Value Driver Tree 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 the 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.
• The module defined for the Input template to maintain both of the Input node values is CAPEX Planning
• After calculation, the result will be posted to the same level of details by asset.

Input Node

• Node1: CAPEX Acquisition Value
• Module: The CAPEX Planning module is 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: The same CAPEX Planning module can be used as the template and the 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 to creating the formula node in the Value Driver tree.

Create Value driver

1. To create a new value driver tree, click on the Drive menu:

   • Under Calculations, click on + and select Rules to open popup for capturing value driver details:

   • Description: FA_Depreciation Plan

   • Action Type: Select Value Driver

   • Model: CAPEX Planning

     

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)

1. 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 the 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 unselected for fields.'

     

Input Tab

1. 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