Expenditures - Capex & Opex
In the expenditure grid you can specify the investments and their projected expenditures over time, whether it be on a monthly, quarterly, or annual basis. The expenditures are specified in a table with fields related to each expenditure line in the grid.
Key Expenditure Fields
The names of these fields are customizable and can be changed by your administrators.
Expenditure Category
The Expenditure Category field classifies each expenditure entry. Common categories include IT, buildings, machinery, and infrastructure. Administrators can customize these categories, often using them to differentiate between capex and opex, each having its own specific set of expenditure types.
Name
The Name field is a standard text input where users must provide a unique name for each expenditure within the same category. This is required for efficient tracking and organization of expenditure items.
In Use Year
This mandatory field indicates the year (in YYYY format) when the expenditure will begin its depreciation cycle, typically the year the asset is put into operational use.
Tax Depreciation Years
The Tax Depreciation Years field defines the duration over which an expenditure is amortized for tax purposes, impacting tax benefit calculations. For capital expenditures (capex), this value exceeds one year, while for operational expenditures (opex), it is set to one year. This field is required but can be automated and hidden based on user settings.
Payment Term
The Payment Term field is available exclusively for organizations that have enabled the "Spend to Cash" functionality, which supports entering expenditures following the accrual accounting principle. This field is configured in days and allows for the seamless conversion of expenditures from the Spend perspective to the Cash perspective by shifting amounts according to predefined payment periods.
Description
The Description field is optional and allows users to provide additional context or detailed explanations about the expenditure.
Expenditure Outlays
Capex and opex are entered separately and combined to form the total requested of spent amount. Expenditure data can be entered on an annual, quarterly, or monthly basis for detailed tracking of financial projections.
Budgeted amount
For organizations using the Weissr Capital Budgeting module, the Budgeted Amount section offers critical insights when a project request aligns with an approved capital budget. Located at the bottom of the expenditure grid, this section presents detailed budgeted expenditure data alongside actual and forecasted amounts. Displaying annual forecasts and actual expenditures facilitates clear comparisons, helping organizations assess budget adherence and identify any variances efficiently. This feature ensures transparency in financial planning and supports more effective budget management throughout the project's lifecycle.
