To optimize performance, companies need to capture and track critical financial information about capital assets beginning when the assets are first being planned and continuing until the equipment is removed from service. This is known as the capital asset lifecycle. At each stage of the lifecycle, information about the asset will change, which requires a complex flow of information across the enterprise as stakeholders determine how changes affect their key activities.
The graph on the side shows at a high level the key activities that take place during each phase of the capital asset lifecycle.
- Capital Planning: Identify projects to pursue, the assets associated with those projects, the proposed schedule and the proposed financing.
- Project Execution: Show how actual project costs are tracking to the forecast.
- Asset Creation: Create a financial profile of the asset that allows all stakeholders to track information they need.
- Asset Maintenance: Describe how repairs have affected the valuation and taxes associated with the asset.
- Asset Retirement: Record when the asset was retired and any costs with its removal.
PowerPlan was designed to track all relevant data across the entire asset lifecycle and provide real-time visibility to all stakeholders. This insight allows them to make decisions with the full financial picture.