Operating Expenses

Planning methods, line item detail, allocations, and cross-model imports

Module 3Module Walkthrough20 min

📖 Tell How OpEx Planning Works One method per account, driver-based inputs, line item detail, and single-step allocations — all with Progressive Disclosure.

👁 Show Instructor Demo Facilitator opens OpEx Planning, switches between accounts with different methods, demonstrates Line Item Detail, and shows an allocation rule.

✅ Do Try OpEx Planning Find an account using Prior Run Rate. Change the growth percentage and observe the effect on the forecast. Then find an account using Line Item Detail.

Key Capabilities

One method per account — applies uniformly across all entities and departments (changed from v1.x)
Accounts set to "Planned in Headcount" or "Planned in CapEx" are hidden from the OpEx planning grid
Progressive Disclosure shows only relevant inputs for the selected method

Available Planning Methods

Method	Description	Key Input
Prior Run Rate	Prior period × (1 + growth %)	Growth %, # periods to go back, $ adjustment
Units x Rate	Units × rate	Units (e.g., hours), Rate, Adjustment
Rolling Moving Average	Average of N prior periods	# periods for average
Direct Input	Manual monthly entry	Enter amounts directly
$ Amount Growth	Prior period + $ growth amount	Growth amount
Fixed Average	Fixed average over N periods	# periods
Line Item Detail	Amounts from Line Item Detail page	Entered on Line Item Detail page
Planned in CapEx	Auto from CE model — data entry disabled	(none)
Planned in Headcount	Auto from HC model — data entry disabled	(none)

OpEx module — account list with planning method dropdown and current period actuals — OpEx account list — each GL account shows its assigned planning method and current period actuals for reference

OpEx Planning page — Prior Run Rate method with growth % input — Prior Run Rate method — enter growth % and number of periods back; system calculates the forecast automatically

OpEx Planning — Units x Rate method showing rate and volume inputs per account — Units x Rate method — separate inputs for volume (e.g. hours) and rate; system multiplies to produce the forecast

OpEx Line Item Detail page — vendor/functional area breakdown per expense account — Line Item Detail — enter individual expense items with vendor and functional area tags; summarizes back to the account

OpEx Allocations page — allocation rule configuration showing source account and target accounts — Allocations setup — define source account, target accounts, and allocation method; runs after planning is complete

⚠ Cross-Model Imports

After changes in HC or CapEx models, you MUST run FIN – Import from HC Model and FIN – Import from CapEx Model. Data does NOT sync automatically. If OpEx values don't reflect HC or CapEx updates, this is always the first thing to check.

Line Item Detail

Enter description, then specify extra dimensions (vendor, functional area, geography)
Once amounts are entered, dimension values cannot be changed without clearing amounts first
Bottom grid shows sum by vendor — select a specific vendor to see all costs for that vendor
Line items planned here appear in the Summary but NOT on the main OpEx planning page

Allocations

Define source (entity, dept, account), allocation % or $, and target
Basis options: FTE, even spread, or manual (entered on Allocation Basis Input page)

🚨 Allocations Extension Point

IFP v2.0 supports basic single-step allocations out of the box. For sophisticated allocations (waterfalls, multi-step, reciprocal, extra dimensions), the Profitability application is the right tool — it integrates with IFP.

Process Pages

Page	Purpose
OpEx Planning	Main planning grid — dynamic inputs per account/method
OpEx Line Item Detail	Enter detailed line items with extra dimensions per account
OpEx Allocation Basis Input	Enter manual basis values by entity and department
OpEx Allocation Rule Definition	Define source, target, and basis for each allocation rule
OpEx Summary	Overview by entity, department, and account

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