CI Cost management

Table of contents

Introduction

The CI Costs tab has two sections : 

  • Purchase which contain fields related to the purchase of a CI; and
  • Costs which shows the cost breakdown that is used in the total cost of ownership (TCO) calculation.



The updated cost of a CI is not limited to the purchase price. During the CI life cycle, that is, from its creation until its decommissioning, we seek to know the total cost (purchase and support) affecting this CI. The sum of these costs produces the total cost of ownership (TCO). 

In Octopus, TCO is calculated based on : 

  • Total Purchase Cost :
    • initial purchase cost + cost of all CI having a child relationship with the CI
  • Total Maintenance Cost :
    • internal and external costs (parts and labor) applied in the incidents
    • internal and external costs applied on maintenance
    • service contract cost, when the CI is included
    • imported cost of maintenance : costs imported from a system used before the Octopus integration

« Purchase » Section

  • Supplier
    • List of suppliers - comes from the Suppliers module. The selection indicates from which supplier the CI was bought
  • Purchase Order
    • Free text to indicate the purchase order number
  • Funding Source
    • List of funding sources - the selection indicates the CI funding source (IT, department, etc.). (to modify the list items, go on Tools > Reference Data Management... > General > Funding Source.)
  • Cost Center
    • Free text to indicate the cost center for the CI
  • Invoice Number
    • Free text to indicate the invoice number when acquiring the CI.
  • Purchase Cost
    • Amount representing the CI purchase cost
  • Date of Purchase
    • CI Purchase Date
  • Duration of amortization
    • Amortization period (in months) of the CI, according to the accounting model of the organization
  • Warranty Type
    • List of warranty types - the selection indicates the CI warranty type (Parts or Parts and labor).
  • Warranty end date
    • CI warranty end date
Note that these fields can be imported from an external source with the Octopus DataImporter program. For more information, please click on DataImporter - Data Import From An External Source.

« Costs » Section

The Costs section shows the distribution of costs that are used in the calculation of the CI total cost of ownership (TCO). 
In the Octopus context, the TCO evaluation is based on certain rules as described below. 

Recompute Costs

  • The recompute costs  updates all costs related to the CI.(note that to use this option, you need appropriate Octopus permissions.) 
  • It is also possible to recompute the cost of all CIs*. Go to Options > Recompute all CI costs :


 

Attention : This can be very time consuming and required a lot of resources. It is recommended to execute this outside normal operating hours.

Total Purchase Cost

Total purchase cost = CI purchase cost + Child CI purchase cost.

  • Example: A printer was purchased at a cost of $ 2,400 and a UPS at a cost of $ 200 has a parent-child relationship with the printer. To total purchase price after recompute costs is $ 2,600

Total Maintenance Cost

The total maintenance cost represent the following costs:

  • Incident
    • External parts and labor costs + internal parts and labor costs applied in incidents.


      Internal and external labour activities
      For more details on Part Management, please read the Part Management article
  • Preventive Maintenance

    • External parts and labour costs + internal parts and labour costs for all service request types identified as impacting the CI cost calculation (includes the Planned Requests).

    • This option can be configured in the Advanced tab from Tools > Reference Data Management... > Service Request > Types

  • Service Contract Cost

    • Service contract cost applied on the CI. Only ongoing or expired service contracts are considered in the calculation.

  • Imported Cost of Maintenance

    • Maintenance costs imported by the Octopus team during the integration project.

Total Cost of Ownership (TCO)

Total purchase cost + total maintenance cost.

Please note that : 

  • the location contract costs are excluded
  • labour costs from problem and change requests are excluded
  • if many CIs are related to a SR, total parts and labour costs will be applied on each CI.
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