Setting up the Equipment System

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Set up the equipment cost accounts in the Chart of Accounts located in the Ledger module. It is recommended that the equipment cost accounts are assigned to their own account group as this will assist in reconciling the Equipment module to the general ledger. These accounts should be designated as either direct or indirect equipment costs. Indirect equipment costs are costs that cannot be easily linked to a specific piece of equipment but these costs may be accumulated and then allocated to equipment that has been used in the same period.

In addition, a 'contra' account should be set up as part of the equipment cost account group that will be used to offset the equipment rental transactions. Equipment rental transactions for company owned equipment are not additional costs of the company but rather a transfer of costs to direct job expenses.

The following is a short example of direct job cost and equipment cost accounts:

Account	Group	Description	Cost Account Type
50021.00	50	Equipment Rental - Company Owned	Job Cost - Direct
50022.00	50	Equipment Rental - 3rd Party	Job Cost - Direct
58010.00	58	Repairs & Maintenance	Equipment Cost - Direct
58020.00	58	Depreciation	Equipment Cost - Direct
58030.00	58	Gas & Oil	Equipment Cost - Indirect
58090.00	58	Allocation of Equipment Rental Expense	(Do not designate)

2.	The Equipment Categories option of the Equipment module contains the interface with the Ledger and Job Cost systems and must be set up before any individual piece of equipment can be added to the system.

The Properties option on the Equipment menu is used to define the decimal number that will be used with any job cost phase to denote equipment rental expense. The rental expense entries are created automatically in the Payroll system for timecard entries that have been linked to an equipment code and to a department code that has been defined as equipment rental. Note that the equipment journal entry transactions do not utilize this feature.

Note: This option is used in place of setting up a phase on the equipment category or the payroll department code.

4.	A detailed list of each piece of equipment is set up through the Equipment List option. This option is also used to record the current location of the equipment.