Capital Planning is one of the EPBCS modules, and through the use of this tool, capital management becomes easy and efficient. Capital Planning automates things like tracking the age and costs of an asset. This in turn frees up the time to focus on key decisions, like whether to buy or lease? Should an asset be retired? Replaced? An unfortunate truth is that most businesses are too busy tracking these metrics to take the time to make decisions based on them. This tool is meant to rectify this.

Once the setup is complete, the maintenance will be approximately as frequent as the sale and purchase of new assets. As the majority of the calculations can be automated, only changes involving the addition or removal of assets to the outline would require any maintenance. The purpose of this blog is to help the user purchase and lease new assets in Capital Planning. For an overview of the entire Capital Planning module please follow the link here: Capital Planning Module

To add a new asset in Capital Planning first navigate to the investment tile. From here, select the second menu from the top on the left-hand side. You should see a screen that looks like this:

From here you must first select your POV. Be sure not to forget to select the appropriate Asset Class and Project the asset is associated with. Both the Asset Class and list of projects operate as a Smart List. 

Once you have finished making your selections, click on the actions button in the top right corner, and select add new asset from the drop-down menu shown below:

A pop-up screen should appear that allows you to select the various characteristics of the new asset. For example, you can set its purchase date, in-service data, asset rate, # of units, salvage value, among other things. Once the selection is done simply select Launch.

We should now be able to see that the new asset has been added to our rows with the name we gave it. In this case, Forklifts 2018. If you scroll to the right, you can also see some of the various properties that were selected for the asset. If you select the tabs along the top you can make changes to other properties like funding assumptions, and maintenance costs. These are however outside of the scope of this blog.

It is worth noting that if you have made a mistake, and want to remove an asset, you can simply highlight the row and select “Remove Asset” from the action drop-down menu like so:

Technically, this new asset does not “exist” yet. To move these assets to existing assets, you can select the option “Convert New to Existing Assets”. This can be found directly below “Remove Asset” in the screenshot above. Once selected, the following pop-up should appear.

Simply fill in the prompts as you see above and select launch to convert the asset to an existing one.

The asset can no longer be found under investments, so we will navigate briefly to existing assets second tab to confirm that it was converted properly. This can be found at the top of your screen at any point. Below you can see the highlighted Existing Assets tile.

Here we can see the asset Forklifts exists and has the same properties as those set for Forklifts 2018.

One final note before moving onto leased assets is how to change asset assumptions. To do so, we will go back to the “Investments” tile and select the fourth and final tab on the left.

You should arrive at the following screen:

Here we can input the appropriate assumptions for each asset class. Using the tabs at the top we can change what assumptions we are addressing.

Now let’s add a leased asset. The steps are quite similar, but instead of the 2nd tab on the left, we will use the third. You should be taken to a screen that looks quite familiar already. You may have noticed the data here is quite sparse, but the addition of new members works the same way.

The following screen looks generally the same, with some minor differences. This includes the ability to change payment frequency and payment timing as opposed to purchase and in-service dates, for example. Once again, simply hit launch after completing the necessary inputs.

We can now see that the new member, Leased Forklifts, is sitting in our rows:

We can then follow the same steps to convert this leased asset to an existing one. Simply select the actions drop-down menu and select Convert New to Existing Assets. Input the necessary fields and hit launch. Afterwards, navigate to Existing Assets 3rd tab to confirm that the asset has been converted properly.

Capital Planning is an exciting and powerful tool for asset life cycle management. The ability to compare the pros and cons of buying vs leasing assets extremely useful and easy to use. This is one use case for Capital Planning among many.

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