Capital allocation

The capital allocation type is designed for use with typical capital costs such as new and replacement equipment purchase costs. The capital allocation type calculates an allocation factor using data from multiple calendar periods as specified in the model configuration settings.

Below is an example of the capital allocation calculation logic. In this example, XERAS has calculated the total capital expenditure for new equipment for a Caterpillar 797 haul truck fleet. The capital expenditure is then allocated to the mining activities in which the haul truck fleet participates, for example waste removal and ore mining, using fleet operating hours to calculate the allocation factor.

Data used in the allocation logic is:

1. Total fleet operating hours (from the source spreadsheet):

   

2. Operating hours for each mining activity (from the target spreadsheet):

   

3. Total fleet new capital expenditure (from the source spreadsheet):

   

The capital allocation logic is:

The result of the allocation logic is the apportionment of diesel fuel costs, on a period-by-period basis, into the waste removal activity:

XERAS provides a visual representation of the allocation logic in the Drill Down feature. Right-click on the cell containing the cost allocation, then select Drill Down. The following diagram displays.