Functions

Scenario 5

Use Function to Calculate Fixed Asset Depreciation

• Generally, metrics are derived based on Individual drivers

• Fixed Asset Depreciation is a metric calculated from Individual driver CAPEX Acquisition Value.

• Fixed Asset Depreciation = Depreciation of CAPEX Acquisition Value for its useful life

• Fixed Asset Depreciation is Formula node with the above formula with Input node- CAPEX Acquisition Value

Scenario details

• Formula to calculate: Fixed Asset Depreciation = PRC_DEPRECIATION_SPREAD('CAPEX Acquisition Value' , ASSET.UL_FA, 1).

• CAPEX Acquisition Value is captured/maintained by asset

• Module defined for Input template to maintain both the Input node values - CAPEX Planning

• After calculation, the result will be posted to the same level of details by asset

Input Node

• Node1 - CAPEX Acquisition Value

• Module - Module CAPEX Planning created with the below definition

  • (rows = asset, columns = time, filter = version)

• Relation to be used in Formula = Merge

Expected Output Node

• Formula Node - Fixed Asset Depreciation

• Module - Same module CAPEX Planning can be used as the template & level of details are the same.

  • (rows = asset, columns = time, filter = version)

• Formula to be used = PRC_DEPRECIATION_SPREAD('CAPEX Acquisition Value' , ASSET.UL_FA, 1)

Create Formula

There are 2 parts of creating the Formula node in Value Driver tree

Part 1 - Create Value driver

Step 1: To create a new value driver tree, Click on Drive menu

• Under Calculations, click on + & select Rules to Open popup for capturing value driver details

  • Description - FA_Depreciation Plan

  • Action Type - Select Value Driver

  • Model - CAPEX Planning

Step 2: Click on + Add Rule on the level 2 header to open the node creation pane

General Tab

• Name: FA Depreciation Cost

• Description: FA Depreciation Cost

• Method: Formula

• Module: CAPEX Planning

• Formula: 'PRC_DEPRECIATION_SPREAD('CAPEX Acquisition Value' , ASSET.UL_FA, 1)

Step 3: Select the field member tagging to post the result of the calculation

Click on the filter Icon on the right of the each of fields and make relevant selections

• Cost Center: Same as Source

• Version: Same as Source

• Time: Same as Source

• CAPEX Assets: 67001000 - Depreciation - Buildings

Note - By default - the output put is posted as "Same as source", even if left not selected for fields.

Input Tab

Step 4: Click on Input Tab and Open node - CAPEX Acquisition Value

• Module: CAPEX Planning

• Relation: Merge

• Fields member selection: Click on the filter button on the right of each field

  • Cost Center: Context

  • Version: Context

  • Time: Context

  • CAPEX Assets: CP1000 - Purchases - Buildings