EXP - Expenses
What is EXP
It is part of the CODES subsystem and is used to create, amend and delete the Expense type of code. Codes can also be marked as ’frozen/inactive’ in restrict their use in DOCENT, CASH and the Invoicing procedures. It is not good practice to remove codes that have existing data references but freezing them will inhibit their further usage.
Expense codes are primarily an analytical tool for classifying accounting transactions.
Typical codes to be used would be '', 'Purchase', 'Freight', 'FX', etc. The extensive use of these codes limits the number of accounts in the ledgers and allows for analysis by type of expense and expense groupings. An important reason for using expense codes opposed to individual ledger accounts is that error corrections do not need to create extra ledger postings but are made using SRC/edit with AUDIT providing the trail of changes
EXP codes are used for:-
1) validation/verification
3) optional, for posting the results of WIP account liquidation, using the specified Nominal account.
Procedures that create accounting documents with minimal user interface need to know what EXP codes are to be applied, these are nominated in EXP by use of a feature activated by mouse right-click before edit of the grid. Examples of these are Pre-Finance, Provisions, TRADE Mixing, TRADE Processing, Cash transfers.
Grid contents are:
Importance
It is used by ITAS to recognise specific groups for accrual processing (WIPACCRUE) and for establishing the order of appearance in report WSTATUS/WIP involving expense codes (lower number = higher importance).
The importance 00 is used for grouping all Purchases/Stock codes
The importance 01 is used for Sales codes.
The importance 90 is used for FX codes
Using this numbering correctly allows for easy viewing of Gross margin and the liquidation postings of WIP to the PLR (Hivedome activated feature)
Nominal Account
When WIP accounts are closed, results can be transferred to the Nominal ledger in different ways according to company specified accounting procedures, expenses can be segregated in the transfer. This account represents the expense type in the Nominal Ledger e.g. a company can summarise it's PURCH costs to a single PLR account with a different account for SALEs . There is an ITAS controlled feature that allows the company to nominate the detail part of the a/c reference for each EXP code and the WIPACCRUE + WIP liquidation procedures will direct the results to the correct NOM account using the stem of the WIP liquidation account and the root(detail) from the EXP listing. The results are a PLR by Product/Expense grouping.
Cost type
Code (Ctrl F for list of PHYSCODES/Cost types) that is used to establish the link between accounting expenses(column one) and the trading contract cost/estimates. The code entered will be checked as being a member of the PHYSCODES list but you can enter special codes of PURC, SALE, FX, KP+L, COMM which are used to link accounting transactions to TRADE details. There are several report styles in the WIPSUM procedure that compare a contract's expenses with actual booked values and their relationship is entirely controlled by the content of this table