A rotating asset is an asset that can be managed in a storeroom. A rotating asset references an item or tool that has the Rotating field set. A common phrase will be that a rotating asset belongs to a rotating item.
Why the term rotating? Well, first, it has nothing to do with whether a part of the asset makes a rotational movement, like an impeller on a pump. A rotating item is an inventory item with a current balance where the instances of the item are tracked individually as serialised assets – a rotating asset. The term “rotating” is used because you are tracking the serialised assets from the storeroom to an operating location, then to a repair shop and back to a storeroom ready to be issued again – rotating stock, it is issued, and eventually returned to be issued again. The balances of a rotating item are controlled by the movement of rotating assets in and out of the storeroom.
You can create a rotating asset at the time the asset is created by referencing the rotating item, or you can use the Assets application action Change Item Number.
When an asset references a rotating item, the Meter Group referenced on the item is copied to the asset and this creates the asset meters that are part of the meter group.
The classification on the item is also copied to the asset including the attributes of the classification, the specification, and their attribute values. If the description generation function is turned on for the classification, then the assets description will be generated. The generated description may include the classification description and one or more attribute values including any prefixes and units of measure. This can create consistency in the asset description.
The action Apply Item Assembly Structure can create an asset hierarchy, referenced as subassemblies and spare parts. A hierarchy of items can be added to the rotating item in the Item Master application and Item Assembly Structure tab. Items that are rotating will become subassemblies, items that are not rotating will become spare parts. There is no limit to the number of levels in the hierarchy, although three might be considered a practical limit, as it is not easy to visualise the hierarchy if it is four or more levels deep. Having said that, applying an Item Assembly Structure three levels deep and another to the asset created as a grandchild can create an asset assembly five levels deep. Component assemblies may be more reusable using this type of method.
Locations of type OPERATING can also reference a rotating item and the features described for assets also work for locations. There is no Change Item Number action as the Rotating Item field is editable on an operating location. Meters can be created on the location when the rotating item references a meter group. The classification and specification attributes are copied from the rotating item, and there is an action in the Locations application Apply Item Assembly Structure.
Some features of rotating items which are unique to rotating assets, include the copying of the item’s image to create an image for the asset, this does not happen for a location.
A Rotating Item may be Condition Enabled which means that the same item number can be used if the assets are in different condition states and consequently are likely to have different issue unit costs based on the condition state. For example, an item with a NEW condition state would have 100% of the unit cost, an OVERHAUL condition state 85%, a REPAIR condition state 50%, a USED condition state 30%, and a SCRAP condition state of 5% of the unit cost of the item. Before returning a rotating asset to a storeroom you can change its condition code from the Move/Modify Assets action and Attributes tab. Locations are not condition enabled.
Depreciation Schedules can be created for rotating items in the Item Master application. Multiple depreciation schedules can be created using the Manage Depreciation Schedules action, these can be on a time or meter basis. When an asset is received through the purchasing process the depreciation schedules on the item are copied to the newly created rotating asset.
It is also useful to remember that assets can also be tools when they reference a Rotating Item, in this case the item is a tool item, and we might refer to this as a rotating tool. There is an Item Type field on the asset which can have a value of ITEM or TOOL. When the asset is a rotating tool the Tool Rate, the hourly rate for using the tool asset, is copied from the Tools record and Tool/Organization Details action.