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1. Introduction & Assumptions
Before use, please review the module Set Up details.
The module estimates the required asset replacement budget for up to 20 years, based on financial years July 1st - June 30th.
Forecasts can be generated in batches with results saved for review, export etc. or as a snapshot for individual assets based on data available at the time.
•Forecasts begin from the current financial year, so the first year includes assets that are overdue for replacement or due for replacement by June 30th.
•Assets overdue for disposal are assumed to be disposed in the month the batch is generated.
•Forecasts are saved based on data at the time of generation.
•Current asset values are based on the initial purchase price, inflated fore the period between delivery year and current year.
•Utilisation-based forecasts are based on average monthly utilisation using readings in Odometer Summary.
Results present:
•Forecast annual replacement cost
•Forecast annual recovery value
•Net annual budget budget required
•Tabular and chart results
•Forecasts can be exported to spreadsheet in csv format for further manipulation if required.
2. Assets Purchased and Replaced in the Same Financial Year
•The asset being disposed is depreciated by one year to reflect the fact that you would not sell the asset for the same price that it was bought i.e. depreciation occurs immediately
•The purchase price of the asset being bought is not inflated because prices do not increase instantly
Example
Purchased January 2022
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Replaced June 2022
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Asset 123.1 purchased for $10,000
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Asset 123.1 sold for = $8,000
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Asset 123.2 purchased for $10,000
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