Asset Cost Capping: What is it and how is it applied

This feature allows users to set limits, or "caps," on asset costs to control spending. Once the total cost for an asset reaches the defined cap, no additional costs are added, even if the asset remains in use. These caps can be configured based on business needs, either at the company or cost location level, or for specific assets or asset templates. The applied capping rules are automatically reflected in the asset cost reports, ensuring accurate and consistent cost tracking.

Logic and Limitations

• Adding Capping Settings: Caps can be added when:
  
  • Creating or editing an asset or asset template.  To learn how to create assets or asset templates, please refer to the links below:
    
    • How to add a Hilti asset in ON!Track
    • How to add a non-Hilti asset in ON!Track
    • How to create an asset with a template
    • How to add an asset template when creating an asset
    • How to add an asset template with asset import
    • How to add an asset template under the administration tab
  • Updating asset cost settings using the Excel upload
• Viewing Asset Cost Information: The Asset Cost tab displays cost information that reflects any applied cap settings.
  
  
  
• Generating Reports: Reports under the "Asset Costs" category include cap values where applicable.
• Setting Cap at Cost Location Level: Apply caps to specific locations.
• Setting Cap at Company Level: Apply caps across all cost locations.
• Exclusion of Warehouses: Warehouses are excluded from capping.
• Missing Asset Value: If an asset value is missing, capping will not be applied to that asset

Asset Cap Settings

How to set up capping for your asset?

To enable capping, choose one of the following options based on how you want to limit asset costs:

• Cap per location: Set a limit based on a percentage of the asset’s value at each cost location.
• Cap for lifetime: Set a limit based on a percentage of the asset’s value for its entire usage.

Once the capping type is selected, a cap limit must be defined. This limit is calculated as a percentage of the asset’s value. Therefore, the asset value is mandatory. If the asset value is not provided, capping cannot be applied.

Example:

If the asset value is 550€ and the asset value cap percentage is set to 80%, then the cap limit is calculated as follows: Cap Limit = 0.8 × 550 = 440€

Special settings on the asset level

All these settings can be configured at the company or location level. If you want specific cap settings for each asset, you need to set the attribute “Always Follow Asset Cap Settings” to “Yes”.

Different Capping options

When capping is applied, the Current Asset Cost reflects the capped amount. Once the cap is reached, the cost no longer increases, even if the asset continues to remain at the cost location.

To identify when the cap was applied, users should refer to the Asset Cost History, which provides a detailed record of cost changes over time:

Capped at % of Asset Value, Per Cost Location

• New Cost Location: When an asset moves to a new cost location, the Current Asset Cost resets and starts calculating again until the cap is reached at the new location.
• Before Cap is Reached: Costs are calculated normally for each workday until the cap value is met.
• When Cap is Surpassed: No further costs are added for the remaining days at that location.
• After Cap is Reached: For workdays after the cap value is reached, the Current Asset Cost incurred is zero.
• Calculation Period: The entire time the asset stays at a location is included in the cost calculation, even if it spans more than one month.

Capped at % of Asset Value (considering whole lifetime)

• First Cost Location: The same rules apply as for "Capped at % of Asset Value, Per Cost Location".
• New Cost Location: When an asset moves to a new cost location:
  • Current Asset Cost resets to zero.
  • Costs will increase only if the total cost across all locations (Lifetime Asset Cost) is less than the cap.
  • If the Lifetime Asset Cost has reached or exceeded the cap, the Current Asset Cost remains zero.
• Calculation Period: The entire Lifetime Asset Cost is considered, even if the asset stays at a location for more than one month.

Missing Asset Value

Capping is not applied if the asset value is missing at the asset level. The asset value is required for the cap calculation to work.

If you are interested in understanding cost reporting, please check: Cost Reporting: How to extract the data