RPM - SET UP LIFECYCLE COST 

What is Lifecycle Cost Tracking?

Lifecycle Cost Tracking helps you capture the total cost of owning a rental asset from purchase to disposal. This includes acquisition costs, maintenance, repairs, and any other expenses tied to your equipment. Once configured, RPM automatically calculates these costs, giving you complete visibility into your true equipment ROI.

Understanding the Components

Before diving into setup, here's what makes lifecycle cost tracking work:

• Lifecycle Cost field: A checkbox that marks any cost as part of an asset's lifecycle
• Lifecycle Cost Ledger Entries: Automatic records created when you mark costs
• Flow fields: Real-time calculations showing Main and Component costs
• Total Lifecycle Cost: Combined view of all costs for complete asset analysis

Marking Costs During Transaction Entry

In Purchase Documents

Track acquisition and maintenance costs as you enter them.

1. Open your purchase document Navigate to your Purchase Order or Purchase Invoice
2. Find the line item Locate the line for equipment-related costs and ensure the RPM Unit is selected on the line.
3. Mark as lifecycle cost Check the Lifecycle Cost checkbox for this line

Note: Fixed Asset Acquisition Cost lines automatically default to lifecycle costs—no action needed!

1. Complete your document Continue processing as normal—the system handles the rest

In RPM Documents

Capture rental-specific lifecycle costs.

1. Access your RPM document Open your RPM Contract or Work Order
2. Identify lifecycle expenses Find lines for equipment-related costs and ensure the RPM Unit is selected on the line.
3. Flag the costs Check Lifecycle Cost for relevant lines
4. Post when ready The system creates Lifecycle Cost Ledger Entries automatically

In General Journals

Record other lifecycle expenses through journals.

1. Open your journal Navigate to General Journal or Fixed Asset G/L Journal
2. Enter your transaction Add your cost entry as usual
3. Mark lifecycle costs Check Lifecycle Cost for equipment-related entries

Tip: FA Journal lines for Acquisition Costs default to lifecycle—saving you time!

1. Post the journal Lifecycle entries are created automatically

Adding Missed Lifecycle Costs

Forgot to mark a cost before posting? No problem—you can add it after the fact.

1. Find the posted document Locate your Posted Purchase Invoice, Posted RPM Invoice, or other posted document
2. Access the correction function Look for Functions → Add Lifecycle Cost in the ribbon
3. Select the lines Choose which lines should have been marked as lifecycle costs
4. Confirm the update Select OK to create the Lifecycle Cost Ledger Entries retroactively

Viewing Total Lifecycle Costs

On Individual Units

1. Open the RPM Unit Card Navigate to your specific unit
2. Review cost breakdown You'll see three key fields:
   • Main Lifecycle Cost: Direct costs for this unit
   • Component Lifecycle Cost: Costs from attached components
   • Total Lifecycle Cost: Combined total for complete picture

On the Unit List

1. Open RPM Unit List View all your units at once
2. Compare lifecycle costs Sort or filter by Total Lifecycle Cost to identify:
   • Most expensive assets to maintain
   • Best performing equipment
   • Units ready for replacement

Managing Component Costs

When units have components (like attachments or accessories), the system handles the math.

• Adding a component: Total Lifecycle Cost automatically updates to include component costs
• Removing a component: System recalculates to exclude those costs
• No manual calculation needed: Everything updates in real-time

Handling Credits and Reversals

When you credit or cancel documents with lifecycle costs:

1. The system automatically reverses the lifecycle cost entries
2. Your totals update immediately to reflect the credit
3. Audit trail remains intact for complete cost history

Best Practices

• Be consistent: Establish clear guidelines for what constitutes a lifecycle cost
• Train your team: Ensure everyone knows when to check the Lifecycle Cost box
• Review regularly: Use the Posted Document correction function to catch any missed costs
• Leverage the data: Use lifecycle costs to make informed decisions about equipment replacement

What's Next?

With lifecycle cost tracking configured, you can:

• Generate ROI reports for each asset
• Make data-driven replacement decisions
• Optimize your rental rates based on true costs
• Identify cost-saving opportunities

Need help analyzing your lifecycle cost data? Our support team can guide you through creating custom reports and insights.

Questions? Visit our Knowledge Base or create a support ticket.