Operating Expenditure

Activa OpEx Requisitioning software forms an integral part of the Activa Procurement system. What makes it stand apart is that it takes a more practical approach to cost recording, control and reporting than its contemporaries and presents the user with a visual assessment of current and historical transactions from the global level to infinite detail.

Our concern is primarily effective business process control; optimising and simplifying the task and the information flow whilst still imposing the appropriate management controls. A critical part of this is is the ability to monitor operational cost performance at any level in real time and to generate meaningful management reporting on demand.

These are REAL benefits that remove the normal administrative overhead associated with implementing and managing the operating expenditure budget. It takes the task to the source of the transaction without creating any additional effort and reduces the administrative burden in the back-office.

Activa captures the transaction at source, at the time of creation, allocates the budget funds [even where no pre-defined budget exists]and imposes appropriate approval process. It auto-generates electronic order documentation for suppliers and can email this directly, if required. The act of raising the requisition automatically does all of the accounting for you. No coding required.

Activa OpEx gives your front-line operational personnel the ability to raise electronic requisitions for consumables, maintenance work, general operating expenses and utilities at source. They can send purchase orders via email directly to the supplier. Through validated budget funds and precise activities, the correct general ledger string for cost accounting is applied automatically without reference to any chart of accounts. The Activa graphical interface transparently allocates any expenditure to the correct cost centre, branch or department [or even an individual asset if you want to be that precise].

All electronic documentation is backed up by stringent control of signatory limits of authority and areas of responsibility. When working within these limits of authority, raising requisitions is just a simple, one-step process for any user. This ensures total management control but with automatic allocation of budgeted funds and a strictly controlled approval process!

Higher levels of expenditure approval take a little longer but are also fully electronic. To make this even more convenient all documents can now be reviewed and approved via a secure web interface to any suitable mobile device.

This is where Activa Opex comes into its own. Impacting operating expenditure against the correct Activity and directly onto the specific area of expenditure is the first step in creating a full history of your costs of operation. Even if you haven't recorded a detailed budget, Activa will record the expenditure in exactly the correct place. The nature of the expenditure activity and the precise situation where the expense is incurred immediately allocates the correct GL journal string. This means that the invoice cannot be miscoded! It actually doesn't really need to be coded at all. Invoice capture and matching is the easy part.

Generating journals to the accounts payable system for operating expenditure invoices does not require any additional system configuration if you are already interfacing your capital expenditure invoices. You simply start using the system. Invoices can be captured simultaneously with Capex in mixed batches, if preferred, with no additional effort than that.

Activa allows you to analyse your expenditure simply by clicking the mouse. This simple approach builds an analysis of costs and expenditure by account and area of activity automatically giving you access to performance results at any level.

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Article last updated : Feb 21 2012 4:47PM