In RuleFour you can use the Capital area to forecast and cost equipment that needs to be replaced according to it's age. For example you may need to replace vehicles after a certain about of kilometers or computers after a certain number of years.

The four main inputs to a Capital Expense are:

  • Hours which represents the usage of the equipment (so this could be kilometers instead of hours).

  • Required Units which declares how many units of the equipment you need, for example 20 vehicles.

  • Asset Life which is used to calculate how old the equipment is before it needs to be replaced.

  • Purchase Price which declares the price to purchase replacements for the equipment.

Using Equipment Starting Balances you can specify the details of existing equipment if they need to start with a certain about of Hours against them.

Capital Expenses also include various option to salvage equipment. For example if the number of required equipment drops for a few periods then you can choose to keep, immediately sell/salvage or keep equipment if it will be needed again in upcoming periods.

Finally, once you've created your Capital Expense you can preview it to see the purchases, replacements and salvages for each calendar period.

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