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ExpenseCategories ExpenseCategories

Categories

FOLIO uses a classic categorization of expenses to better structure your budget. Every expense planned in a budget belongs to one of three main categories: Operational expenditures (OPEX), Capital expenditures (CAPEX) or Financial expenditures (FINEX).  Each of these categories will be shown only if it holds at least one expense in it for a given budget. Once a category is displayed on screen, you can collapse it or expand it by clicking on the triangle icon (

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You should classify expenses in their appropriate category so that you can later get relevant information about the categories themselves, like the total planned cost for all capital expenses.

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OPEX OPEX

Operational expenditures (OPEX)

Operational expenditures are all non-capital expenses incurred during normal operation.  They are the day-to-day expenses required during the execution of a project, such as the salaries, rent, insurance, electricity, and computer maintenance contracts. They do not include physical assets or loan financing for example.  All positions added to a budget are automatically added to the OPEX category. 

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CAPEX CAPEX

Capital expenditures (CAPEX)

Capital expenditures are used by an organization to acquire or upgrade physical assets with a useful life extending beyond the taxable year.  Examples of capital expenses are purchase of a computer, photocopier or building.

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FINEX FINEX

Financial expenditures (FINEX)

Financial expenditures are usually interest expenses, such as loan financing, credit card interest, etc. 

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ExpenseRecurrence ExpenseRecurrence

Expense recurrence

Expense can be defined to be recurrent using the Recurrence dialog that appears when clicking the edit link of the Recurring field in the various edition dialogs. See Recurrence for more information.

Recurrent expenses can be amortized in which case their payments will be evenly spread upon their recurrence period. For instance, a monthly amortized expense of 1,200$ that is defined to recur for 1 year will result in 12 payments of 100$ each occurring once a month. See the Expense Cost Calculation section below for more examples on amortized expenses.

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TimeFrame TimeFrame

Expenditures and Folio's

Time Frame

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ExpenseCosts ExpenseCosts

Expense costs

The cost of an expense is calculated by multiplying its payment amount by the number of payments.

Cost = Number of payments x Payment amount

The number of payments depends on the recurrence definition for that expense and the Folio's

time frame.  Only payments occurring (inclusively) between the Folio's start and end dates (see Folio Configuration) are taken into account. 

Note also that non-working dates are not taken into account (e.g. a rent payment won't be skipped if the incurrence date is a holiday).