CAPEX/OPEX tracking with Expense Type field for Work Items

Background

Tracking Capitalized Costs on a Project is important to many companies running development projects (product development, software, real estate and infrastructure) as in many jurisdictions you can claim tax credit for creation of new assets for your organization.

 

Note: If your organization only delivers customer-facing billable work, the categorization of work into Capital Expense (CAPEX) and Operating Expense (OPEX) may not be relevant for you.

 

So far, Financial Planning with Non-Labor has given you the ability to set whether a particular Non-Labor resource is CAPEX or OPEX.

What's New

“Expense Type” is a new Work Item-level field to support the appropriate categorization of Labor efforts and costs, governing whether they should will be calculated as part of the CAPEX budget or the OPEX budget.

 

Benefits

 The categorization of the work itself enables accurate calculation of Budget Cost rollup fields. 

 

How it Works

Expense Type supports work item hierarchy – so if you are able to capitalize a whole Project or Milestone of work as Capital, you won’t need to go task-by-task. You can override per task and per Non-Labor resource giving you the flexibility to set up your project's financial plan as you need. 

 

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