Operating Expenses

In the Operating Expenses screen you enter the operating expenses and salaries for each of the departments or expense groups defined in the Department Table.

The departments appear in list on the left side of the screen and the operating expenses data for the selected department appear on the table in the middle of the screen. When the screen is loaded the selected department is the first department in the list. To switch department, you simply click another department on the list. The data for the previously chosen department is automatically saved, the new department becomes the chosen department and its operating expenses data is loaded to the screen ready to be edited.

The operating expenses of each department are entered in three different sections: fixed expenses, variable expenses and personnel salary and cost. The buttons at the top of the screen enable you to switch between the three sections. The data entry is different for each section and is described below. When you enter data in a monthly or quarterly column the data will be summed and presented in a Year Total column (if you selected to show it in the Preferences screen).

Φ Note: You should not duplicate production and labor costs already included in the Product & Cost window.

Fixed Expenses

In the Fixed Expenses screen you enter data for operating expenses that are not related directly to the sales and do not change immediately with the level of sales, e.g. rent of offices, equipment maintenance, etc. The data is entered in amounts per each period.

The columns that the Fixed Expenses table includes are as follows:

Description: Description of the expense item

Currency: The currency used to pay for the expense. The currency code is chosen from a drop down list of currencies entered in the Currency Table.

Market/Profit Center: Each expense item can be allocated to a profit center and you can view the processed data in the Profit Centers screen under Analysis menu. This analysis displays the profitability of each of the business units. Analyzing this may provide you with more accurate information and understanding about the business and the keys to its success. The Business Centers are defined as the markets in the Market Table.

VAT Rate: If the 'Specify VAT rate for each Expense type' in the General Data screen (VAT tab) is marked, an additional column to enter the VAT rate per each expense item is displayed.

Φ Note: The expense amounts entered in the periods should be net (without the VAT amount).

Collection days: This column is displayed if the 'Specify Days Payable for each expense type' option is marked in the General Data screen (General Parameters tab). Enter the average number of days in which you pay to your suppliers. This is used to calculate the cash payments derived from the expenses and costs

Variable Expenses

In the Variable Expenses screen you enter operating expenses that change with the level of sales or direct costs of the business. E.g. Commissions for sales people are, in many cases, percentage of sales. The expenses are entered in each period as a percentage of the total sales, or direct costs or sales for each market.

The columns that the Variable Expenses table includes are as follows:

Description: Description of the expense item

% Of: Select from a drop down list the item from which the expense will be calculated as a percentage, namely: total sales, direct cost, sales per specific market.

Profit Center: Each expense item can be allocated to a profit center and you can view the processed data in the Profit Centers screen under the Analysis menu. This analysis displays the profitability of each of the business units. Analyzing this may provide you with more accurate information and understanding about the business and the keys to its success. The Business Centers are defined as the markets in the Market Table.

VAT Rate: If the 'Specify VAT rate for each Expense type' in the General Data screen (VAT tab) is marked, an additional column to enter the VAT rate per each expense item is displayed.

Φ Note: The expense amounts entered in the periods should be net (without the VAT amount).

Collection days: This column is displayed if the 'Specify Days Payable for each expense type' option is marked in the General Data screen (General Parameters tab). Enter the average number of days in which you pay to your suppliers. This is used to calculate the cash payments derived from the expenses and costs

Salary & Staff (Personnel)

In the Salary and Staff screen you enter the type and salary cost of the employees that the business hires.

For each type of employee you enter the annual salary, social expenses and benefits. Then you can enter the number of employees that you plan to have for each type in each period, e.g. you can enter "Programmers" as the type of employee, then the average salary of a programmer and then the number of programmers you need in each period.

In a small business with existing employees you may use each row to enter the specific name of an employee, his/hers salary, social and benefits and then 1 as the number of employees in each period.

The columns that the Salary and Staff table includes are as follows:

Description: Description of the employee type or a name of an employee

Annual Salary: In this column enter the total amount of salary that is paid to the employee in a year, excluding the social expenses and benefits, which you may enter in the following columns (as a percentage of the salary). In case you prefer to include social and benefit expenses as an amount added to the salary, then you should not re-enter its percentage in the following columns.

Currency: The currency in which the salary is paid. The currency code is selected from a drop down list of currencies entered in the Currency Table.

Profit Center: Each expense item can be allocated to a profit center and you can view the processed data in the Profit Centers screen under the Analysis menu. This analysis displays the profitability of each of the business units. Analyzing this may provide you with more accurate information and understanding about the business and the keys to its success. The Business Centers are defined as the markets in the Market Table.

Social Expenses: The social expenses as a percentage of the salary.

Benefits: The benefits as a percentage of the salary including social expenses. There are two pairs of columns prepared for the benefits data in case there are benefits that are paid in different months.

Month Paid: The month in which benefits that were calculated during the year are paid.

Social Benefits on Special Personnel Costs: Note: Social Benefits, entered as percentage of Salary, are now calculated also on the Special Personnel Costs and not only on the salary.

Toolbar Buttons

The toolbar in the Operating Expenses screen includes the following buttons:

OK - Close screen (and save all changes if applicable)

Exit - Close screen and discard any changes if applicable.

Add row - Add a new row at the end of the displayed table

Insert row - Insert a new row above the selected/marked row

Delete row - Delete the selected/marked row

Print Table - Create a report for the current table, showing it on the print preview screen

Forecast - Copy cell values across next periods

Export to MS Excel file - Exports the displayed table to MS Excel

Buttons (next to toolbar)

Fixed Expenses: Display the Fixed Expenses table for the selected department

Variable Expenses: Display the Variable Expenses table for the selected department

Salary and Staff: Display the Salary and Staff table for the selected department