Volume-based Expense ($)

The Lean-Case Expense Widget is used to capture Cost of Goods Sold, Cost of Selling, Cost of Marketing, Headcount-related cost and general Expenses.

Learn how to enter a cost or expense item based on volumes, e.g.

One-Time Cost based on volumes, e.g. for

Integration/Onboarding Cost a new or an upsold customer
Training cost for a new sales team or sales partner
License Cost for a product sold
Recruiting Cost for an Employee

Ongoing Cost based on volumes, e.g.

Customer Service Cost per existing customer
Support Cost per Sales team or Sales Partner
Manufacturing Cost per Product Sold
IT Cost per Staff Member

Add Expense item

To add a time-based expense to a Cost or Expense Group, click the $-Tab. To add an expense based on time periods, set the Time / Volume switch to "Volume"

Enter the following parameters

Description of cost item
Account to which cost item should be assigned
Cost Amount
Volume Driver for the Cost item (see explanations below)
Revenue Stream/Plan or Headcount Group for the Volume Driver
Starting Month for cost item
Ending Month for cost item
Growth Driver for cost item (if growing in % or in $ terms)
Growth Rate/Value per period (e.g. growing 5% or 5$ per month)
Time period for Growth (growing Monthly, Quarterly or Yearly)

How to select a volume driver

Entering the volume-driver requires 3 steps:

Step	Zoom in for Example
Select the Driver Category (e.g. Customers, Units, Sales Teams, Sales Partners, Headcounts or Revenues)
Select the suitable Volume Driver driver within the Driver Category (e.g. New Customers, Customers at End of Month, Sold Customers, ..)
Select the Revenue stream or the Revenue Stream Plan on which this Volume Driver triggers

Please note: Not all drivers are available in every expense module due to calculation dependencies (e.g. a revenue driver in the CoGS widget might cause a circular dependency for calculations)

Which volume drivers are there

The table below lists the four different cost drivers (units, customers, sales teams and sales partners) and provides examples on how they can impact cost.

Driver	New ...	Sold (New + Renewed) ...	Existing ...
... Units	Production Cost per New Unit	License Cost per Unit Sold	Support Cost per Existing Unit
.. Customers	One-time Onboarding Cost per Customers	License Fee per Active Customer	Support Cost per Existing Customer
... Sales Teams	Ramp-Up Cost per New Sales Team	-	Cost per all exististing Sales Teams
... Sales Partners	Ramp-Up Cost per New Sales Partner	-	Cost per all exististing Sales Partners

Cost per NEW Units/Customers/Sales Teams/Sales Partners are one-time cost which occur every time when

a new unit is sold (e.g. production cost)
a new customer is signed up (e.g. on-boarding cost)
a new Sales Team is set up (e.g. ramp-up cost)
a new Sales Partner is onboarded (e.g. training cost)

Cost per SOLD Units/Customers are one-time cost which occur every time when

a new unit is sold or a unit is renewed (e.g. a 3rd party license fee)
a new customer is signed up or an existing customer is renewed (e.g. an affiliate fee)

Cost per EXISTING Units/Customers/Sales Teams/Sales Partners are periodical monthly cost which occur for

all units in the market (e.g. monthly maintenance cost)
all existing customers (e.g. monthly customer support cost)
all active Sales Teams (e.g. on-going monthly cost per Sales Team)
all active Sales Partners (e.g. on-going monthly retainer per Sales Partner)

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