Equipment

The preliminary costing process for a production file may include parts, operations, equipment, and external operations. The section below explains how equipment costs are calculated in Isah. In this context, there is a difference between equipment taken from the warehouse that which is (or may be) depreciated, and equipment specifically purchased for an order.

If equipment is depreciated, Isah needs information about the operation for which the equipment is used, and more specifically about the number of pieces worked using the equipment or the number of hours the equipment is used (depending on the depreciation method used). In this case, you also have to record on the equipment line for which operation line the equipment is required. If you fail to do so, no depreciation can be calculated in the preliminary costing phase, and only the fixed costs and contributions will be calculated.

Equipment with a 'From warehouse' origin

For equipment with a 'From warehouse' origin, the costs calculation in the preliminary costing phase depends on the depreciation type of the equipment, i.e. 'By time unit', 'By processing quantity', or 'No depreciation'. The depreciation type is displayed on the General tab of the Equipment form.

For depreciation by time unit, the calculation is as follows:

• (Depreciation costs * Number of hours from the linked operation line) + Fixed costs + Contributions

For depreciation by processing quantity, the calculation is as follows:

• (Depreciation costs * Number of pieces from the linked operation line) + Fixed costs + Contributions

If no depreciation takes place, the calculation is as follows:

• Fixed costs + Contributions

Equipment with a 'Purchase' origin

The preliminary costs shown in this case are:

• Fixed costs + Contributions