Setting Up Expense Categories and Expense Types

Expense Categories and Expense Types are used to manage and track project costs. They must be set up before forecasts and actuals can be recorded.

Expense categories are the broader groups that various expenses fall under. They are designed to organise expenses into manageable segments for financial reporting and analysis. Examples of expense categories might include categories like ‘IT Infrastructure’, ‘Travel & Entertainment’, ‘Consulting Fees’, ‘Marketing’, etc.

Expense Types, on the other hand, are specific types of expenses that will be captured against projects within these broader categories. They represent detailed expense entries that accumulate to form the total project cost. For example, under the ‘Marketing category yo might have expense types like ‘Advertising’, ‘Digital Marketing’, ’Market Research’, and more.

These categories and types can be customised according to your organisational needs. They allow for detailed tracking and reporting of costs, ensuring that all project-related expenditures are accurately recorded and managed. 

Steps to Set Up Expense Categories and Expense Types

1 - Access the Financial Administration Page:

• Navigate to the Financial Administration page from the dropdown menu under the avatar.

• Select "Expense Type Management" under Financial Settings.

2 - Add or Edit Expense Categories:

• Add Expense Category: Click on the "Add Expense Category" button to create a new category.

• Edit Expense Category: Click the edit pencil icon next to an existing category to modify it.

• Provide Details: Enter the name and description of the expense category.

• Save: Click 'Save' to apply the new category or changes.

3 - Add or Edit Expense Types:

• Add Expense Type: Click on the "Add Expense Type" button to create a new expense type entry.

• Edit Expense Type: Click the edit pencil icon next to an existing expense type entry to modify it.

• Configure Details:

  • Expense Type Name: Provide a descriptive name (e.g., Online Advertising, Hardware Purchases).

  • Expense Category: Assign the expense type to a relevant expense category.

  • Expense Class: Set the expense class as either Resource or Non-Resource.

  • User Locked: If set to true, the Expense Type is not available to Project Managers as an option for selection when capturing financials.

  • Capex/Opex Classification: Determine whether the expense type is classified as capital expenditure (Capex) or operational expenditure (Opex).

  • Active/Inactive: Set whether the expense type is in use or not.

• Save: Click 'Save' to apply the new expense type or changes.

For a detailed guide on setting up expense types, read this article.