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 <Add Cost/Expense Item> button and select the    tab.


To add an expense based on volumes, 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)
Add Expense ($) as Currency Value

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)

Lean-Case Drivers

Select the suitable Volume Driver driver within the Driver Category (e.g. New Customers, Customers at End of Month, Sold Customers, ..)

Lean-Case Drivers

Select the Revenue stream  or the Revenue Stream Plan on which this Volume Driver triggers

Lean-Case Volume Driver

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)







>