Classify IT expenses across all departments
I have a client that wants to know the best way to capture IT related expenses across all departments. For example, the accounting department needs IT costs (computer, subscription, etc.) to be marked as IT expenses, in general.
They are using the following segments:
-Custom Business Unit
Any suggestions on how to set this up for IT reporting purposes?
The best way to do this is entirely dependent on your business and the way you report on things. I have typically seen IT expenses broken out into a specific GL account (or more realistically a group of accounts that role up to various summary accounts). This would allow you to track those expenses across all the segmentation you currently have with little modification to your existing configuration. If creating GL accounts to track this is unpalatable for whatever reason, then you’ll need to figure out what kind of segmentation makes the most sense for your business. Is it a sub-categorization of an existing classification? Is it a custom segment? Really you need to look at the business process of how expenses are being entered and flowing into the GL and where users have to make a categorization/coding choice. The best choice is usually the one that makes it easiest for them, that way your data is more likely to be clean. If you create a great configuration that is amazing for admins, but users are entering garbage data, you really haven’t gained anything and possibly have made things worse.