The TCO is an acronym for Total Cost of Ownership. It is one of the most important reports for fleet management, as it shows the costs of each individual vehicle broken down into the various cost groups.
As always, the better the data basis, the better all analysis and insights will be in the end. This article describes how the different costs are imported into Avrios and what you have to pay attention to in order to have the perfect data basis for detailed cost evaluations.
Here the report this article is about:
Static (contractual) costs
The first cost block concerns the static costs or contractual costs. These are all costs that are incurred regularly and in the same amount for vehicles. The static costs flow from the contracts and master data stored in Avrios into the TCO, i.e. invoices are not taken into account.
Static costs include:
Financing costs: Costs incurred for the financing of the vehicles. These are mapped via the financing contract in Avrios (leasing, long-term rental, purchase or credit contract). It is important that the contracts are filled in completely and include the respective monthly fees. In the case of full-service leasing contracts, it is also advisable to break down the individual cost components to achieve a higher level of granularity in the cost evaluations.
Insurance contracts: Insurance costs are reflected in Avrios via the insurance contracts (individual contracts or piece price insurance). In the case of full service leasing, the insurance costs are often part of the leasing contract. In this case, they can simply be entered as a component in the leasing contract.
Tax: The annual vehicle tax is entered in Avrios under the reference data of the vehicle in the field "Vehicle tax (per year)". The tax is automatically included in the TCO on a monthly basis. This also has the advantage that your vehicles do not show increased costs at the beginning of the year when the tax is booked, but these are distributed over the months.
IMPORTANT: For static costs Avrios does not read out invoices as the costs already are part of the TCO through the contracts.
Variable costs
Variable costs include all costs of your fleet that are not already covered by the static costs. This includes (not exhaustive):
Repairs
Fuel and toll
End of lease contract invoices and other costs charged outside of the fixed monthly leasing rates
Tire change (if not already included in the lease contract)
Vehicle maintenance (if not already included in the lease contract)
Import of fuel invoices
Fuel invoices are imported directly into Avrios for most fuel providers (usually monthly). This ensures that both the fuel data is correctly stored for each vehicle and the mileage is also automatically updated. Depending on the country and provider, the toll can also be imported directly via this.
Remaining variable costs
All other costs, which are neither static costs nor fuel costs, can be imported into Avrios via the invoice function. An imported invoice in PDF format is digitised by Avrios, whereby all invoice items are displayed individually. The individual invoice items are then assigned to the vehicles and automatically provided with the correct cost type.
CONCLUSION: By following the above steps, you will ensure that you have a complete and correct TCO in Avrios. With this basis, nothing stands in the way of further optimising your fleet!
Here is a video that explains the basics of the TCO: