This is the operation line for which the equipment is needed. It is important to fill in this field, as the equipment will then be included in the planning. The field is used in the following situations:

• When scheduling the equipment, as it must be available at the time this operation is performed. This allows you to specify the correct planning dates (date required, shipping date) on the equipment calculation lines for purchasing purposes.
• The number of hours worked and the number of pieces produced relating to this operation are relevant for the depreciation of the equipment. The hours and the number of pieces are registered in the equipment data when the hours worked are recorded in the Time Registration module.

If this calculation line is part of the calculation of a phantom part (a semi-finished product for which the product calculation is copied to the calculation), this field shows the line that contains the phantom part. This enables you to see which calculation lines are part of a phantom part.

The depreciation costs (also called 'variable costs') entered for this equipment in the Equipment file are automatically copied to this field. You can change these variable costs on the equipment line.

The depreciation costs are eventually multiplied by the number of hours the equipment was used, or by the number of pieces produced with the equipment (depending on the depreciation method). The number of hours or pieces is retrieved from the time registration records relating to the operation in which the equipment was used. In the actual costing phase, this will result in the total depreciation costs of the equipment. The depreciation sum will also be saved in the Equipment file, to allow you to track the sums already depreciated on each piece of equipment.

This is the sum of the fixed costs process run, i.e. the fixed costs attaching to the use of the equipment.

The fixed costs specified for this equipment in the Equipment file are used automatically, but they can be changed on the equipment line.

Example

If a saw needs to be sharpened after each process run, and the sharpening costs are $ 50, the fixed costs will be $ 50.

If the order code of the equipment is 'Use from warehouse', the Supplier field is not used.

If the order code is 'Purchase to order', the supplier in this field will be copied to the purchase requirement in the Purchase module. The field value can still be modified here.The supplier will eventually be displayed on the purchase order.

The order code indicates how the equipment will be obtained. There are two options:

• Use from warehouse - The equipment is present and can be used.
• Purchase to order - The equipment is not present and must be purchased.

If the order code is 'Use from warehouse', the actual costs are determined by the total depreciation costs and the fixed costs.

If the order code is 'Purchase to order', the equipment will appear on the purchase requirement, and the equipment can be purchased. The actual costs will then originate from the purchase invoice.

The purchase price of the equipment is retrieved from the Equipment file. If the order code of the equipment is 'Purchase to order', the purchase price is copied to the purchase requirement and the purchase order.

If you select this check box, this calculation line will be authorized automatically in the production modules. When the default calculation is copied to a production file, the authorization is also copied.

To have the line checked before it is approved in the production stage, leave this check box empty. The planner will have to authorize the line before it is advanced to the production stage.