An expenditure category describes the source of your organization's costs. For example, an expenditure category with a name such as Labor refers to the cost of labor. An expenditure category with a name such as Supplier refers to the cost incurred on supplier invoices.
You use expenditure categories when you define organization overrides, for budgeting, and for transaction controls. In addition, you can use expenditure categories in your AutoAccounting rules and in your reporting. Expenditure categories are used for grouping expenditure types for costing.
To define expenditure categories:
In the Expenditure Categories window, enter a unique name for the expenditure category and enter its description.
Save your work.
Fremont Corporation defines the expenditure categories shown in the following table:
| Expenditure Category Name | Description |
|---|---|
| Labor | Labor costs |
| Travel | Travel expenditures |
| In-House Recoverables | Use of corporate assets |
| Outside Services | Outside services |
| Material | Materials |
| Other Expenses | Expenses, excluding travel |