In RedTeam Flex, Cost Pools allow you to configure grouped costs, such as vehicles, facilities, tools, computers, etc. in order to better manage your accounting process. This is particularly useful when measuring and allocating funds for the use of equipment. By utilizing Cost Pools when creating new Equipment items, you designate a category for that item to be grouped and included in for cost accounting. The Equipment item will then automatically use the Cost Pool rate for accounting and measuring purposes.
Example: You want to create a Cost Pool for the use of a backhoe. The individual costs are $950 to rent the backhoe for one week, $200 for gas, and $20 an hour to hire an operator. So the total cost to use a backhoe is $1,950/week, or $390/day. The allocation must be based on the cost driver, in this case number of work days spent using the equipment. You can set up the Item with an Allocation Method of Equipment Assignment Duration, with a rate of $390/day to be calculated for the days assigned to the Employee.
Add a Cost Pool
Cost Pools allow you to set up Rates and Allocation methods for costs related to Equipment. Once Configured, you can add or edit multiple Equipment Categories to link to each Cost Pool. The cost allocation for each pool can be set up in one of three ways, as described below.
Equipment Allocation Method Options:
Custodian Work Hours - Equipment will be allocated by the Rate entered based on hours an Employee who is assigned that Equipment item enters on their Timesheet for the duration that they are assigned the item.
Equipment Assignment Duration - Equipment will be allocated by the duration the Equipment item is assigned to a particular employee for all working days. Total amount is determined and allocated when the Equipment item is returned.
Actual Equipment Usage - Equipment will be allocated by the actual usage entered on the Employee's profile in the Equipment tab or from an Employee's Progress Report when the Equipment Item is assigned to that Project.
IMPORTANT: When the third option is selected, Equipment Items linked to any Category that this Cost Pool is associated with will allow assignment of the Item to a Project in addition to an Employee. These Equipment Items may then be tracked on an Employee's daily Progress Report within a Project (RedTeam Flex web and RedTeam Flex Mobile app).
Steps:
From Configuration, select "Cost Pools"
Click the New (+) icon
Enter a Description for the Cost Pool to be linked to one or more Equipment Categories later (eg. "Power Tools" or "Bulldozers")
Select an Equipment Allocation Method (see narrative above for descriptions of each option)
Enter the Unit of Measure (if Actual Equipment Usage), Rate, and Year for which this Rate applies
Click "Save"