Calculating a FERC Unit estimate - HxGN EAM - 11.07.01 - Feature Briefs - Hexagon

HxGN EAM Compatible Units

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HxGN EAM
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Feature Briefs
HxGN EAM Version
11.7.1

Assuming that the compatible units library records associated to the CU estimate have the following accounting information (accounting code and fixed asset code) defined, the FERC Unit estimate would be calculated as follows:

The initial step in calculating records for the FERC Unit estimate requires aggregating all compatible units library records of the same work function (i.e. Install), accounting code and fixed asset code. For example, since CU_LIB-01A (Pole) and CU_LIB-01B (Crossarm) are both designated as Accounting Code 364 and Fixed Asset Code P.40, the costs of these two compatible units (one single FERC record) will be added together resulting in aggregate labor costs of $120, parts costs of $900 and tools costs of $150, creating a total FERC record cost of $1170.

The second calculation of the FERC Unit estimate considers ‘Additional Costs’ that are calculated only for compatible units library records that can be attributed to a specific accounting code but not a specific fixed asset code. For these records only, the additional costs will be calculated based on the proportion of costs attributable to each fixed asset within the accounting code. For example, since CU_LIB-03 it is observed that costs within accounting code 358 are distributed between fixed asset codes T.25 and B.25 in proportions of 85.71% (i.e. $120/$140) and 14.29% (i.e. $20/$140); the Total CU Cost for CU_LIB_03 of $120 will be distributed between fixed asset codes T.25 and B.25 as $102.85 and $17.15 accordingly.

The third component of the FERC Unit estimate calculations sets out Allocated Costs and corresponding Allocation percentages. Allocated Costs are determined by the sum of the Total FERC Record Cost of each FERC record with any Additional Costs generated for that FERC record; and Allocation percentages are calculated by dividing Allocated Costs for each FERC record by the total of all allocated costs.

The fourth calculation made for a FERC Unit estimate relates to ‘Non-Allocated Costs’, which are calculated only for compatible units that are not designated to be allocated to a specific accounting code, and/or amounts associated with overhead costs. To calculate ‘Non-Allocated Costs’ for each FERC Unit estimate record for this example, the total of all compatible units having no accounting code (i.e. $500; from CU_LIB-04) is proportionally allocated across all FERC Unit Estimate records.

Finally, the FERC Unit estimate is made complete as both allocated costs and non-allocated costs are added together to provide a ‘Total FERC Record Cost’ for each record; and the sum of these total FERC record is reflected as the ‘Total FERC Unit Estimate Cost’.