to internal revenues calculated for the equipment. Once the equipment hours are entered, verified and transferred, the post equipment revenue can be done.

The Post Equipment Revenue report allows for consulting the internal revenues associated with a piece of equipment before its posting of transactions for hours transferred or not. This information is also presented at the time of posting, allowing the user to check the details prior to proceeding. Only equipment configured for equipment revenue accounting appear on this report. In order not to forget the posting of equipment revenue, maestro* recommends executing it at the same time as the payroll process.

 

maestro* > Time Management > Project Time > Accounting > Post Equipment Revenue

 

1. Complete the information according to the table below:

Fields	Enter / Select
Date Range	Dates to post equipment costs

2. Click on Accept.

3. Review the transactions displayed on the report. The report includes transactions for equipment hours not transferred which will be automatically transferred in the posting.
4. Click on Yes to post the amounts.
5. The Projects – Project to Project Transfer is displayed.

The income posting created by the transfer between projects will be accounted for in accordance with the selected end date.

6. During the “Post Equipment Revenue” step, the following postings occur:

Description	Débit	Credit
PAG (Accrued Equipment)	Y
Equip. Revenues		Z

7. Click on Exit.

 

Last modification: May 11, 2024