Purchase Price vs Replacement Cost

Understand the difference between historical cost and future forecasting value.

Quick Answer

Purchase Price = what you paid. Replacement Cost = what the Spend Forecast uses to plan future capital.

DREAM tracks two distinct financial metrics for every asset — one for historical records, one for future planning.

Purchase Price

The historical ledger amount — exactly what you paid on the day of purchase. This value rarely changes.

Replacement Cost

What it would cost to buy an equivalent new item today when this asset reaches end of life. This is the figure the Spend Forecast dashboard widget and the Reports section use to calculate future capital requirements.